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The pensions puzzle for public sector workers
Michael Klimes speaks to advisers about how they are dealing with annual allowance breaches in public sector schemes
Royal London profits up 20% as DB transfers boost pension business
Royal London boosted profits by 20 per cent last year to reach £396m on the back of an increase in pension sales. Individual pension sales increased from £6.3bn to £6.8bn, despite a number of headwinds for the sector as a whole including the end of the auto-enrolment roll-out, turbulent market conditions as a result of […]
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Clive Waller: Contingent charging can only lead to bad advice
Money Marketing editor Justin Cash wrote an excellent piece recently, suggesting it was time to end contingent charging for defined benefit transfers. I tweeted my agreement, only to be castigated by numerous advisers. I found many of the arguments to retain contingent charging weak at best; others quite ludicrous. Blog: Why DB transfer contingent charging […]
Iain Anderson: Social care can’t be left on the backburner
It goes without saying Brexit has overshadowed much of the usual business of government. The bold vision of domestic policy reform Theresa May set out on the steps of Number 10 on her first day in office in 2016 has been reduced to a sideshow at best, as she grapples with the all-consuming endeavour of […]
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Could network training schemes cause adviser bias?
With so many firms struggling to hire talented advisers, should the place where candidates have trained determine the kind of advice they give? The number of pathways into the advice profession has increased significantly over the past decade in a bid to encourage new talent. Coupled with the rise of vertical integration and increased competition […]
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AJ Bell: Pensions transfer activity has peaked
Statistics from the final quarter of last year suggest pension transfer activity has passed its high-point, with the FCA’s focus on the market forcing advisers out of play. AJ Bell cites government figures showing that transfers dropped 20 per cent between October and December 2018, down to £6.3bn from £8bn. AJ Bell senior analyst Tom […]
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Adviser trade body sets up group to fight FOS limit increase
Adviser trade body Libertatem is looking to put together a “steering committee” of industry professionals to take their challenges over the increase in the Financial Ombudsman Service’s compensation limit to the FCA. Libertatem says a meeting between itself and the FOS has been confirmed, and it is now seeking meetings with the Treasury and FCA […]
Bank of England keeps base rate at 0.75%
The Bank of England’s monetary policy committee has voted unanimously to keep the base rate at 0.75 per cent. The rate has stayed at this level since it was raised from 0.50 per cent in early August last year. The MPC, according to the minutes, believes that the economic outlook hinges “significantly” on Brexit, and is […]
Aegon applies for master trust authorisation
Aegon has applied for master trust authorisation, the firm has revealed. The provider submitted its request to The Pensions Regulator today to set up a master trust – a form of occupational pension scheme that provides money purchase benefits across multiple unconnected employers. The master trust market has grown in the wake of auto-enrolment as […]
Editor’s note: Public sector pensions aren’t as perfect as you think
If you lived outside of our lovely financial planning bubble, the words “I’m saving too much into my pension” wouldn’t sound like a problem at all. The person you were complaining to would probably respond with something along the lines of “oh no, you’ve got too good a job, have earned too much money and […]
LV= proposes to change company status to make nimbler decisions
Mutual LV= is proposing to change its status from a friendly society to a company limited by guarantee so it can make decisions more nimbly. The announcement was made in annual results published today and will be subject to a vote among LV= members at a special general meeting on 22 May. Currently, LV= is a […]
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 – […]
Aberdeen Standard Investments takes control of five funds in Virgin Money joint venture
Aberdeen Standard Investments has been appointed as investment adviser for £3.6bn of assets across a range of portfolios for Virgin Money, marking the next step towards the pair’s joint venture. The latest stage of the plans has seen ASI appointed investment adviser for five funds: the Virgin UK Index Tracking Trust; the Virgin Bond, Gilt and […]
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Govt should not rush through auto-enrolment hikes
