I am often asked what the difference is between financial planning and lifestyle financial planning. It is a question I love to answer by relating a true story. Imagine the scene: two advisers, both seeing the same married couple as potential clients. Adviser A is a highly qualified (chartered and certified) financial planner. Adviser B […]
The FCA has revealed it is pursuing two unregulated introducers involved in the transfer of at least £86m in pension assets from over 2,000 customers. In the watchdog’s monthly round-up, FCA executive director for enforcement and market oversight Mark Steward discusses how the FCA is approaching fraudsters as a new advertising campaign launched earlier in […]
The Pensions Regulator has issued a record number of compliance notices against employers for breaching auto-enrolment rules, according to its quarterly enforcement bulletin. An update published today says that between April and June the watchdog issued 27,219 compliance notices, which is the most in any three-month period. The bulletin also notes how several different powers […]
Most firms regulated by the FCA are satisfied with its performance and believe it is an efficient regulator, the watchdog has said. The survey conducted by the FCA and its Practitioner Panel – one of its advisory bodies – sought feedback on the regulator’s performance from the firms it oversees. The results showed that both satisfaction and […]
Investing at this stage of the market cycle is a tough balancing act. While over-exposure to risky assets leaves a portfolio vulnerable when a correction really bites, taking too much risk off the table too soon can mean missing out on the remaining opportunities which may still present themselves over the coming months. With so […]
A complaint that an Aviva system error kept an investor from retirement for five years and resulted in substantial financial distress has been rejected by the Pensions Ombudsman. The complainant – Mr D – held an Aviva Pension Plan until 2008, during which time he was underpaid £37,010.57 due to a fault in Aviva’s processing system […]
Just Group has acquired a 75 per cent stake in Corinthian Pension Consulting to bolster advisory services it provides to defined benefit schemes. The deal sees it take a majority stake in the holding company of Corinthian with the remaining 25 per cent retained by the existing shareholders. Corinthian provides professional advisory services to DB […]
Nearly half of parents that fall within the “bank of mum and dad” want better online guidance when it comes to their finances, fresh research shows. The housing industry estimates that more than one quarter of housing transactions are now financed by parents, making the bank of mum and dad one of the nation’s biggest […]
A majority of the public do not trust banks and think they were not held accountable for their role in the crash a decade ago according to a survey. A poll of 2,250 adults by YouGov on behalf of campaign group Positive Money shows how badly the legacy of misbehaviour has damaged the reputation of […]
Pension providers will soon have to begin submitting two new sections in their regulatory return to help the FCA monitor evolving risks in the retirement income market. Last year, the regulator set out plans to tighten up its data monitoring in the pensions space to stay on top of potential areas of consumer harm in […]
Work and pensions select committee member and Labour MP Ruth George has called for the parliamentary pension scheme to divest from fossil fuels. The MP for High Peak put her name to the Divest Parliament pledge which is a cross-party campaign to clean up the investments in politicians’ pension schemes. MPs are automatically enrolled in […]
O&M Pension Solutions has changed its systems ahead of an October deadline to help advisers meet new regulations around transfer value analysis reports. From 1 October, the FCA’s new rules mean transfer value analysis reports will be replaced by a combination of a “transfer value comparator” and an “appropriate pension transfer analysis” The transfer value comparator is […]
deVere Group’s subsidiary UK Workplace Solutions has had regulatory approval to acquire WPS Advisory, which used to trade as Priscum Direct. UK Workplace Solutions was granted the approval notice from the FCA and will merge WPS under its own brand. deVere Group chief executive Nigel Green says WPS Advisory will focus on people facing “tough […]
Aegon is readying to pay compensation to advisers and investors that were impacted by problems following the Cofunds replatforming in May. Speaking to Money Marketing today, Aegon UK chief executive Adrian Grace says compensation will be paid for a range of issues, including advisers having to do extra work as a result of the Cofunds […]
Royal London expects the migration of Ascentric assets to the new Bravura-backed platform to be completed by the end of the year. Money Marketing reported in July Royal London-owned platform Ascentric had transferred just 10 per cent of assets to its new platform with no date confirmed for the next phase. However, Royal London chief executive Phil […]
Royal London chief executive Phil Loney has pressed government to commit to the pensions dashboard project, saying the initiative will bring UK savers in line with other countries. In July, The Times reported secretary of state for work and pensions Esther McVey was considering shelving the dashboard because it is not the government’s responsibility. A […]
A British Steel IFA who has had their transfer permissions reinstated says many advisers have “misinterpreted” the FCA’s regulations on the subject. In February, County Capital Wealth Management, which trades as The Pensions Review Service, became one of the 10 firms that voluntarily agreed to stop doing transfer work with the watchdog. It regained permission […]
The FCA has published the findings of its review into how non-deposit taking mortgage lenders and mortgage third-party administrators handle complaints, concluding that some approaches are “inflexible”. The regulator wanted to see if the processes involved in handling complaints posed a risk to customers, and, in some areas, found room for improvement. While the FCA […]
Former Investment Quorum chief executive Lee Robertson has been appointed to the board of the Association of Independent Non-Executive Directors. Speaking to Money Marketing, Robertson says he is looking forward to giving back to the industry, following his departure from Investment Quorum, which he founded in 2000. He says: “It just seems like a nice fit for […]
If you agree with the premise that funds with high charges generally underperform those with low charges, then you must also agree a portfolio that accrues high costs will generally underperform one with lower costs. And if you accept this, the obvious conclusion is to hack away anything that increases that cost. Switching from higher-priced […]
The pensions dashboard: now there is a good idea, surely? Well, actually no, it is not. To be fair, it sounds like a good idea – a one stop shop where you can see all your various pensions in one place, neat and tidy, lovely and shiny. But there are some problems – quite a […]
When I first started flicking through career guides and thinking about what path to take, I wanted to make sure my job gave me flexibility, the ability to travel and the opportunity to meet people. After researching it, I realised a career in financial planning could tick all these boxes and, so far, my experience […]
