Press Releases

1 February	DEFAQTO ANNOUNCES NEW STAR RATING PROCEDURE
	Defaqto today announced the introduction of a new procedure for star rating personal financial products. Over the past seven years Defaqto has been producing star ratings for a wide range of financial products. During this time, the process was based on products being scored for their quality against a set of product criteria using Defaqto’s unique Product DNA process which is built into the Aequos database. Depending on the scores achieved, products were located in one of five star categories, with Five Stars being the top rating and One Star the lowest rating.
29 January	DEFAQTO EXHIBITS AT YOUR MONEY MATTERS EXHIBITION
	Defaqto is exhibiting at the Your Money Matters Exhibition on 2/3 February 2008 at ExCel London. Unlike other exhibitors who will be promoting their products and services direct to the public, Defaqto will be encouraging visitors to think about planning their finances, particularly related to major events in their lives.
23 January	AGGREGATORS UNDER SCRUTINY AGAIN, SAYS DEFAQTO
	Findings by the British Insurers Brokers’ Association (BIBA), following its investigation into price comparison websites, confirm Defaqto’s own findings in its survey of aggregators for its Motor Insurance in the UK report 1 published in October 2007. Defaqto carried out a detailed study of the services offered by 17 leading aggregator sites, including Moneysupermarket, Confused.com, GoCompare, Comparethemarket and TescoCompare.
14 January	DON'T BE CAUGHT OUT BY POOR SKI INSURANCE COVER, SAYS DEFAQTO
	Despite many European resorts reporting excellent skiing conditions, things can still go wrong when you take to the slopes. Equipment can go missing, pistes can be closed or avalanches can disrupt travel arrangements, so skiers are advised to check the cover offered before buying winter sports travel insurance, says Defaqto.
10 January	POSITIVE IMPETUS TO PROTECTION MARKET FROM NEW ABI GUIDANCE, SAYS DEFAQTO
	The Association of British Insurers’s publication 1 giving guidance to insurers on the treatment of non-disclosure, provides a platform to rebuild adviser and consumer confidence in protection products, according to financial research company Defaqto. The guidance will result in more claims being paid for Critical Illness, Income Protection and Life insurance where medical information has not been disclosed but not deliberately withheld.
9 January	BORROWING MORE COULD COST YOU LESS, SAYS DEFAQTO
	A review of the personal loans market by Defaqto reveals that borrowers could end up paying less in repayments by taking out slightly larger loans with the same lender. This anomaly arises due to the way most lenders structure their rates, which differ according to the ‘tier’ size the loan falls into. Generally, a higher interest rate is charged on the lowest tiers and rates then decrease as the amount borrowed increases, often then plateauing and remaining unchanged for the larger amounts.
3 January	CREDIT CARDS - BREAKING THE MOULD
	In recent times the credit card industry has done little to encourage customer loyalty, preferring instead to pursue new customers with a wide range of enticing introductory deals, such as 0% balance transfers, 0% purchase or enhanced introductory cash backs. Meanwhile, existing customers were largely ignored and, unsurprisingly, the credit worthy ones decided to take advantage of these deals and switched cards on a fairly regular basis. Against this backdrop Capital One has announced an initiative which is a genuine attempt to engender loyalty within its current customer base, as well as an initiative designed to win new customers.
2 January	PROVIDER CHURN COULD DISRUPT PET INSURANCE MARKET, SAYS DEFAQTO
	In its new report into the Pet Insurance Market 1, Defaqto raises the concern that the rate of provider churn could have a detrimental effect on the market unless adequate arrangements are put in place to protect existing policyholders. Defaqto has identified six companies that have left the market in the last year and nine that have joined, a churn rate of 20%. Unless those pulling out of the market have put in place adequate transition arrangements to ensure that their customers’ pets can remain on cover without having to be re-insured, public confidence in the market could be weakened.
2 January	BANKS AND BUILDING SOCIETIES BATTLE FOR CHEAPEST MORTGAGES
	While a bank was the cheapest mortgage lender in 2007 for existing borrowers in Defaqto’s annual survey, building societies took two of the top five places and five of the top ten. In its survey, Defaqto found that for standard variable rate mortgages or their equivalent for existing borrowers, HSBC retained its top spot as the cheapest mortgage, closely followed by two building societies, Skipton Building Society and then Nationwide.
24 December	DON'T BUY A PET WITHOUT INSURANCE, SAYS DEFAQTO
	Anyone tempted to buy a pet or who received one for Christmas should not forget that a key part of having a cat or dog is making sure it can be properly looked after when it is ill, says Defaqto in its most recent report, Pet Insurance in the UK 2007. New owners need to look beyond the immediate pleasure of having a pet to what can happen to it over its life. Not only are the costs of treating pets rising, but just as with humans, new treatments are being introduced all the time to improve a pet’s quality of life when it is unwell.
12 December	DEFAQTO LAUNCHES BUY-TO-LET HOME INSURANCE TABLE ON AEQUOS DATABASE
	Defaqto has launched a buy-to-let home insurance table for the residential market on its Aequos database. This is the first time that a comprehensive analysis of the buy-to-let market has been made available to insurers and brokers. The table analyses policies from 32 providers and includes a full listing of policy features, product benefits and policy excesses. Also included is the full policy wording for each product.
12 December	UNIT LINKED BONDS NEED TO ADAPT TO HOSTILE MARKET CONDITIONS, SAYS DEFAQTO
	In its latest report, “Unit Linked Bonds in the UK 2007” 1, Defaqto examines the pressures that are undermining these saving instruments and how they will affect their appeal to investors. The report examines the likely impact of the proposed introduction of the 18% flat rate of Capital Gains tax, the implications of the Retail Distribution Review, the growing importance of fund supermarkets and how life companies are likely to react to the growing influence of multi-manager propositions in the consumer investment field.
11 December	PRESSURE ON GOVERNMENT AND INDUSTRY TO PROMOTE PENSION SAVINGS, SAYS DEFAQTO
	In a recent press release, the ABI gave its support for Personal Accounts but only on the basis that they add to savings rather than undermine existing pension provision. This position is supported by consumer research carried out for Defaqto’s Retirement Savings & Income report 2007 . This revealed that 71% of those surveyed will be relying on the State Pension to provide them with income in retirement while 49% stated that they will rely on their employer’s pension scheme, 24% will rely on bank or building society savings and 22% said they would be relying on personal pension savings.
