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News in digestible form
Welcome to the October edition of our e-newsletter, BSA Newsbite. A monthly online update, Newsbite gives you the latest news, views and stats from the building society sector.
The Autumn edition of Society Matters is now available. This edition focuses on societies in the heart of their communities. To request a postal copy and to be added to the distribution list click here or to download a copy from the BSA website click here
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Level playing field on ISA transfers is needed
Research conducted on behalf of the BSA by YouGov shows that 79% of stocks and shares ISA holders would consider transferring their ISA to a cash ISA if they were allowed to. Currently, disparity in the ISA regulations means this is not possible - only transfers from cash to stocks and shares ISAs are permitted.
The two most common reasons to switch from stocks and shares to cash ISAs are to earn a better return and to change the level of risk savings are exposed to. These reasons clearly reflect current conditions in stock markets, with stocks & shares ISA holders attracted by the better returns currently offered by cash ISAs, as well as the lower risk.
Commenting on the findings, Adrian Coles, Director-General of the BSA, said:
The current market conditions make it even more important that the inequality in ISA transfer rules are addressed .The current rules that allow only transfers from cash to stocks and shares ISAs – but not the other way round - meaning those savers with stock and shares ISAs who want to reduce the risk to their savings or earn a better return from cash, can’t do so without losing their tax exemption. We believe the Government should introduce a level playing field on transfers and we will be urging that they announce this change in the forthcoming Pre-Budget Report.”
Read the full article
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BSA Housing and Mortgage Events
The BSA is holding two events looking at the housing and mortgage markets in December.
The Mortgage of 2020
On 3 December, the BSA is teaming up with the Centre for the Study of Financial Innovation (CSFI) to hold a roundtable looking at the mortgage of 2020. Peter Williams will be outlining the first findings of some research he is undertaking for the BSA on the mortgage of 2020. Matthew Bullock, Chief Executive of Norwich and Peterborough Building Society, and Ray Boulger, from John Charcol, will be giving their reactions to Peter’s findings.
UK Housing Review 2009
On 10 December, the launch of the UK Housing Review 2009 is taking place at 10:30am at the BSA offices in London. The Review provides an unrivalled wealth of data on housing in the UK, and the launch will feature presentations from its author, Steve Wilcox, Paul Field from the West Bromwich Building Society, Michael Ball from the University of Reading, Richard Hill from the Housing Corporation and Richard Capie from the Chartered Institute of Housing.
Read the full article
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BSA Annual Lecture – Now is the time to Beat the Banks
Speaking at the BSA Annual Lecture, sponsored by Collins Stewart ISTC, Paul Lewis, freelance financial journalist, said now was the time for mutuals to "beat the banks".
He noted that the way to beat them was not to join them. Looking at the demutualised institutions, Lewis observed that, on average, they had survived for just 8.76 years since they demutualised.
He challenged building societies to act on mortgages to offer simple honest products. The reduction in the number of mortgages on offer, he said, was a good thing – but the 3,000 still on offer are "too much for a human mind to comprehend".
He concluded by saying societies should scrap arrangement fees on mortgages and sell them as "no interest in advance… a return to Quaker banking".
Paul Lewis’ full speech can be viewed on the BSA website here.
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And finally ...
If Newsbite has been forwarded to you by a colleague and you would like to get your own copy direct, or if you would like to unsubscribe just e-mail the Media Centre.
For feedback, opinions and information, contact Newsbite’s editor Rachel Le Brocq.
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Don't forget the Mutuals Forum 2008
Taking place on 4 December 2008 at the Emirates Stadium, London, this event has been designed for mutuals from each wing of the sector. The day include presentations on the state of the sector, selling the benefits of mutuality, launch of mutuals year book and parliamentary question time.
For more information download the brochure and booking form here and full programme here
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