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How do advisers define value?
Michael Klimes explores how advisers define and measure value in their businesses
Sanlam takes over £135m mandate from Luxembourg fund manager
Sanlam UK has struck a deal to manage three VAM Global Management funds, with combined assets of $175m (£135m). The VAM Cautious, Balanced and Growth funds, part of its multi-asset fund range, will be managed by the Sanlam UK direct discretionary funds team. The funds were previously managed by the Close Brothers Asset Management which […]
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Auditors at collapsed mini-bond firm questioned as compensation looms
Accountants and lawyers are among at least 30 people asked to hand over information about collapsed mini-bond provider London Capital & Finance, according to The Times. Before its collapse at the end of January, £237m had been invested in LCF by some 11,500 private investors. The firm had previously raised flags with the FCA for […]
Rachel Vahey: Junior Isas gaining in popularity for good reason
The rise of the Jisa shows no sign of abating as the emphasis on intergenerational wealth planning grows The Junior Isa is gaining popularity with clients, with almost 15 per cent more plans subscribed to in 2017/18 than the previous year (see chart below). Part of this growth is down to the product’s flexibility to […]
Simon Collins: Setting your SMCR milestones
Keeping up momentum is key, even if the December deadline seems some way off As firms step up their Senior Managers and Certification Regime project activity, challenges facing HR and compliance functions are becoming apparent; not least the question of resource, and competing priorities for what is a finite resource at most firms. Some firms […]
Phil Wickenden: Tax system’s tech overhaul far from over
The Office of Tax Simplification has called for the government to consider auto-enrolling all taxpayers into HM Revenue & Customs’ personal tax account service, after concerns that developing technology will cause individuals to lose sight of their obligations. The OTS has published a discussion paper looking at the risks tax simplification through technology poses. The […]
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Kim North: Providers must take more responsibility for ageing population
The country is ageing. Office for National Statistics figures suggest around 18.2 per cent of the UK population were aged 65 years or over at mid-2017, compared with 15.9 per cent 10 years previously. This is projected to grow to 20.7 per cent by 2027, the highest-ever level. With this trend in mind, the provision […]
Baillie Gifford transfers £1.3bn to Hargreaves Lansdown
Baillie Gifford is set to transfer its investment trust savings scheme to Hargreaves Lansdown. The scheme, which includes its Isa, Share Plan and Children’s Savings Plan, is being moved as Baillie Gifford says the long-term interests of the plan holders will be “best serviced” by a transfer of investments to the the direct-to-consumer platform. More […]
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FSCS claims over collapsed DFM Beaufort to be settled in coming weeks
The Financial Services Compensation Scheme is processing around 1,400 negligence claims against collapsed discretionary fund manager Beaufort Securities, it has confirmed. The lifeboat fund tells Money Marketing that decisions on the claims will start to be finalised at the beginning of May. Beaufort Securities became the target of both FBI investigations in the US and FCA sanctions […]
Income protection sales surge 50% in Q1
Income protection sales reached a record breaking growth of 50 per cent in Q1 this year, according to figures from technology provider Iress. Data from its transaction portal The Exchange shows growth across sales of critical illness, life, income protection and multi-benefit offerings. Income protection saw the largest year-on-year increase at 50 per cent, followed […]
How to make protection mean more to your clients
In 2018, Scottish Widows paid out 98% of all claims, helping 9,499 customers and their families*. But what do these figures really mean to your clients? Psychologists refer to the term ‘statistical numbing’ to explain why we tend to find one person’s personal story more powerful than abstract statistics. So, this year, Scottish Widows are […]
Overcoming protection hurdles
What’s the news in protection? On the surface you could be forgiven for thinking there isn’t anything new, that protection is still generally being overlooked and undervalued. Figures from Royal London’s State of the Protection Nation Report show that just 35% of people have life insurance, 12% have critical illness cover and 9% have income […]
How longevity is turning retirement planning on its head
For generations, life expectancy has been steadily increasing, with more and more people now likely to live to 100. Scottish Widows’ pension expert Robert Cochran tackles this longevity landscape with economist and co-author of the book ‘The 100-Year Life’, Andrew Scott, in episode one of Scottish Widows’ new podcast series – “The Future of Financial Planning”. Click […]
SAVING 2.0 – Time to think differently
We’re all living longer – half the future generation born after 2036 is expected to live to 100*. But despite more of us saving for our retirement, and from a younger age, there’s still a lot of work to do if we want our time in retirement to be both financially and physically healthy – […]
A hostile climate and burrito bonds: The Wells Street Journal
A weekly account of the curious goings-on in the world of financial services A hostile climateOn the same day the Prudential Regulation Authority put out a policy statement on the financial risks of climate change and five London landmarks were ground to a halt by climate protesters, it was starting to feel like a bit […]
DWP publishes guidance on GMP equalisation