10 December	DEFAQTO'S NEW FREE MULTI MANAGER GUIDE COMES AT AN OPPORTUNE TIME
	Just as the FSA is raising doubts about the ability of some advisers to justify multi-manager selection 1, and with the industry in a state of flux, an independent updated guide designed to help financial advisers improve their understanding of multi-manager fund management has just been produced.
4 December	FREE DEFAQTO REPORT SHOWS HOW IFAS RATE PROTECTION PROVIDERS FOR SERVICE
	A new report “Protection Service 2007 1 “ is the second annual protection study from Defaqto into how IFAs rate provider service levels. The report is downloadable free of charge from: www.defaqto.com/report Based on research among 500 IFAs 2, it identifies what IFAs consider the most important service functions from the 39 examined, how well each provider performed when the service functions were grouped into nine benchmark categories and which companies were the top three preferred providers in each main type of protection contract.
23 November	DEFAQTO CALLS FOR A FURTHER EXTENSION TO THE BANKING CODE
	The impending changes to the Banking Code address many of the concerns that have been raised in recent times and Defaqto applauds these initiatives. However, in one particular respect, Defaqto would like to see a further extension of the Banking Code. This relates to ensuring that easy access savings accounts that levy interest penalties on withdrawals are advertised in such a way that the consumer can instantly understand what type of account it is.
21 November	HIGH INTEREST REGULAR SAVINGS ACCOUNTS MORE STYLE THAN SUBSTANCE, SAYS DEFAQTO
	Savers thinking of investing in regular savings accounts offering high rates of interest should carefully evaluate what they will actually earn and the conditions of the offer, says Defaqto. The majority of the highest paying regular savings accounts have conditions attached to their availability. Typically they are restricted to customers who either have a specific current account with the bank or to new customers prepared to open such an account.
20 November	FUND SUPERMARKETS INCREASINGLY IMPORTANT TO SIPPS , SAYS DEFAQTO
	Nearly half of providers marketing SIPPs offer a defined link to fund platforms in their propositions to aid mutual fund trading, according to Defaqto’s Retirement Savings & Income Report 2007. The figure has risen from 43% earlier in 2007 to 47% currently, with Defaqto expecting the rise to continue as the battle between structured and flexible SIPP propositions intensifies.
12 November	CREDIT CARDS REWARD DISLOYALTY, SAYS DEFAQTO
	Consumers are being rewarded for disloyalty by credit card companies restricting best offers to new customers, says Defaqto’s in its latest report “Credit Cards in the UK”. Despite the introduction of some ‘anniversary’ offers for existing customers, such as those offered by the Egg Card and the Post Office’s Two in One Credit Card, consumers are still able to get better deals by switching to a new card.
12 November	DEFAQTO MARKS QUANTRATER ANNIVERSARY WITH NEW SERVICE
	Defaqto has marked the first anniversary of its QuantRater fund rating service by launching an email messaging service to customers of its Aequos Engage product selection tool. QuantRater ranks funds on a scale of one to five, with funds rated three and over showing above average efficiency in their use of risk and consistency of performance.
9 November	TRUST IS KEY TO EXTENDING PROFESSIONAL PENSIONS ADVICE
	Defaqto’s recently published ‘Retirement Savings & Income Report 2007 – A review of the individual retail pensions market in the UK’ 1 – shows that many consumers still trust themselves and their family and friends for advice on retirement planning. Defaqto’s research 2 surveyed 1,000 consumers of which 27% stated that they trust their own judgement when it comes to advice on planning for their retirement, 23% trusted their friends and family and 12% trusted their spouse/partner.
7 November	TAKE ADVANTAGE OF CASH BACK CREDIT CARDS, SAYS DEFAQTO
	I While the number of cash back credit cards has dwindled over recent years, their complexity has increased, making it more and more difficult for them to be compared, claims Defaqto in its latest report “Credit cards in the Uk” + Consumers are now faced with an array of different incentives and conditions. These include: introductory enhanced rates; tiered earning rates; maximum qualifying spends and enhanced earnings at specific retailers, such as supermarkets and petrol stations, making ready comparisons between cards extremely difficult.
7 November	CREDIT CARDS: RECOUPING LOST INCOME, SAYS DEFAQTO
	In its latest report ‘Credit Cards in the UK’, Defaqto claims that credit card issuers have invented new charges to compensate for the loss of revenue from the cap placed on default payments by the Office of Fair Trading in August 2006. In June 2006, the average fee for a late payment was £22.21 and this has now reduced to £11.81. Over the same period the average fee for exceeding credit limits has reduced from £22.21 to £11.73 and the returned payment fee has fallen from £20.10 to £11.39. These falls are having a significant impact on provider income.
31 October	BEWARE USING WEB AGGREGATORS, SAYS DEFAQTO
	Defaqto in its latest report into the motor insurance market: ‘Motor insurance in the UK, 2007 – the rise of the aggregator’ 1 says people buying insurance on the Internet need to be careful when using web aggregator sites. Over the past couple of years these sites have been heavily advertised and promoted as offering an easy way for consumers to buy their insurance. While providing multiple quotes for a single application, consumers could be missing out on better deals because leading insurers are often not included.
22 October	BONFIRE NIGHT BECKONS, BUT ARE YOU PREPARED?
	As the season of bonfire night parties beckons, make sure you have home insurance to cover any unforeseen events that may damage you or your neighbours’ properties warns Defaqto, a leading independent financial research company.
8 October	DEFAQTO'S RETIREMENT, SAVINGS AND INCOME REPORT LAUNCHED TO THE PENSIONS INDUSTRY
	At a dinner to mark the official launch of Defaqto’s new report in London last week, the guests heard that the industry was in a healthy state. Matt Ward, Principal Consultant – Pensions and Wealth Management at Defaqto was able to point to the increased proportions of financial advisers selling personal pensions, SIPPs, annuities, transfers and drawdowns. Only stakeholder and executive pension plans were down on the previous year.
3 October	NEW REPORT SHOWS MANY PEOPLE SLEEP-WALKING INTO RETIREMENT
	A new report, published today by Defaqto, highlights the complacency that many people have about how they are going to fund their retirement. The Retirement Income and Savings Report is a comprehensive analysis of the entire personal pension market, looking at everything from the economic background to retirement, how pensions themselves are developing, the service that financial advisers get from pension providers as well as what provision ordinary people are making for their retirement.