The government should not introduce any sudden hikes to auto-enrolment contributions as this could make savers uncomfortable. In a note published today investment manager Hargreaves Lansdown says auto-enrolment is entering an important stage as contributions rise next month. In April contributions will step up from 5 to 8 per cent with experts waiting to see […]
Pentins director Samantha Secomb on why more women are not financial advisers
Pentins director on her mission to discover why there are not more female advisers and her Women’s Wealth brand When Pentins Financial Planners director Samantha Secomb started her financial services career in the 1990s, being a financial adviser was essentially a sales role. Secomb can understand why that did not have great appeal for women, […]
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FCA to instigate court action over abuse of power claims
The FCA is embroiled in a dispute with a firm over whether the regulator abused its power under the conditions of the Financial Services and Markets Act and is in the process of preparing to take the issue to court. Commissioner Anthony Townsend says the FCA has commenced proceedings against a firm accusing it of […]
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Harlequin’s derelict hotels and the disappeared £400m
The Financial Services Compensation Scheme has released new information on how the recovery of money for clients from the Harlequin group is progressing. The Harlequin group is a well know collection of companies involved in the marketing, sales and development of overseas investment properties. Many of these are unregulated investments and have featured prominently in […]
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FSCS: Recoveries totalling £300m have cut industry levy
The Financial Services Compensation Scheme has recovered just under £300m from failed financial services firms since 2014. Outgoing chief executive Mark Neale labelled the recoveries “unsung work” on behalf of the lifeboat fund which is a major contributor to public confidence in the industry. The FSCS says the recovered funds have significantly reduced what advisers […]
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FCA under fire for failing to track consumer outcomes
The National Audit Office has criticised the FCA and three other regulators for failing to prove how they are responding to consumer problems and not offering enough protection to those in need. In a report today the NAO found that the regulators understand the significant difficulties facing consumers in the financial services and utilities markets, […]
Curtis Banks: Sipp market will overcome challenge of non-standard assets
Curtis Banks has backed the Sipp market to bounce back from the reputational hit of defined benefit transfers and non-standard asset failures as the firm posts another growth in sales. Revenue increased by 6 per cent to £46.1m and adjusted profit before tax increased by 13 per cent to £12.1m. The number of new Sipps […]
SimplyBiz acquires Defaqto
Support service provider SimplyBiz has begun to deploy some of the funds raised from its stock market float with a deal to buy ratings and technology business Defaqto. SimplyBiz will pay £74.3m to acquire the entire issued share capital of Regulus Topco Limited, Defaqto’s parent. On completion, Defaqto will have £3.4m in cash on its […]
Westpac boss: Decision to exit advice was ‘not taken lightly’
The boss of Westpac, one of Australia’s largest banks, has said that its decision to exit the advice market “has not been taken lightly” as the firm looks to restructure its wealth management division. In an update posted on the London Stock Exchange’s news service, the bank confirms its decision to pull out of the […]
FCA slaps £27.6m fine on UBS over reporting failures
UBS has been fined £27.6m by the regulator after misreporting close to 136m transactions over a ten-year period. Between November 2007 and May 2017, the Switzerland-based bank failed to report a number transactions as required but also reported cases that did not require it. The FCA says UBS failed to provide complete information on 86.67m […]
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Ros Altmann: Without advice Lifetime Isa savers face clear risks
Since it was first proposed, it has been clear to many that the Lifetime Isa is unsafe to sell without advice. Significant dangers arise from the product’s complex design, absence of clear risk warnings, lack of suitability checks and asymmetry of information between customers and providers. The first evidence of such problems is appearing. Lisas […]
Pimfa: Diversity is vital to attracting talent
Diversity and inclusion are a key issue for the financial services sector. Not only does getting it right positively impact the bottom line, but it affects the perception of our industry, which is vital given our need to attract talent. McKinsey’s 2018 Delivering Through Diversity report found companies in the top 25 per cent for […]
Emma Thomson: Breaking down the ‘them and us’ mentality with insurers
When I announced I was leaving adviser firm Lifesearch after 18 years to join an insurer, someone quipped I was “moving to the dark side”. Is there really such a “them and us” mentality in our market and, if so, does it hinder us in making consumers more financially resilient? Working for both insurer and […]
