Pension Data Sales Claims Trigger Inquiry

An investigation has been launched by the data watchdog into claims that details of milllions of people's pensions are being sold to cold-calling firms and fraudsters.

The Information Commissioner's Office (ICO) has described the revelations as "very worrying" and said it would be speaking to regulators and police.

The allegations have reinforced concerns about an upsurge in fraud as changes are introduced giving people access to their entire pension pots.

From 6 April, people can cash in their pension savings when they retire, rather than purchase an annuity.

Details of people's salaries, the value of their investments and the size of their pensions are being sold for as little as 5p without their consent, according to the Daily Mail.

Video: March 2014: Pensions Overhaul

The paper said its undercover reporters were sold information about the pensions of 15,000 people without any checks being made on who they were and what they would do with the data.

The ICO has already warned the pension reforms being brought in could lead to more people being scammed.

Steve Eckersley, the head of enforcement at the ICO, said: "It suggests a frequent disregard of laws that are in place specifically to protect consumers. We will be launching an investigation immediately.

"We're aware of allegations raised against several companies involved in the cold-calling sector, and will be making inquiries to establish whether there have been any breaches of the Data Protection Act or Privacy and Electronic Communications Regulations."

The ICO has the power to slap companies with fines of up to £500,000 for the most serious breaches of the Data Protection Act and can pursue criminal prosecutions around unlawfully obtaining or accessing personal data.

Mr Eckersley added: "The information we've been shown supports the work we've been doing to target the shady industry that operates behind the nuisance of cold calls and spam texts.

"We're already aware of the potential for a huge spike in the number of scam texts and calls linked to pensions when the law changes in April, and have already taken action against a company that was sending out misleading messages.

"What we've seen here confirms those fears. Personal data is such a valuable asset, particularly financial information.

"The worst case scenario here is this information getting into the wrong hands and being used to target individuals at a critical point in their financial lives."

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B&Q Owner To Shut 60 Stores Amid Profit Slump

The owner of B&Q has announced plans to close 60 DIY stores over the next two years.

The move comes amid a 7.5% drop in adjusted pre-tax profit of £675m for Kingfisher, a chain that operates in the UK, Ireland and mainland Europe.

Releasing its figures for the full-year ending 31 January, it said total sales were also down by 1.4%, to £10.96bn.

Kingfisher told Sky News the closures would affect poor-performing stores in the UK and Ireland and added that around 600 jobs are at risk.

It expects natural attrition to account for most of the positions, with other staff being reassigned to different parts of the group, including its builders' supplies chain Screwfix.

Video: B&Q Boss On Its Booming Business

"Kingfisher has said for some time that B&Q UK and Ireland can adequately meet local customer needs from fewer stores and that some of the store should be smaller," it said.

Overall, its UK and Ireland operations saw sales up 5.5% in the year to £4.6bn, achieving a  retail profit of £276m.

More than half of the total sales for the London-listed firm come from its businesses on the Continent.

On Monday a planned £200m deal by the company to buy the French DIY chain Mr Bricolage collapsed.

The market responded positively to the development with shares in Kingfisher rising by 2%.

Shares were also up more than 4% in early trading after Tuesday's announcement.

Kingfisher had been looking to strengthen its position in France, where it already owns Castorama and Brico Depot.

The closures are the first major attempt at reorganisation by Veronique Laury, who took over as CEO from Sir Ian Cheshire last September.

Ms Laury was previously the boss of Castorama.

She said the entire group would undergo a strategic shake-up, with fewer product lines, greater IT integration and executive refocus.

Two years ago B&Q saw a massive sales slump which it blamed on poor weather.

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Stars Launch Jay Z's Music Streaming Service

Rapper Jay Z has officially launched his new music streaming service, named Tidal, with the help of some of the biggest names in entertainment.

Madonna, Rihanna, Beyonce, Kanye West and Alicia Keys are among the A-list celebrities who co-own Jay Z's new venture.

Tidal is being billed as the first artist-owned platform for music and video.

It hopes to address musicians' concerns that they are losing out financially in an age of music downloads and booming streaming services.

Speaking at the launch event in New York, Keys said Tidal aims to "forever change the course of music history".

Video: Stars Back New Streaming Service

The co-owners - who also include Daft Punk and Jack White - lined up on stage to sign a declaration of a "whole new era".

"Our mission goes beyond commerce, it goes beyond technology. Our intent is to preserve music's importance in our lives," Keys said.