1 October	ARE YOU INSURED FOR THIS WINTER'S STORM DAMAGE?
	With the rise in incidents of ‘extreme weather’ in the UK, householders need to be aware of the exclusions incorporated in buildings and contents policies, particularly with regard to storm damage and flooding, warns leading independent financial research company Defaqto.
24 September	OPPORTUNITIES STILL EXIST FOR PENSION PROVIDERS
	While it is widely acknowledged that people are not saving enough for their retirement, a new report from Defaqto to be published in early October, indicates that there are still good opportunities for pension providers to flourish in the current environment.
24 September	HURRY WHILE STUDENT BANK ACCOUNT DEALS LAST
	Students should look beyond the freebies, incentives and discounts being offered by most of the high street banks this autumn, and select an account on the basis of a more important feature - which for most will be the size of the interest-free overdraft, says leading independent financial research company Defaqto.
17 September	QUARTERLY ISSUE OF FREE MULTI-MANAGER GUIDE FROM DEFAQTO
	Recent research by Defaqto, the financial research company, has found that current account holders rate “good customer service” as the most important feature in a current account. Exactly a third of respondents rated it as their most important requirement, in front of “free when in credit” and “a good interest rate”.
7 September	CURRENT ACCOUNT HOLDERS RATE SERVICE AS TOP REQUIREMENT
	Recent research by Defaqto, the financial research company, has found that current account holders rate “good customer service” as the most important feature in a current account. Exactly a third of respondents rated it as their most important requirement, in front of “free when in credit” and “a good interest rate”.
3 September	CONSUMERS SHOULD SHOP AROUND FOR THE BEST CURRENT ACCOUNT DETAIL, SAYS DEFAQTO
	Consumers should regularly review their current accounts to ensure they’re getting the best deal available, according to leading financial product research company Defaqto. Competition in the current accounts market has been hotting up, leading to increased opportunities for account switching as providers fight to increase their market share.
31 August	CHARGES FOR CHEQUES A POSSIBILITY, WARNS DEFAQTO
	More than half (53%) of 16 to 24 year olds never write cheques and a further 33% write cheques less than once a month, a survey by Defaqto has found. The leading financial research company’s findings reinforce earlier research by the Association for Payment Clearing Services (APACS), which found that cheque volumes dropped 8% in 2006.
30 August	DEFAQTO ANNOUNCES NEW RETIREMENT SAVINGS AND INCOME REPORT
	Defaqto Limited, the UK’s leading financial research company and market commentator, today announced that it will be publishing a ground – breaking report into Retirement Savings and Income in September this year. Building on the success of Defaqto’s previous pension reports, the new report will have a broader remit in that it will cover both pre – and post - retirement solutions for individuals.
23 August	INCOME PROTECTION INSURANCE IS ESSENTIAL FOR FINANCIAL HEALTH
	Income protection insurance (IPI) has an essential role to play in providing financial security, says Defaqto. In its latest report, the UK’s leading financial product research company has called for insurers and advisers to show greater commitment to this essential protection product. Defaqto believes that it not only protects an individual’s current standard of living but also their future financial well-being, should accident or illness strike and they are unable to work.
23 August	DEFAQTO GOES COMPLETELY ONLINE
	Defaqto, the financial research company, reports that its database products are now completely accessible online. Following a successful migration process, those customers who previously received the Aequos database on CD, now receive either Aequos Engage, the IFA dedicated database or Aequos Online, which is more targeted at paraplanners and adviser platforms.
20 August	INCOME PROTECTION INSURANCE NEEDS A REVOLUTION
	Provider apathy is the biggest threat to the development of the income protection insurance market and the cause for the current sales slump, leading financial research company Defaqto warns in a new* report. It is urging providers to grasp opportunities for innovation and simplification. The report “Income Protection Insurance 2007– A time for action not words” calls on income protection insurers to step up to the plate and take definite action to develop the proposition into something that appeals more widely.
15 August	TIME TO START INHERITANCE TAX PLANNING
	UK house price inflation and increasing personal wealth are sucking more and more estates into the inheritance tax (IHT) net, warns leading financial research company Defaqto. In fact, 9.4 million individuals can expect to have an inheritance tax liability by the time they die, according to Scottish Widows research. UK residents are liable to pay inheritance tax at 40 per cent on their total worldwide assets, including the value of their property, which is in excess of £300,000 (the portion of your estate which is inheritance tax free in the 2007-08 tax year).
31 July	GARDEN CONTENTS FLOAT AWAY IN THE FLOODS - ARE YOU COVERED?
	Homeowners normally worry about garden furniture and plants being stolen, but this year they are more likely to be concerned about the contents of their garden floating away with the floods. Contents insurance is notoriously complex and policies vary enormously in what they do and do-not cover warns leading financial research company Defaqto.
30 July	DEFAQTO ADDS EQUITY RELEASE TO AEQUOS ENGAGE
	Defaqto announced today that it had added Equity Release information to Aequos Engage, the company’s product search and selection engine designed especially for IFAs. The move is partly in response to requests from customers to add the data to Aequos Engage and partly reflects Defaqto’s belief that equity release will become an increasingly important option in retirement planning. Having the information online with Aequos Engage will meet the growing interest in this sector from financial advisers across the country.
27 July	OFT COURT CASE MAY TAKE ‘YEARS’, SAYS DEFAQTO
	The Office of Fair Trading’s test case over overdraft charges may drag on for years with the “inevitable” result of the end of free banking, leading financial research company Defaqto believes. Defaqto’s Head of Banking David Black points to the length of OFT action against banks on overseas credit card transactions as a guide to how long the current case will take. The OFT first took action in June 2003 in that case and a final result is expected later this year after more than four years.
18 July	DEFAQTO ADVISES HOMEOWNERS TO CHECK POLICY QUALITY NOT JUST PRICE
	With the reported surge in applications for home insurance cover by households in areas potentially subject to flooding, Defaqto advises homeowners to check the quality of the cover on offer and not just settle for the cheapest quote. Up until now, it would have been very difficult for people to check out the quality of the cover on offer from the hundreds of policies that are now available.