Employers providing DC pensions pay far less into them than those providing DB schemes Sooner or later, we will have to accept the fact the golden age of company pension provision in the UK is over. It has been for some time now, yet the pensions industry and the government are still in denial. The […]
Industry should focus on annuitisation as a concept rather than an annuity as a product In last month’s article, I looked at how retirement advice does not have to be black or white. There are solutions that bridge the gap between annuities and drawdown, and plenty of scope to innovate the way advice is delivered. […]
The consequences of the European referendum result have been far-reaching and, in many ways, unquantifiable. We can make pretty well-educated guesses about the impact of the uncertainty created on economic growth based on declining business investment, for example, but we cannot know for sure where exactly the GDP line would have gone if the country […]
Another pensions dashboard deadline has come and gone, despite the original intention to launch in 2019. The feasibility study, first expected in spring and then delayed until summer recess, has still not been published. This begs the question: will the dashboard ever become reality? Rumour abounds that secretary of state for work and pensions Esther […]
Contingent charging is at the heart of the defined benefit transfer scandal, and the FCA must be bold enough to ban it You may wonder why I have never sounded off in Money Marketing about commission. The answer is that, when I started this column, commission had been banned for two years. So my past […]
It was with little surprise we saw another Green Paper looking at reform of care and support for older people, due in summer, merely kicked down the road into the autumn. Then the incumbent health and social care secretary was replaced shortly afterwards. With all votes beginning to count as the disengaged becoming louder in […]
I have always had a keen interest in the content marketing side of my business. The last few years have seen content marketing become more important across the sector, with everyone from fund groups, product providers, platforms and advisers looking to excel in it. For those less up to speed, content marketing is a strategy that […]
Proposals in the Retirement Outcomes Review aim to solve ongoing concerns around consumer detriment Three years on from the start of pension freedoms, there are still concerns being raised about the workings of the system and what the implications might be for consumers over the longer term. But are these concerns really justified? Whether you […]
It was announced in last year’s Autumn Budget that, from April 2019, tax will be charged on gains made by non-UK residents on the disposal of all types of UK immovable property. At the time of the announcement, HM Revenue & Customs also produced a technical note setting out the scope of the new charge […]
Following the withdrawal of guidance on unfair contract terms in 2015, the FCA is now consulting on draft guidance based on current legislation. The move highlights its concerns that contract terms allowing firms to unilaterally vary them may be unfair to consumers and disrupt the balance of power. That said, the FCA does acknowledge the […]
How do advisers stay relevant in an increasingly automated world? People can equip themselves with an ever-growing armoury of apps and robo solutions to help with their financial planning needs. Why pay for an adviser? As an adviser, your unique selling points are the things that make you human. Your emotional intelligence allows you to […]
Many believe a client’s lifetime allowance can no longer be protected once a deadline has passed. But there are circumstances where a late application can still be made. If benefits are crystallised in excess of the lifetime allowance, a tax charge of 25 per cent or 55 per cent arises. The allowance has fallen year […]
People are living longer; a challenge for all sections of society. To deal with these challenges, new approaches will need to be taken by the state, individuals, employers and pension providers. There are five key components to living a long, productive and fulfilling life: resilience to changes in employment and income; agility and being able […]
As we enter year nine of the “great recovery”, there is talk about good economic numbers amid rising levels of political risk. But just how is the world so much riskier now than in periods around, say, the Cuban Missile Crisis or the remilitarisation of the Rhineland? Not all political risks are alike, nor do […]
Cast your mind back to June 2014. King Juan Carlos I of Spain abdicates the throne after a 39-year reign. Uruguay’s Louis Suarez is expelled from the World Cup for biting Italy’s Giorgio Chiellini. The European Central Bank breaks new ground in monetary policy by cutting its deposit rate to a negative level for the […]
Consolidation in the Sipp market continues, with the rate only likely to increase. This means that, sooner or later, an adviser will more than likely have a client whose Sipp operator is acquired. What five things should you be thinking about? 1. Why was the Sipp provider acquired? Quite simply, is this a commercial acquisition […]
To say we have a protection gap in the UK is something of an understatement. It certainly exists in relation to personal protection. One of the main reasons for this is the assumption by those who have corporate cover that it will be enough. In some cases it will be but more often than not […]
There is a bewildering choice of exams at level 4, all tested in different ways. Here, I want to look at two of the most popular routes: the CII’s Diploma in Regulated Financial Planning and Diploma in Financial Planning. There are, of course, options from other examining bodies such as the Chartered Institute for Securities […]
I was never a big fan of the business plan process when I worked in the industry. Each year, it became more complicated and meaningless. Bottom-up numbers painstakingly developed through God knows how many boring internal meetings were then “calibrated” at group level. Inevitably, our projected revenues were increased and expenses reduced. Basically, our work […]
Ascot Lloyd investment director Steven Lloyd explains how a centralised investment proposition and bespoke discretionary fund management caters for individual client needs. Can you explain your investment approach? We use a combination of in-house and outsourced solutions, depending on the individual client. We have a centralised investment proposition that provides a range of choices for […]
Some advisers are welded to independence but for others restricted status makes more sense. Three restricted advice firms share their experiences The one-man band Lowland Financial managing director Graeme Mitchell became restricted after he was advised that a one-man band would not be able to demonstrate true independence after the Retail Distribution Review. “I took compliance advise and spoke to the FCA asking how feasible is it for a one-man band to demonstrate […]
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With his historian hat on, Ed Hezlet considers what investors might learn from the British academic historian, Herbert Butterfield.