"Music is the language of love, of laughter, of heartbreak, of mystery. It's the world's true, true, without question, universal language."

Tidal is likely to face tough competition from existing streaming services like Spotify. Both Spotify and Tidal are membership-based services.

For $19.99 (£13.50) a month, subscribers are able to access to millions of songs and videos which users can stream or listen to offline.

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1. Gallery: Jay Z And His Business Empire

   In 1996 Jay Z launched record label, Roc-A-Fella records, with close friends Damon Dash and Kareem Burke

Roc-A-Fella went on to great success and was sold to parent label Def Jam in 2004 for $10 million. Jay Z stayed on as Def Jam CEO, signing Rihanna and Ne-Yo

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Fashion Firms Join Up To Fight New Luxury Tech

Two European online fashion retailers are joining forces to fight back against tech giants encroaching on the luxury sector.

London-based Net-a-Porter and Italian rival Yoox have agreed to create a joint venture, with a combined value of around £1.5bn.

Swiss-based Richemont owns Net-a-Porter and is the company behind a swathe of famous luxury brands, including Cartier, Van Cleef & Arpel, Jaeger-LeCoultre, Montblanc, Alfred Dunhill and Chloe.

Richemont also produces luxury items under third party designer brand names, including Ralph Lauren Watches.

In a statement its chairman made clear the threat facing the luxury sector as tech firms improve the sophistication of their offerings, especially in the watch sector.

"Established business models are being increasingly disrupted by the technological giants," Johann Rupert said.

"It is with this in mind that we believe it is important to increase leadership and size to protect the uniqueness of the luxury industry."

Mr Rupert added: "The merger of the two leaders will further enhance an independent, neutral platform for a sophisticated clientele looking for luxury brands."

London's Net-a-Porter and Italy's Yoox have agreed a deal

Apple is seen by tech analysts as the key competitor making a move on the sector and is about to launch its smart watch, with eight versions priced at £8,000 or more.

The most expensive model is the 38mm 18-carat yellow gold version, which costs £13,500.

Video: Apple Watch: Main Features

"The jury is still out on how how many people will spend this much on a wrist computer prototype, with a limited battery life and small screen," BNP Paribas managing director for luxury goods, luca Solca, told Sky News.

"Other tech firms are waiting to see how successful it is, and meanwhile luxury goods firms realise they must have a digital presence."

Apple is known for its sophisticated products and last year Burberry boss Angela Ahrendts left the luxury designer to become its senior vice president for retail.

Video: Does The Phone Live Up To The Hype?

Yoox is listed in Milan and has operations in Europe, the US and Asia and delivers to more than 100 countries.

The new European equal-share joint venture requires shareholder approval and will be known as Yoox Net-a-Porter.

Richemont will only have 25% of the voting rights at first but after a three-year tie-in period is expected to help raise up to €200m (£145m) to help expand the company.

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Bank Of England Reveals New Lender Stress Test

The UK's biggest banks will have to show how they would cope with a 1930s-style global economic slump under a new doomsday scenario.

The second annual stress test of the financial system set by the Bank of England (BoE) aims to act as a health check on Britain's seven biggest lenders.

This year's test will focus on international risks rather than the most recent assessment in December, which had a more domestic focus.

It includes a dramatic slump in Chinese growth and a eurozone recession.

The test will assess the impact on the banks' balance sheets and resilience in the face of severe economic stress.

The lenders to come under the spotlight are Standard Chartered, HSBC, Barclays, Lloyds, Nationwide, Royal Bank of Scotland, and Santander UK.

The Co-operative Bank, which failed last year's test and has been taking remedial steps by speeding up the sale of its loan book, will not be included.

The BoE said the Co-operative is now smaller and its status was unlikely to have a "material impact on the resilience of the financial system".

BoE Governor Mark Carney said: "Last year's tests demonstrated how much stronger the core of the UK financial system has become since the financial crisis.

"The results showed that the post-crisis reforms have put the UK banking system on a stronger footing and made it better able to support the real economy even in the face of a major domestic shock.

"This year's test will have a different focus and is equally important.

"By assessing the resilience of the UK banking system against a major external shock, we will improve further our ability to identify vulnerabilities and we will ensure that banks have plans in place to address a wider range of possible stresses."

Those lenders found not to have a big enough capital to loan margin will be required to bolster their financial position.

Results of the stress test will be published in December.

The Bank stressed the scenario it set out was not a forecast of expected conditions in the UK or other markets.

While only the Co-op failed last year's test, concerns were also raised about state-backed Lloyds and RBS.