9 July	DEFAQTO GROUP'S NEW COMPARISON TOOL ADDS EXTRA DIMENSION TO PRICE COMPARISON DEBATE
	Leading independent financial research company Defaqto today entered the debate about the value of using online price comparison sites to get the cheapest quote for insurance by announcing the launch of an online product quality comparison tool. The comparison system (known as Defaqto Compare!) is available free on the consumer portal website www.find.co.uk and covers car insurance, home buildings and home contents policies.
27 June	DEFAQTO WELCOMES TREASURY DECISION FOR FSA TO REGULATE ALL TRAVEL INSURANCE
	Defaqto welcomes the decision by the Treasury for the FSA to extend the regulation of travel insurance policies to those sold by tour operators and travel agents, which will come into force in January 2009. Defaqto could never see any good reason for not treating all travel insurance sales under the same regulatory regime. In terms of the detriment to the consumer of purchasing travel polices through tour operators and travel agents, Defaqto has for years consistently highlighted the additional cost involved, which in earlier years had been estimated to be as high as £250m.
26 June	QUARTERLY UPDATE OF FREE MULTI-MANAGER GUIDE FROM DEFAQTO
	Defaqto announced today that Issue 3 of “Blending Talents”, the free guide to multi-manager investing, with a complete set of updated statistics, is now available to be downloaded by financial advisers. With regulatory pressure continuing to challenge advisers’ ability to run investment portfolios on a day-to-day basis, outsourcing to a multi-manager is a popular option. Multi-manager funds under management now total in excess of £30 bn and further growth is anticipated.
21 June	OFFSHORE BOND MARKET POWERS AHEAD
	With rising house prices and growing personal wealth, more and more people are turning to offshore bonds as part of their inheritance tax planning, according to a new report from Defaqto. In its latest review of the offshore bond market for UK investors, the leading financial products research company says that the market grew by almost 50% to £7.4 billion in 2006, after a 60% rise in 2005, and this despite uncertainty over estate planning and trust legislation.
18 June	CONSUMERS NEED "CLARITY" ON CRITICAL ILLNESS POLICIES
	People buying critical illness insurance need to be better informed about the issue of medical disclosure before they apply, Defaqto, the leading financial research company, warns. It highlights the need in its report "Critical Illness in the UK 2007" for increased consumer education about the product which has been the subject of fierce criticism from consumer groups.
15 June	HOME INSURANCE MARKET OVERSUPPLIED
	Home insurers have benefited in recent times from a combination of strong economic performance and benign weather conditions, according to Defaqto, the financial research company. In its recent report into the UK Home Insurance Market, Defaqto says that this has attracted many new entrants and has in turn has made the market increasingly competitive. In the report Defaqto states that the rapid increase in the ability of consumers to compare policies via “web aggregators” – web sites dedicated to providing comparative quotes from insurers - has meant that price is becoming more dominant is product selection. This is compounded by insurers offering ever more attractive discounts or cash back deals to new customers, generally without any reduction in the cover offered.
14 June	CRITICAL ILLNESS INDUSTRY FAILING TO GAIN CONSUMER TRUST
	Progress in the past year by the critical illness industry to regain consumer trust has been undermined by bad claims publicity, ill-judged press reports and unhelpful comments from the Ombudsman, according to Defaqto, the financial research company. The industry had been expected to capitalise on the implementation of the ABI’s statement of best practice but, in the event not all insurers did so, leaving many advisers, and in turn their clients, inadequately informed about critical illness.
13 June	DEFAQTO ADDS WRAPS AND NEW FUND SUPERMARKET DATA TO AEQUOS ENGAGE
	Defaqto, the financial research company, has announced that it has added information on wraps and new fund supermarket data to Aequos Engage, its product research system for IFAs. This move is in response to adviser requests for this information to be available to them and continues the process of developing Aequos Engage as the market leading product research tool.
11 June	LOYAL CONSUMERS PENALISED BY HOME INSURANCE
	An ongoing price war in the home insurance market means that loyal customers are being penalised by providers, according to a new report from leading financial research company, Defaqto. In its report, ‘Home Insurance in the UK’ Defaqto reveals that rather than trying to extend cover and improve services to customers, many home insurance providers have launched a price war in an attempt to win business. Increasingly they are offering large discounts and incentives to new customers, while continuing to charge the same prices to loyal customers.
24 May	RETURN OF ANNUAL FEES IS ON THE CARDS, SAYS DEFAQTO
	Annual fees on credit cards are set to become the “norm” by the end of this decade as providers seek to rebuild profits, leading financial research company Defaqto predicts. But providers risk “significant contraction” in the UK credit card market as customers stung by annual fees switch to debit cards instead. Defaqto’s Head of Banking David Black believes more providers will follow the leads of LloydsTSB and Barclaycard. The latter is considering introducing an annual fee of up to £20 for customers who do not use their card regularly. Those who do not spend enough on the card or who have not used it for a year are likely to be affected.
14 May	TRAVEL INSURANCE IS “TOO CHEAP” TO BE ANY USE
	Consumers buying travel insurance have been warned not to base their decision just on the cost of the policy in a report published this week by Defaqto, the leading financial research company. The report ‘Travel Insurance in the UK – Cheaper is rarely better’, reveals that some policies are now “too cheap” to be able to offer adequate cover. Analysis of Defaqto’s Aequos database of 986 travel insurance policies found that there are 30 separate single trip policies that charge £10 or less for a week’s travel to Europe, with one quoting £5.49 per person. It urges consumers buying cheap policies to consider whether their insurer would be able to pay any claim made.
14 May	TRAVEL INSURANCE MISSES TERRORISM COVER
	A new report published this week by Defaqto warns that terrorism cover is at best “patchy”. Entitled ‘Travel Insurance in the UK – Cheaper is rarely better’, it warns that more than half of the 986 travel insurance policies analysed offered no terrorism cover and the remainder provide differing levels of cover. Defaqto, the leading financial research company, is urging consumers to check that their travel insurance policy offers adequate protection should people be caught up in a terrorist incident abroad. It cites a recent report by the US State Department which found that global fatalities resulting from terrorism rose by 40% during the past 12 months.
10 May	TRAVEL INSURERS FIGHT TO SURVIVE IN AN OVERCROWDED MARKET, SAYS DEFAQTO
	Price competition among travel insurers has not deterred new entrants from coming into the market, according to the financial research company, Defaqto. In its latest report, “Travel Insurance in the UK – Cheaper is rarely better”, Defaqto reveals that there are now over 175 separate distributors fighting for less than £700m of business and concludes the consequent downward pressure on premiums will inevitably mean that some companies will be forced out of the market.