The Department for Work and Pensions has published its first round of guidance to help trustees resolve unequal guaranteed minimum pensions today. A GMP is the minimum pension that an occupational pension scheme, contracted out of the additional state pension between 6 April 1978 and 5 April 1997 on a salary-related basis, has to provide […]
Average compensation for pension products jumps the most
Upheld complaints related to pension and decumulation products accounted for the greatest average increase in compensation pay outs over the second half of 2018 FCA data shows. The average redress increased from £594 to £876 between 2018 H1 and 2018 H2, the latest round of complaints data published today reveals. During the second half of […]
James Hay parent IFG share price jumps as shareholder meeting looms
James Hay parent IFG Group’s share price has rocketed since a potential sale of the platform was announced last month. At the end of March, IFG said it had reached a sale agreement with private equity firm Epiris that will see the firm valued at £206m. IFG, which also owns national advice business Saunderson House, […]
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FOS criticised over DB transfer claim handling
A better way must be found to manage claims against IFAs on defined benefit transfers, as the current settlement process is untenable, experts say. In the latest edition of Money Marketing’s series of live debates, MM Wired, Delta Financial Management director Jarrod Ellis, O3 Insurance Solutions managing director Jamie Newell and Libertatem director general Garry Heath […]
Pimfa appoints Openwork and Schroders chiefs to board
Trade body Pimfa has made four new appointments to its board of directors to help represent the investment manager and financial adviser sectors. The new members are Openwork chief executive Mark Duckworth and Schroders global head of wealth management Peter Hall. Duckworth is responsible for group and distribution strategy, and oversees the development of the […]
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Woodford hands protégé Barnett £42m property group stake
Two of the UK’s best-known fund managers have reaffirmed their close-knit relationship this morning, as Neil Woodford has sold a £42m holding in a listed property company to Mark Barnett, his former protégé at Invesco. While Woodford’s flagship equity income fund continues to struggle to stem outflows, funds managed by Barnett will take on the […]
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Advisers get behind PFS DB transfer standard
More than 200 advice firms have signed up to the recently launched code of good practice for advisers who specialise in defined benefit transfers. On 9 April, a taskforce set up by the Personal Finance Society launched their new consumer guide to help the public better understand what to expect from regulated financial advice in this […]
Quilter pension transfer business drops by two thirds
Quilter’s defined benefit to defined contribution sales dropped by two thirds in the first quarter of 2019. Pension transfers sales brought the wealth manager £0.2bn, compared to £0.6bn in the same period last year. In a stock exchange announcement from this morning, the company said this drop reflects Quilter’s attitude towards this “source of new […]
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CISI warns FCA that rise in PI costs could damage small firms
The Chartered Institute for Securities and Investment says increasing the Financial Ombudsman Service compensation limit to £350,000 may have unintended consequences for small and medium-sized firms. It has asked the FCA for urgent clarification for its financial planning and wealth manager members who may be affected by the increase. On 8 March, the FCA confirmed in a policy statement […]
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Garry Heath: My FOS and FCA road trip
The health monitor on my mobile is currently in raptures. It seems I am hitting my steps target every day, but this is not due to a sudden desire to be fit. It is the fall out of Financial Ombudsman Service’s barking idea to increase its maximum pay out to £350,000 and the resulting problems […]
Phil Wickenden: Investment trusts deserve our attention
Though there have been some fairly hair-raising moments for investors over the past decade, it is interesting to note that those who invested regularly in investment trusts in the 10 years leading up to the financial crisis, then withdrew the natural income in the 10 years after, have virtually quadrupled their money. These kinds of […]
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Editor’s note: Advisers need to report the rogues in their midst
Each time an advice market scandal emerges, a flood of commentary inevitably follows bemoaning the fact it was not spotted sooner. Why did the regulator fail to act until after the horse had bolted? At the Money Marketing Interactive conference earlier this month, the FCA’s co-director of financial advice and life insurance supervision Debbie Gupta […]
Alan Knowles: Funding life-enhancing tech with protection
Last month, I attended Naidex, Europe’s largest disability event. It was a truly inspiring and eye-opening experience, and to sit and speak with other companies that help people with disabilities was humbling to say the least. It quickly became clear that the way we speak with people who have disabilities has a profound effect on […]
Jason Butler: Why you need to know if clients are smart spenders
A key factor in helping people manage their money effectively is having a clear idea of their monthly and yearly spending needs and habits. But how much time do you spend getting to grips with your clients’ lifestyle spending? Do you just ask them to tell you how much they spend? Or do you ask […]
Tony Wickenden: A very modern tax for an increasingly digital world