However, improvements and changes to their plans during 2014 meant they passed the check-up.

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Federal Agents Charged Over Bitcoin Fraud

By Sky News US Team

Two former federal agents have been charged with bitcoin money laundering, wire fraud and other offences, the US Justice Department says.

Former Drug Enforcement Administration (DEA) agent Carl Force and ex-Secret Service agent Shaun Bridges were due to appear before a judge on Monday.

Both are accused of stealing the digital currency during the investigation into the black market website Silk Road.

Silk Road was a dark web internet marketplace used for drugs

The Justice Department said Force developed online personas and engaged in illegal activities including "complex Bitcoin transactions to steal from the government and the targets of the investigation".

Bridges, meanwhile, allegedly diverted to his personal account more than $800,000 (£540,000) in digital currency that he controlled during the probe.

Video: Silk Road Kingpin Conviction

He then placed the assets into an account at the now-defunct digital currency exchange Mt Gox, according to a criminal complaint.

Force allegedly invested in and worked for a digital currency exchange company while still working for the DEA, the Justice Department said.

He directed the exchange to freeze a customer's account and had the funds transferred to his personal account, the complaint said.

Force, 46, was arrested in Baltimore on Friday, and Bridges, 32, surrendered himself on Monday.

Silk Road kingpin Ross Ulbricht was found guilty in February of running the multi-million dollar dark net drugs marketplace.

The 30-year-old, who prosecutors said ran the site under the username Dread Pirate Roberts, faces a possible life sentence after being convicted on all seven counts he faced.

Ulbricht's defence have claimed he was a naive fall-guy who passed the site to a mysterious criminal when it got out of hand.

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Honda Makes Swindon Global Hub For Civic Cars

Honda is to invest £200m in its facilities at Swindon to make it a global hub for the next generation of Civic cars.

The company said the production plant will make the five-door model for UK, Europe and "key global markets".

The carmaker added that since 1985 it has invested £2.2bn in engine and car manufacturing facilities at the site.

Engines were first produced at the Swindon plant in 1989 and cars started to roll off the line in 1992.

The facility currently has an annual production capacity of 250,000 vehicles a year.

Although the Swindon facility will produce the Civic model that goes on sale later this year, it will lose the ability to produce the CR-V compact crossover - which will be made in Ontario, Canada.

Honda UK director Jason Smith said: "As a global production facility for the Civic five-door model we look forward to making the most of the opportunity to export this model not only to our European customers, but also to key global markets."

UK trade body the Society of Motor Manufacturers & Traders said that including the Honda pledge, more than £1bn of investments have been promised by carmakers in the last week.

But is has been a rocky road for Honda at Swindon recently.

Last year more than 300 jobs were under threat as the manufacturer cut production.

It wanted to reduce workflow from three daily shifts to two, and blamed poor sales growth outside the UK - particularly in Europe.

At the time the Unite union pledged to fight any job losses imposed by the firm.

The new facility at Swindon is expected to employ state-of-the-art technology to improve economies of scale.

Mr Smith added that Honda was "demonstrating its long-term commitment to manufacturing in the UK and Europe".

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M&G Fund Manager Scoops £15m-Plus Pay Deal

By Mark Kleinman, City Editor

A top fund manager at M&G Investments has scooped a £15m-plus pay deal for the second consecutive year, cementing his status as one of the highest-paid executives at a London-listed company.

Sky News can reveal that Richard Woolnough, who oversees nearly £35bn of clients' money at the fund management arm of Prudential, was the mystery recipient of the bumper package.

Prudential's annual report, released on Tuesday, disclosed that an individual received between £15.3m and £15.4m but declined to name the person because they do not sit on the company's main board.

However, sources confirmed that Mr Woolnough was the unidentified employee, following the achievement of performance metrics last year which included the M&G Optimal Income Fund being Europe's best-selling mutual fund.

The £15m-plus award comes on top of a £17.5m payout to Mr Woolnough in 2013, and places the bond manager firmly among the City's top-paid money managers.

The timing of the pay award may be sensitive for Prudential, given the proximity of May's General Election.

Fund managers' pay deals, and the means through which they earn them, have become an increasingly visible target for pay campaigners, with the Institute of Directors calling in recent months for a more detailed investigation of the sector.

People familiar with the situation said that Mr Woolnough's pay award was "based on performance", pointing to annualised returns for the Optimal Income Fund of 8.19% since its launch in 2006, against a sector average outline by the Investment Association of 4.7%.