03 May	DEFAQTO’S AEQUOS ENGAGE BEATS SALES TARGETS
	In the year since its launch, Defaqto’s Aequos Engage, the online product search engine specifically designed for IFAs covering life, pensions and investments, has comfortably exceeded its sales target of 1,000 new customers. Product enhancements since launch include addition of Defaqto’s QuantRater for investment information and further product additions are planned in the next few months to cover the Wrap and Equity Release markets.
19 April	EQUITY RELEASE MARKET HAS IMAGE PROBLEM, DEFAQTO WARNS
	The equity release market is suffering from a “chicken and egg” situation which is hitting growth at a time when the market should be set to boom, the leading financial services research company Defaqto warns in its latest report, “Equity Release in the UK 2007 – A retirement solution”. Negative comment on the market mainly because of historical mis-selling issues is deterring advisers and many big-name providers from launching into the market which in turn is putting off consumers.
19 April	EQUITY RELEASE NO LONGER A LAST RESORT
	IThe UK equity release market is entering a crucial stage in its development and will play a greater role in retirement planning, according to a new report from Defaqto 1. However, the leading financial research company believes that consumer choice and confidence in equity release products is still limited by a lack of household names entering the market.
10 April	DEFAQTO LAUNCHES NEW PRODUCT COMPARISON TOOL FOR HOME INSURANCE BUYERS
	In a move that will revolutionise the way insurance products are purchased, Defaqto today announced that it has developed a website comparison tool that enables product features of competitive products to be compared against each other. Hiscox is the first insurer to place the tool on its website. Known as Defaqto Compare!, this unique comparison tool works by comparing a defined range of features across the entire range of competitive products.
10 April	SIPPS PRICE WAR BREAKS OUT AS TIDE TURNS ON CHARGES
	Average set up fees for Self-Invested Personal Pensions (SIPPs) have been cut by up to 13 per cent in the past year as competition increases in the booming market following a period of unbridled success, the leading financial research company Defaqto says. And “downward pressure” on other charges including administration fees and investment transaction fees will continue as clients and their advisers focus on value for money in SIPPs.
5th April	SIPP MARKET FACES SERIOUS CHALLENGES IN 2007, SAYS DEFAQTO
	After some years of unbridled success, Sipp providers are about to face their first concerted period of serious challenges says Defaqto In its latest report, “ 1Sipps in the UK 2007 – Let battle commence“. New FSA regulations will ensure that everyone will be under extra pressure to deliver to the standards of the new regulations and this could prove too much of a burden for some providers and test their resolve to remain in the market.
29th March	THREATS TO FREE BANKING HAVE DELAYED OFT RULING, SAYS DEFAQTO
	The Office of Fair Trading’s delay on announcing limits on bank charges is an acknowledgement that a clampdown on fees could mean an end to free banking for all, leading financial research company Defaqto believes. Defaqto’s Head of Banking David Black considers that any cap on charges is now likely to be set higher than previous estimates of £12 for certain items. But he also believes banks could benefit from the introduction of a cap as it would limit the amounts of cash customers can claim as refunds. Currently the Financial Ombudsman Service is dealing with more than 1,000 inquiries a day about bank charges and individual banks are paying out compensation.
19th March	UPDATED MULTI-MANAGER GUIDE FREE FROM DEFAQTO
	Defaqto announced today that Issue 2 of “Blending Talents”, the free guide to multi-manager investing, is now available to be downloaded by financial advisers. This quarterly issue contains a new section on “News and Views” and a complete set of updated statistics. The guide sets out to explain both the different types of multi-manager and the benefits they seek to bring. Chief among these is that by skilfully blending fund holdings, success is potentially achievable through all phases of the economic cycle.
14th March	HOMEOWNERS COULD AVOID END OF FREE BANKING
	Offset and current account mortgages could offer an escape route for customers faced by current account charges, the leading financial services research company Defaqto believes. It has warned free banking could be over in two years but points out that offset and current account mortgages could be a way round the imposition of charges on accounts. Defaqto believes the ending of free banking could be a boost for the mortgages which combine a home loan with a bank account and potentially a range of other financial services products.
12th March	OFFSET MORTGAGES NEED GREATER EXPOSURE, SAYS DEFAQTO
	Offset and current account mortgages need to achieve greater publicity if they are to further establish themselves in the mainstream of mortgage products, says Defaqto in its recent report “ 1Offset and Current Account Mortgages – The way forward” While the report acknowledges that these mortgages have established themselves in certain niche areas, it suggests that they will have to widen their appeal if they are to achieve greater prominence.
7th March	IFA SATISFACTION WITH INVESTMENT PROVIDERS REVEALED IN NEW DEFAQTO REPORT
	Investment providers are meeting the service level requirements of IFAs in only four out of top ten most important service functions, a new report from leading financial research company Defaqto shows. The report 1 “Investment Service in the UK ” is based on the second detailed study by Defaqto into how IFAs rate provider service levels. Based on research among 500 IFAs 2, it identifies what IFAs consider the most important investment service functions from the 32 examined, as well as the industry’s preferred investment suppliers. The service functions are grouped into nine benchmark categories to assist in handling the mass of information produced from the market research study that underpins the report.
2nd March	EXTENDED TRIP POLICIES ADDED TO DEFAQTO'S TRAVEL INSURANCE DATABASE
	Defaqto announced today that it had added a new Extended Trip Travel insurance table to the Travel section of its Aequos Online database. The new table lists 155 policies from 59 primary and 19 “white-label” providers and is the most comprehensive analysis of the extended stay market currently available. It covers products suitable for backpackers, gap year and extended stay travellers. Within the database there is a full a full listing of policy features, product benefits, policy excesses as well as premiums for singles and couples, for 1 to 12 months, for trips to Europe, USA, Australia and New Zealand, as well as Worldwide for each policy listed. Also included within the database is the full policy wording for each product.
21st February	FREE BANKING COULD ‘DISAPPEAR WITHIN TWO YEARS’
	Free banking for all could disappear within two years as part of a backlash from banks against consumer and regulatory pressure on charges, leading financial research company Defaqto warns. Instead customers will either have to pay a monthly fee for a current account or face ‘pay as you go’ charges based on how much the account is used and for what it is used. Customers issuing and receiving large numbers of cheques would, for instance, pay more than those relying on electronic transactions which are cheaper for banks to process. Banks may mitigate some charges for customers who hold some of their other products. .