Knowing which businesses will be affected by the digital services tax will be a source of comfort to planners and their SME-owning clients More and more parts of our life are going digital, and the financial planning sector is not escaping it. Indeed, advisers of all different business models should be embracing it. The world […]
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Alan Hughes: FCA is not on a mission to end DB transfers
It is not its intention that access to high-quality transfer advice and products becomes too difficult, but more detailed guidance is needed On 22 March, the FCA wrote to the chief executives of pension providers with the conclusions from its latest work on the defined benefit to defined contribution transfer market. The thrust of the […]
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Nic Cicutti: Latest collapsed investment firm a misselling scandal of FCA’s making
Regulator was warned about London Capital & Finance but acted too late. Now it must clean up the mess I have said this before and I will say it again: West Riding Personal Financial Solutions’ Neil Liversidge is an adviser I respect hugely. Salty and down to earth, a committed trade body activist and a […]
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Andy Hart: Stop clients being their own worst enemy
The behavioural approach to planning keeps clients from financially misbehaving and answers the expensive questions In my last column, I discussed how understanding human behaviour can make us more effective advisers. But how does the behavioural approach benefit the client? The fundamental purpose of behavioural finance is to use psychology to cut out financial mistakes. […]
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Mark Polson: Unsticking the stuck on platform transfers
The higher the velocity of money moving round the sector, the greater the competition and better benefits to clients If you took the time to read the Investment Platforms Market Study (and I realise that is a big if), you will know the FCA thinks the sector is not doing too badly in general. Perhaps […]
Jason Broomer: Fund survivor bias is alive and kicking
Understanding the impact of cutting the dead wood Nothing sells funds like performance. Despite all the regulator’s railings that past performance is no guide to the future, we see flows being directed to the funds at the top of the league tables time and time again. There are, of course, far too many funds out […]
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Should advisers be reporting their own bad apples?
Planners have long called on the FCA to take a firmer stance on dubious ‘advisers’, but who is responsible for reporting suitability failings? Scathing comments from the FCA over advisers’ unwillingness to call out peers who are guilty of poor practice are continuing to cause frustration within the financial planning community. A speech from the […]
Protection Watch: Retirement confusion and cross-industry advertising
Protection Review chief executive Kevin Carr looks at recent market events Retirement age confusion for income protectionControversy is growing around the line between income protection policies and changes to the state pension age. The state pension age is currently 65 for men and gradually increasing for women from 60 to 65. By October 2020, it […]
Trevor Greetham: Brexit, the never-ending story of political risk
Brexit is the gift that keeps on giving when it comes to political risk. Every day has been as unpredictable and fast moving as the last and yet nothing has been resolved. The UK missed its scheduled departure date of 29 March after Parliament failed to vote in favour of the prime minister’s deal – […]
The savvy reasons behind platform’s new Netflix-style price model
On Monday, Interactive Investor announced a change to its charging structure to adopt Netflix-style pricing. It talked about having an “easy, modern price structure” just like the streaming service. It said that’s what its research told it customers wanted. Perhaps they do. Don’t get me wrong, I like II’s flat and transactional fee structure. You […]
Phil Jeynes: Why aren’t providers brave enough to talk to customers?
A couple of months ago, I accidentally conducted some consumer research which, as I write, has been seen by nearly two million people, has had feedback from close to 13,000 and has had direct responses from around 1,000. Here is how I stumbled across it. My car insurance renewal came through and the premium was […]
7IM: Emotions are dominating our investment decisions
2018 was a volatile year. One that tested the resolve and self-control of many an investor. US equities, normally a relatively stable market, dropped 16 per cent in December with investors scrambling over each other to sell. What happened? Did a company collapse or did trade tensions spiral? Far from being the work of market […]
How advisers invest: ‘What we look for in a platform is low cost and reasonable service’
Parsonage Financial Planning director Flora Maudsley-Barton on why she uses three platforms and complements in-house investment management with outside expertise Is your investment management in-house, outsourced or a combination of both? It is a combination of both. We come at it from a financial planning viewpoint first. We set the objectives for portfolios and also […]
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Inside Fundsmith’s new investment trust
Last month, star manager Terry Smith announced he was throwing £25m of his own money behind a new investment trust, Smithson. Ahead of its launch, Money Marketing editor Justin Cash sat down with Simon Barnard and Will Morgan, the fund’s managers, to talk strategy, as well as their thoughts on some of the hottest topics […]
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Fixing the FSCS: Experts weigh in
PFS chief executive Keith Richards, Threesixty managing director Russell Facer and financial planner Susan Hill sit down with Money Marketing editor Justin Cash to discuss what’s wrong with the FSCS, and how it can be reformed.