Mr Woolnough's other funds include the M&G Strategic Corporate Bond Fund and M&G Corporate Bond Fund, which manage £10.2bn fund in total.

One of the City's top fund managers, Mr Woolnough has a low profile outside the UK financial sector, having joined M&G after stints at Lloyds Merchant Bank, the Italian insurer Assicurazioni Generali, and SG Warburg.

In 1995, he became a fund manager at Old Mutual, where he also spent almost ten years.

Mr Woolnough's Optimal Income Fund launched in 2006 to provide investors with an alternative to traditional corporate bond funds.

It has a mandate to hold 50% of its assets in bonds, but is more flexible than many competitors and has almost trebled during the last two-and-a-half years.

That rapid growth is partly explained by investors' search for "safe" income when interest rates have been at historic lows.

Under disclosure rules for public companies, Prudential, which owns M&G, has to disclose by name the remuneration packages awarded to board members.

The company is in the process of seeking approval from regulators to name Mike Wells, the head of its US operations, as its new group chief executive.

The insurer's annual report also disclosed that both Mr Wells and Tidjane Thiam, who is stepping down as its chief executive to run Credit Suisse, the Swiss banking group, were paid more than £11m last year.

Like his board colleagues, the vast majority of Mr Woolnough's pay is understood to be in the form of Prudential shares and deferred for several years.

Prudential and M&G both declined to comment.

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UK Economic Growth Almost Tops 2006 Figure

Revised official figures show that the UK economy grew last year at the fastest pace since 2006.

The Office for National Statistics (ONS) said the economy expanded at 2.8% in 2014, approaching the figure of 3% seen eight years before.

The ONS boosted the figure after a standard revision to growth in the last quarter of 2014 was calculated.

It said Q4 growth was 0.6%, up from the previous estimate of 0.5%.

This took growth for the whole of 2014 to 2.8%, from the earlier published figure of 2.6%.

Video: Weak Inflation 'Will Drive Growth'

It said several factors were behind the greater pace increase, including a big boost to exports, along with increased household spending and services spending.

The ONS made the announcement at the same time as revealing the latest current account figures for income received and liabilities paid to the rest of the world.

It said the record current account deficit of £27.7bn in Q3 had been reduced to £25.3bn by the end of December.

Video: UK: Global Economy's "Bright Light"

New measures to calculate wellbeing of households were also released by the ONS.

It said real household disposable income increased by 1.9% last year, but overall it showed only a 0.2% increase from the figure at the end of Q2 in 2010.

It said household optimism over finances has continued to increase from a low point seen at the start of 2012.

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Vatican Bank Close To Signing Deal With Italy

The Vatican has revealed it is close to reaching an agreement with Italy over a clampdown on potential money-laundering.

A senior Vatican official said the deal may be announced later this week, and is part of Pope Francis' attempt to sweep clean Vatican finances.

For decades the powerful financial institution within the Holy See has been accused of facilitating illicit behaviour.

Officially known as the Institute for Works of Religion, it has faced accusations of providing a tax haven for wealthy Italians.

That practice violates the bank's mission of managing funds for the church and helps well-connected Italians evade taxes, according to investigators and regulators.

Pope Francis has forced through major changes

Since his election two years ago, Pope Francis has forced major changes on the bank to rebuild trust and its sense of purpose.

Last year it blocked accounts of 2,000 clients, ended around 3,000 "customer relationships", and saw a management overhaul.

Video: HSBC Says Sorry

The bank's 2014 annual report is due to be revealed in the coming weeks.

The data-sharing agreement comes on the back of Italy's recent deals with Monaco, Liechtenstein and Switzerland.

Meanwhile, US investigators have agreed a deal with Swiss private bank BSI, over voluntary disclosure of tax-related offences by wealthy Americans.

Lugano-based BSI is to pay a $211m (£140m) penalty after admitting for decades to operating thousands of client accounts to hide assets from US authorities.

Video: Credit Suisse Fined For Tax Evasion

There is now expected to be a flood of settlements between the US Department of Justice and the notoriously secret Swiss private banking sector.

But the voluntary disclosure provision does not include Swiss banks already under criminal investigation.

Last May, Credit Suisse paid more than $2.5bn (£1.7bn) over tax avoidance and rival UBS admitted wrongdoing and paid $780m (£530m) in a 2009 tax evasion settlement.

Criminal investigations continue into several other Swiss banks, as well as a probe into HSBC's Geneva private banking arm.

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