19th February	PPI MIS-SELLING COMPLAINTS ‘COULD RUN INTO TENS OF THOUSANDS’
	Payment protection insurance mis-selling complaints are set to rival the endowment mis-selling issue with numbers of complaints running into the tens of thousands, leading financial research company Defaqto says. But the regulatory clampdown on PPI could be bad news for consumers as banks and other lenders increase rates and charges on loans, credit cards and other products to compensate for the loss of income from PPI, Defaqto warns. Compulsory bank charges could even be imposed for some customers.
19th February	PPI INDUSTRY FACES DIFFICULT YEAR, SAYS DEFAQTO
	Lenders and intermediaries operating in the payment protection insurance industry are In for a very difficult year, according to Defaqto, the financial research company. In its report, “Payment Protection Insurance – 2007 – The year of reckoning” Defaqto paints a picture of an industry under siege from the Competition Commission, the FSA and a persistently negative consumer press. With annual PPI premiums totalling some £5.5bn (1), lenders are being faced with the challenge of handling what will inevitably be a decline in business this year.
16th February	BURNS-ANDERSON EMBRACES DEFAQTO'S AEQUOS ENGAGE
	Burns-Anderson announced today that it had taken on Defaqto’s Aequos Engage as its preferred product search engine. Defaqto’s Aequos Engage was launched in May last year and is specifically designed for use by IFAs. The product covers investment, pension and protection products and can be used online or downloaded for remote use. It also has a comprehensive compliance capability in-built and free training on the system is available to all adopters.
5th February	INVESTORS TURNING TO ‘WRAP’ PLATFORMS FOR GREATER TRANSPARENCY
	Investors are turning to ‘wrap platforms’ in greater numbers in a bid to take control of their investments, according to Defaqto. In a report published today*, the leading financial research company, says that ‘wraps’ or web-based portfolio administration services, are going to be the driving force behind the future of the investment industry having already grown by approximately 60% in 12 months. As investors become more sophisticated in their understanding of finance and their use of technology, Defaqto says that they will be eager to use wraps to monitor their investments online. It believes that clients welcome any facility that aggregate their assets and allows them to keep an eye on their affairs.
5th February	FULL SERVICE WRAPS FALLING BEHIND FUND SUPERMARKETS
	Companies offering full service wrap propositions and new market entrants are finding it difficult to make inroads into the dominating position of fund supermarkets, according to a new market report published today by Defaqto, the financial research company. The report, “Wraps- Advisers Hold the Key”, (1) indicates that wrap propositions have achieved a good level of awareness among financial advisers. This is confirmed by research conducted by Defaqto among 500 investment advisers which showed that 80% are already using platforms.
29th January	CCL SOFTWARE ADOPTS DEFAQTO'S AEQUOS ENGAGE
	CCL Software announces today that the latest release of its Simplicity software enables integration with Aequos Engage, Defaqto’s product research system for financial advisers. Defaqto’s Aequos Engage was launched in May last year and is specifically designed for use by IFAs. The product covers pension, protection and investment products and can be used online or downloaded for remote use. Aequos Engage now integrates with most back office CRM systems and web-based quotation portals.
11th January	PMI “FAILS TO EXCITE” CONSUMERS AND FINANCIAL ADVISERS
	Individual private medical insurance “fails to excite” both consumers and financial advisers despite the product’s “enormous potential”, Defaqto, the leading financial research company, says in a new report 1. In fact with five million pets insured in the UK and just one million individual PMI policies in force, it is outsold five to one by pet insurance. Consumers don’t want to buy because PMI is seen as merely augmenting the NHS which people are already paying for through taxes while many IFAs don’t understand the product.
9th January	SUMUS PLC CHOOSES DEFAQTO'S AEQUOS ENGAGE RESEARCH SYSTEM
	SUMUS plc (the AIM listed holding company of Falcon Group, FSAS and Financial Synergies) today announces that, following a detailed evaluation of systems currently available in the market, it will offer Defaqto’s Aequos Engage product search and selection tool to its members. Defaqto’s Aequos Engage is specifically designed for use by IFAs and covers pension, protection and investment products. It can be used online or downloaded for use at remote locations.
2nd January	BANKS STILL CHEAPEST FOR MORTGAGES
	Banks held on to the top spots as cheapest mortgage lenders in 2006 for existing borrowers, according to new research from Defaqto, the financial research company. It reveals that there was an annual difference of almost £500 between the cheapest and more expensive mortgages. Defaqto’s annual survey found that for standard variable rate mortgages or their equivalent, HSBC was the cheapest, followed by Intelligent Finance. But the research shows that the next three lenders in the top five were all building societies, Skipton, Nationwide and Britannia.
2nd January	ASSUREWEB AND DEFAQTO LINK UP TO HELP IFAs
	Research specialists Defaqto and provider-backed online portal Assureweb have entered into a strategic partnership that has developed a leading research, quotation and new business service for the intermediary market. The new solution significantly extends the quotation capability within Aequos Engage. It aims to provide a one-stop business process for financial advisers, by combining front and back-office procedures with product research, obtaining quotes and submitting new business applications. This powerful new integration comes at a time when more than two in three advisers (69 per cent) complain that they waste time re-keying data, as the systems they use, such as provider websites, portals and the ‘fact-find process’, are not joined up.
19th December	IFA SATISFACTION WITH PROTECTION PROVIDERS REVEALED IN NEW DEFAQTO REPORT
	Protection providers are meeting the service level requirements of IFAs in only 3 out of top ten most important service functions, a new report from leading financial research company Defaqto shows. The report “Protection Service in the UK 1 “ is the first protection study from Defaqto into how IFAs rate provider service levels. Based on research among 500 IFAs 2, it identifies what IFAs consider the most important service functions from the 39 examined, as well as what they considered to be the industry’s preferred protection suppliers. The service functions are grouped into nine benchmark categories to assist in handling the mass of information produced from the market research study that underpins the report.
