JPMorgan Chase poised for full Cazenove takeover - papers

JPMorgan Chase is set to take full ownership of Cazenove, the 190 year old stockbroker, in a £940m deal.

Huge pay-outs for some of the City's leading financiers are expected as a result of the move.

The US investment bank is in advanced talks to buy for 500p-525p per share the 50% of a joint venture with the stockbroker it does not already own, reports the Financial Times.

The price is more than double the most recent quoted 245p in April this year.

Senior figures at Cazenove, as well as chairman David Mayhew who has been with the group for four decades, are set to receive the largest pay-out of £18m-£19m.

Mr Mayhew owned more than 3.6m ordinary shares and another 400,000 in restricted shares at the end of 2008, according to public filings.

The buy-out will mark the culmination of the tie-up agreed in November 2004 as a way for Cazenove and JPMorgan to expand into new business areas.

Cazenove was keen to broaden its reach and appeal as a discreet London stockbroking firm, while JPMorgan wanted to strengthen its presence in UK corporate broking without the expense and risk of a full take-over.

Buying the remainder of Cazenove will allow JPMorgan to cement its position in Europe, an increasingly important source of revenue for the bank. Full story...

FUND MANAGERS are refusing to allow the over-fifties to top up Isas following a rule change last month.

SVM Asset Management, RIT Capital Partners and Olim have told investors they will not be able to enjoy the higher Isa limits. Legg Mason and Liontrust are also refusing to implement the changes, reports the Sunday Times.

From October 6, over 50s were allowed £3,000 more on their annual Isa limit, bringing it to £10,200. The new limit will apply to everyone from April.

Yet a Sunday Times survey suggests some fund managers will not allow the additional sum until the start of the new tax year, within the rules laid down by HM Revenue & Customs.

Fidelity Funds Network, a fund supermarket, says the new limit had led to a fourfold increase in Isa sales compared with its usually busiest month of March.

RIT says: "The FSA has confirmed it is a commercial decision for Isa providers whether they permit eligible customers to subscribe up to the higher Isa limits from October 6, 2009.

"RIT concluded that this expenditure for the benefit of a small number of investors was not in the best interests of all shareholders in RIT Capital Partners plc." Full story..

CONSUMERS WILL get lessons in financial awareness funded by the banks in plans to be set out in the Queen's Speech this week.

A new financial education agency will offer consumers personal finance advice on areas including how to calculate compound interest rates and understand mortgage deals, reports the Telegraph.

A levy imposed on the banking industry will fund the agency as part of the Financial Services Bill which also attempts to tighten bankers' bonuses.

The FSA is currently in charge of financial education but the job will now be done by a new independent Consumer Education Agency.

The fee banks already pay to the FSA to fund its work is now likely to increase for the new education body for adults.

Financial education for children will remain the responsibility of schools. Full story...

ALISTAIR DARLING will be urged today by MPs to put the brakes on "overambitious" plans to toughen pan-European regulation of the financial sector, amid fears that the project is being rushed through.

The chancellor is under pressure to do a deal with European finance ministers at their next meeting on December 2 to create the new financial architecture, intended to beef up cross-border regulation.

But the Commons Treasury committee says it has identified "serious problems" with the plans to create a European Systemic Risk Board, which would focus on preventing bubbles and other macroeconomic dangers, as well as three pan-European agencies to regulate banks, insurers and securities firms.

The committee's report urges Mr Darling and other EU ministers to hold back before agreeing the draft legislation. Full story...