As investors head off for their holidays, our team recommends beach reads to help you reframe the uncertain global environment and look at today’s problems in new ways. We hope there’s a title for every taste, covering topics including investment, leadership, technology, economics, the lessons of history and sport. We hope you enjoy our selection.
‘It would be an unalloyed, unadulterated, absolute good. Everything would be good.’ Mark Carney, 5 July 2018, speaking at a Northern Powerhouse business summit.
Thomas Buckingham, portfolio manager of the JPM UK Higher Income Fund, discusses UK inflation and what it means for investors.
William Meadon, portfolio manager of the JPMorgan Claverhouse Investment Trust plc, discusses profit warnings and the impact on share price .
Levels of merger and acquisition (M&A) activity have historically moved with the stock market. Zach Chadwick, an analyst within the J.P. Morgan Asset Management UK equity team, looks at how this cycle has been no exception and discusses some common behavioural biases.
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.
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
FCA chief executive Andrew Bailey has just marked his first year at the top of the regulator. Money Marketing asks: Who is the man running the financial services show? Watch: Where do your FCA fees go?
Title: MM Wired: Beyond the election Date: Thursday 15th June Time: 11am Money Marketing Wired returned in association with The UK Edge on Thursday 15 June with a topical debate on the election results. To see the full on-demand version of this session, please watch the video above. Panelists Stephanie Flanders – Chief Market Strategist (UK […]
Many parents value the standard of education offered by independent schools and will pay for that privilege. Planning for the fee payments can help. Even if the children do not go to an independent school, they could go to university. In this case, the children can end up with a huge outstanding student loan which […]
Mark Devlin, Senior Technical Manager at Prudential looks at how pensions tax relief works to help with planning for clients. Winning the lottery has its appeal, who wouldn’t like turning the cost of the ticket into a fortune? Pensions tax relief in essence gives you free money (albeit with a lesser return than a lottery […]
Thomas Smith, Fund Manager & Co-Head of Emerging Market Equities, argues that a new India is taking shape with the introduction of biometric IDs, increasing smartphone penetration and a growing demand for credit. Read more here Investment risks Past performance is not a guide to future performance. The value of an investment and any income […]
By Thomas Smith, Fund Manager & Co-Head of Emerging Market Equities Andres Manuel Lopez Obrador has been elected President of Mexico, with over 50% of votes cast – the largest share ever for a president in Mexico. What are the implications for the Mexican economy? Read more here Investment risks The value of an investment and […]
Ewan Thompson, Manager of the Neptune Emerging Markets Fund, explains why dollar strength is an important indicator for emerging markets, which have weathered the recent volatility well. Watch the video here Investment risks Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well […]
Vanguard and Nest Insight are delighted to publish our “How the UK Saves” report, one of the most extensive studies of retirement in the UK. This inaugural report analyses the choices, demographics, behaviours and outcomes of the nearly 6.5 million people using the National Employment Savings Trust (NEST). Analysis at both the employer and individual […]
As a goals-based life planner who runs client portfolios to protect on the downside, the term “cautious optimism” seems made for Austyn Smith. However, the phrase does not do justice to the managing director of Austyn Smith Associates. It does not convey his belief that life is for living and using your money to do […]
Drawdown can seem a bit like one of those optical illusion pictures that pop up on the internet every so often. The dress that some swear is black and blue, while others are convinced its gold and white; the trainers that could be pink or green. Look again on a different day and chances are […]
Equanimity managing director Helen Howcroft on defeating sexism in the industry and promoting advice more effectively Equanimity managing director Helen Howcroft is the type of person who rolls her sleeves up and just gets on with things. That has been an advantage in an industry which has made a lot of progress in recent years […]