16th December	LOST IN TRANSLATION - PENSION INDUSTRY MUST SIMPLIFY TERMINOLOGY, SAYS DEFAQTO
	Consumer research carried out for The Pensions Report 1, published by Defaqto, strongly suggested that the language used by the pensions industry leaves consumers cold and apprehensive. When taken together with the fact that the word ‘pension’ is itself tarnished in the public eye, rebuilding faith in pension savings should be at the top of the industry’s agenda. Matt Ward, Defaqto’s Head of Pensions & Wealth Management believes that in the short-term the industry should start by ‘modernising’ pension terminology. Ward states, “Enhanced educational facilities and programmes will play a key role in empowering consumers to make informed financial decisions over the long-term, but the industry can achieve quick wins by simply improving the language used to convey pensions information.
13th December	DEFAQTO ADDS INSIGHT TEMPLATES TO AEQUOS ENGAGE
	Defaqto has added a new facility called Insight Templates to its IFA search engine Aequos Engage. In a move to enable IFAs to identify only those products that meet certain key product standards, Defaqto has developed a series of templates relevant to specified product areas. The templates were designed by product specialists in the company’s Insight Team and cover investment, pension and protection products. Insight Templates work by filtering out all products from providers that do not meet a sufficiently high level of financial strength. After that, there are a number of pre-set features, different for each product type, that IFAs must decide at what quality level to set the fineness of the filter. For example, the IFA may wish to screen out all investments that require a minimum of £25,000 as their client has only £10,000 to invest.
12th December	NEW MULTI-MANAGER GUIDE FREE FROM DEFAQTO
	The first issue of a new free guide to multi-manager investment entitled “Blending Talents” has been published by Defaqto, the leading financial information company. Aimed at financial advisers, the guide sets out to explain this investment vehicle by describing the different types of multi-manager and the benefits they seek to bring. Chief among these is that the blending of holdings are constructed in such a way that success is achieved through all phases of the economic cycle. The guide also examines how the different types of multi-manager can impact on advisers, their clients and their businesses.
7th December	DEFAQTO PUBLISHES HEALTH INSURANCE GUIDE FOR SMEs
	Defaqto, the financial research company, has published a guide 1 to help Small and Medium Enterprises (SME’s) understand the complex area of protecting and promoting employee health. Entitled “An Investment not an Expense: Health Insurance Solutions for Small and Medium Enterprises”, the guide will help HR and Personnel managers understand how health cover and the benefits offered can impact positively on their firms. Defaqto’s guide looks at group private medical insurance and group hospital cash plans. It explains the composition of each type of cover and how understanding the varying options available can help ensure the correct policy type is selected for the individual organisation.
6th December	MARKET GROWTH RESTRAINED BY CHANGING PET OWNERSHIP PATTERNS
	In its latest report, Pet Insurance in the UK – 2006, Defaqto identifies how changing social patterns are affecting dog ownership and consequently sales of pet insurance policies. According to the report, the pet insurance market is valued at around £275 million per year, making it the smallest market by value of any major insurance product group. However, with only 17% of cats and 32% 1 of dog being insured, the potential market would exceed £1 billion if all pets were insured. In the mid 1990s the number of pet cats overtook the number of pet dogs, partly as a result of changing lifestyles. With more single person households and longer working hours, fewer people have the time to look after a dog and with the dog population somewhat static, the real growth opportunities lie in the cat insurance market.
6th December	PET INSURANCE: MORE POLICIES BUT LITTLE MORE CHOICE
	Despite an increase in the number of pet insurance policies on the market, there has been little increase in consumer choice, says Defaqto. In its latest report, Pet Insurance in the UK – 2006, the company identifies over 250 differently branded cat and dog policies from around 75 distributors. But with more than half of these “white-label” products, consumer choice is much less extensive than would appear. Indeed, 48 out of the 75 distributor products are underwritten by just four insurers. The report reveals a £275 million market with considerable potential for new sales, as just 17% of cats and 32% of dogs have insurance 1. Most of the drive for new sales is coming from the supermarkets and large retailers who see their current customer base as a good source of potential leads.
20th November	IN PARTNERSHIP ADOPTS DEFAQTO'S AEQUOS ENGAGE
	IN Partnership today announces that it will provide Defaqto’s Aequos Engage product selection tool as part of its partnership package. Following a thorough review of all aspects of its offerings and in keeping with its commitment to provide its partners with the highest level of service, IN Partnership has decided to move away from its long-standing supplier in favour of Defaqto. Defaqto’s Aequos Engage was launched earlier this year and is specifically designed for use by IFAs. The product covers pension, protection and investment products can be used online or downloaded for remote use. It also has the capability of seamless integration with back office CRM systems and web-based quotation portals.
20th November	PROBLEM CUSTOMERS "WILL FACE CREDIT CARD RATE RISES"
	Credit card customers who persistently pay late or go over their limit could face increases in their interest rate charges as companies react to the regulatory squeeze on the industry, the leading financial services research company Defaqto warns. And it also believes annual fees for credit cards are likely to be imposed. The new tough tactics from credit card companies come in the wake of the Office of Fair Trading forcing firms to cut so-called “delinquent charges” to a capped £12.  This is hitting corporate profits and obliging credit card providers to look at alternative techniques to protect their margins, such as higher interest rates for particular customers. Card firms are also facing further regulatory action over costly Payment Protection Insurance.  Defaqto estimates that the cost to consumers wanting to receive £100 of monthly credit card protection varies from £5 to a massive £28.33. And interchange fees charged on credit card transactions are also being looked at by the European Commission.
15th November	FIRST DIRECT MOVE IS “STEP TOWARDS END OF FREE BANKING ”
	First Direct’s announcement that customers who do not deposit at least £1,500 a month or maintain a current account balance of £1,500 a month will face fees of £10 a month is “another step in the seemingly inevitable move” towards the end of free banking, Defaqto, the leading financial services research company, believes. First Direct is changing the terms on its current account from 1 st February 2007 which includes amending overdraft fees and introducing a tiered fee structure based on the value of unpaid defaults. David Black, Defaqto’s Head of Banking and author of “Current Account Report: Paying the Price” says: “To date failure to deposit set monthly minimum amounts into current accounts has largely been deterred by cutting credit interest rates or, in one case, increasing overdraft rates. This is the first time a monthly fee has been proposed.