Wired on-demand: The politics of Brexit – What investors need to know
Welcome to the on-demand version of our latest Wired event: The politics of Brexit – What investors need to know. Exclusively for UK Edge members!
Good life gurus: Kate Shaw – going the distance
Welcome to the third instalment of our good life gurus series. We talk to Kate Shaw, an IFA and ultra runner, to find out how she got started with an exercise regime and how a healthy lifestyle helps her with her work-life balance.
MM Wired on-demand: The impact of a Corbyn govt on investments
Catch up with last week’s Money Marketing debate on what Labour would mean for financial planners with former pensions minister Steve Webb and three leading advisers.
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How are your FSCS levies calculated?
FSCS levies are one of the biggest bills advisers have to pay. But how are they calculated? Watch our video to find out Advisers slam levy increases as FSCS bills hit desks Solving the FSCS’ long list of problems FSCS chief executive Mark Neale’s blog
Advisers’ top 3 inheritance tax queries
Inheritance tax (IHT) is a hot topic for advisers of late, no doubt fuelled by last year’s review from the Office of Tax Simplification[1] and the updates expected with every Budget announcement from the Chancellor. But it seems like the review has also added to the confusion around a couple of key issues concerning IHT. […]
Environmental, Social & Governance (ESG) and PruFunds
Adrian Gaspar, Multi-Asset Investment Specialist at M&GPrudential Treasury & Investment Office (T&IO), reveals the answer to a question that is often asked “do Prudential’s PruFunds have an ethical stance or indeed are they ethical portfolios?”. The simple answer is no. However, ESG considerations are embedded in many of the underlying investment processes used to build […]
Good governance – a key differentiator
Good governance of multi-asset portfolios is increasingly important. However, the complexity of the process is increasing. Here Ciaran Mulligan, Head of Investment Manager Oversight, shares his views on how quantitative and qualitative approaches could complement each other. One of the key aspect he discusses is, not to overlook the overall economic factors at play and […]
Modi: not out?
Investing in India over the past 18 months has been somewhat turbulent. In general, India has outperformed wider emerging markets in recent years, but in the last few months it has been a bumpy ride, with performance being driven by a combination of external macro drivers and domestic political considerations. Ewan Thompson, Head of Emerging […]
Making more of multi-asset
Changes were made earlier this year to Prudential’s multi-asset range. Paul Fidell, Head of Business Development, Investments at Prudential, explains why the changes have been made and how the team are approaching asset allocation within the multi- asset portfolios given today’s challenging economic climate. Asset allocation approach within the range of Prudential’s multi-asset portfolios We […]
Why choose the Isle of Man for investing?
The Isle of Man can provide a unique range of benefits for UK-resident investors. Not only is it geographically close to the UK, in the same time zone and with out language barriers (even though the Manx language is alive and well on Ellan Vannin), but it can offer distinct advantages for investors. Many in […]
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Profile: ‘You never see an adviser proud to call themselves restricted’
IFS Wealth & Pensions director on why being independent really matters and dodging the DB transfer bullet Having personal experience of something gives you the authority to speak about it in a way someone who has not gone through it first-hand never can. It is what separates the pontifications of armchair critics from coalface opinions […]
Profile: ‘Our average client has changed, so we’re reviewing our proposition’
Kymin Financial Planners managing director on giving the firm an update, but keeping accessibility at its heart There are plenty of people in the financial advice sector working hard to shake off the stuffy and slightly old-fashioned image that still haunts the profession. Newport-based Kymin Financial Planners managing director Robin Hall is one of them. […]
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Profile: ‘A lot of people don’t understand the role of SJP in our businesses’
Oakmere Wealth Management founder discusses being a partner practice of St James’s Place It is fair to say that few advisers sit on the fence when it comes to St James’s Place. The restricted national firm has attracted criticism in recent years, particularly in relation to its vertically integrated business model. However, even the critics […]