14th November	SERVICE PROVIDERS COMBINE TO HELP IFAS
	In an unusual move, three system providers have joined forces to help IFAs exploit the opportunities that exist to benefit from the demand for high quality financial advice. Plum Software, Taxbriefs and Defaqto are offering a free seminar to IFAs to help them understand the current business environment and how this is likely to develop in the near future. Each provider will offer suggestions from their own perspective as to how IFAs can utilise new technology to ensure that they deliver a more comprehensive and cost effective service to their clients. With the growing complexity and volume of financial products on offer, this need has never been greater.
30th October	DRIVERS SHOULD STEER CLEAR OF MOTOR INSURANCE PREMIUM RISES
	Motorists faced with steep rises in their insurance premiums will still be able to find better value deals elsewhere, a new report from leading financial research company Defaqto predicts. And firms trying to both raise premiums and maintain market share will find it “almost impossible”. Defaqto points to the fact that two-thirds of insurers who allow customers to buy on the internet offer discounts for doing so. Many firms also offer cashback deals through aggregator websites such as edealsUK and Quidco with some insurers offering as much as £110. The average cashback on Quidco is £54 and £20 on edealsUK.
12th October	NEW DEFAQTO REPORT REFLECTS URGENT NEED FOR CHANGE IN FOCUS WITHIN UK PENSIONS INDUSTRY
	The Pensions Report, launched today in London, highlights the drivers for wholesale change in the UK pensions industry before pointing to the requisite survival strategies and market opportunities for those seeking to prosper in the new look retail market. Dr Ros Altmann, respected adviser to the pensions industry on policy and strategy, was guest speaker at the launch event. Her speech underlined the troubled background to the pensions industry and her foreword for The Pensions Report stated, “This excellent report provides a timely reminder of just how serious the UK pensions crisis really is. The comprehensive survey evidence confirms what most people in the industry have been seeing for years now – that most people have lost faith in investing in pensions.”
3rd October	INCOME PROTECTION INSURANCE SUFFERS FROM “MUTUAL MISTRUST”
	Sales of income protection insurance are suffering from “mutual mistrust” with consumers not trusting insurers to pay out and underwriters believing consumers prefer being ill to working, Defaqto, the leading financial research company, warns in a new* report. With a working population of up to 30 million, there’s a phenomenal potential market for income protection insurance. Yet recent Swiss Re figures show just 147,285 policies were sold in 2005. Critical illness sold four times as many polices and mortgage payment protection sold five-and-a-half times as many . The Defaqto report “Income Protection Insurance – October ” pins the blame on “mutual mistrust” and proposes a six-point plan to revitalise the market without the need for radical action.
18th September	BANKS FIGHT FOR CURRENT ACCOUNT CUSTOMERS, SAYS DEFAQTO REPORT
	A new report from Defaqto into the current account market identifies the pressures on the banks to maintain or extend their market shares. Defaqto’s Current Account Report indicates that banks’ incomes are likely to be hit in the future by a probable cap on delinquent charges and increased competition, and are putting in place strategies to retain and attract new customers. In a fiercely competitive market, a new emphasis is being placed on packaged and premium accounts which offer the customer a wide range of features. These are aimed at locking in their best customers, upgrading others and attracting switchers” from other banks. By locking customers into these accounts, banks can attempt to cross-sell them their insurance and investment products.
12th September	BANKS INCREASE CHARGES BY UP TO 20 PER CENT IN THREE YEARS
	Banks and building societies have increased charges by up to 20 per cent on average in the past three years, Defaqto, the leading financial research company, reveals in a new* report. Average penalties for bounced cheques, unpaid standing orders or direct debits are now more than £30 compared to around £27 in August 2003. Defaqto argues that customers who pay fees for unauthorised overdrafts at an estimated annual cost of £3 billion are “effectively subsidising” those who do not incur charges and any Office of Fair Trading action to cut the penalties could mean all customers suffering.
7th September	IFAs RATED FOR IMPARTIAL ADVICE AND ACCESS TO WIDER RANGE OF PRODUCTS, SAYS DEFAQTO
	Defaqto, the leading financial services research company, today welcomed an investigation by Which? showing almost half of tied advisers misled researchers about the range of product choice they offer. The Which? investigation found 48 per cent of tied advisers working mainly for banks and building societies suggested to customers they could offer more product choice than they do. Defaqto’s own research* shows the main reasons for people visiting IFAs were to obtain impartial advice and to have access to a wider range of financial products and it also revealed that 6.2 million people plan to visit an IFA over the next 12 months.
6th September	PAYMENT PROTECTION INSURANCE GUIDE HELPS CONSUMERS, SAYS DEFAQTO
	The news that the FSA has fined a mortgage firm £56,000 for selling Payment Protection Insurance (PPI) policies that may not have been suitable for their customers or on which they may not have been able to claim, has once again highlighted the need for customers to be careful when buying this type of insurance. Covering mainly insurance for mortgages, credit cards and loans, the cost of PPI policies can vary significantly between these three product groups. In addition, costs differ considerably between policies for similar cover within each group, particularly for personal loans.
17th August	BANKHALL EXTENDS PARTNERSHIP WITH DEFAQTO FOR AEQUOS
	Bankhall and Defaqto have extended their contract for the supply of the full Aequos package to Bankhall members. All Bankhall member firms receive one licence as part of their membership for either the comprehensive Aequos Online programme or the recently launched Aequos Engage; giving them real time access to many products from a wide range of key product providers. Members can purchase additional licences from a menu of supplementary products and services provided by Bankhall.
17th August	GOVERNMENT RESPONSIBLE FOR A-DAY DIFFICULTIES, ACCORDING TO DEFAQTO RESEARCH
	Research by Defaqto, ahead of the publication of its Pensions Report in October, found that most financial advisers felt neither they nor the providers themselves were able to prepare adequately for A-Day because the Government continued to change the rules up to the last minute. According to Defaqto, this overwhelming sentiment was expressed regardless of whether the adviser registered positive or negative feedback for provider preparedness and support at A-Day. The research is part of an extensive study conducted with 500 advisers for the Pensions Report.
10th August	AIR TRAVELLERS IN FOR NASTY SURPRISES FOLLOWING CRITICAL THREAT LEVEL ALERT
	Today disruption to air travel caused by the government’s raising of the threat level to “critical” is going to cause some nasty surprises to travellers if they need to claim on their travel insurance says Defaqto, the financial research company. While some policies cover travellers for loss, damage or injury caused by terrorism, this will not apply because there has been no terrorist action, just the threat of terrorism.