Heather Hopkins: Young, aspiring financial planners need to be nurtured
Last week I met John, an aspiring financial planner who is less than a year into his job at a mid-sized IFA firm. John told me he had always wanted to be a financial planner. He’s interested in money; he wants to make some and he wants to help people manage theirs. He had been […]
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TPR: Your role in making auto-enrolment contribution increase a success
With more than 10 million people now newly saving or saving more into a pension, auto-enrolment has fundamentally changed the way people are planning for retirement. But this far-reaching social policy is not standing still. Next month, we will see the last scheduled increase to minimum contributions, which will mean staff saving at least 5 […]
Helena Morrissey: We should be more proud of next International Women’s Day
There is not a lot to celebrate when it comes to diversity in financial services. But things can change If you are a female in finance, this month’s International Women’s Day may have felt bittersweet. Yes, 300 organisations have signed up to the government’s Women in Finance Charter. Yes, several female chief executives have been […]
Blog: Millennials deserve better than robo-guidance
I have an issue with how we talk about making sure more millennials get “advice”. I am one, so consider this blog both my professional and personal view about how we seem to make the following assumptions: 1. Millennials will inevitably be better off if they use a trendy robo-adviser or app to save and […]
Noreen Walker: Effective tax management strategies for high earners
Tax is complex enough at the best of times but its intricacies are exacerbated among high earners Taxation is a crucial factor when managing the finances of high-income clients. It is a complicated area, made even trickier by the fact there are many different variables that can affect the amount of tax owed. The standard […]
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Andy Thompson: Make room for all models in advice delivery
VouchedFor recently released its list of the top-rated advisers in the UK. These are advisers who receive the highest number of positive reviews from clients. The list includes 1,172 advisers from 737 different firms, be that regional directly authorised firms, large national firms or networks. The diversity of the list serves as an important reminder […]
Editor’s note: Financial services must stop paying lip service and finally deliver on diversity
This week, Money Marketing is celebrating International Women’s Day with an all-female cast of contributors in our print edition. Last Friday marked International Women’s Day 2019, with this year’s theme, #BalanceforBetter, aiming to build a gender-balanced world where everyone has their part to play. While men will inevitably appear where, for example, they are the […]
Phil Bray: The secret to spending less on marketing
Too many business owners overlook the problem of client conversion rates Early in our relationship with an adviser, we will ask them to identify firms they admire and those they perceive to be competitors. The answers are almost always identical. When talking about those they admire, the same names trip easily off the tongue. There […]
Money Marketing Awards 2019: shortlist revealed!
What an incredible year it has been for the advice profession. Despite persistent fears negative headlines are holding advisers back, there is hope on the horizon that the government really is sitting up and taking notice of the role financial planning can play. The dial has finally moved on the cold-calling ban, the introduction of […]
Annabel Brodie-Smith: Why boards are vital for investment trusts
What is ahead for investment company boards? Warren Buffett said: “In the business world, the rear-view mirror is always clearer than the windshield.” It’s sometimes hard, if not impossible, for fund managers to know what they face in the future and how their portfolio should be positioned. One of the strengths of the investment company […]
Quilter: Planning points impacting women more than men
Factors such as longevity and career breaks can negatively affect a woman’s long-term financial situation International Women’s Day, celebrated on 8 March, ran with a theme of “balance for better”. This highlights balance in every sense – and finances need to be one of them. While financial planning is not an inherently gender-specific process, there […]
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Claire Trott: Pension planning should not all hang on the tax year
Clever planning will spot where gains can be made for clients As we head towards another tax year end, it is time to start considering whether it will have an impact on clients’ retirement decisions. But not everything pension-related has to be timed around the tax year. A careful eye on timing is important all […]
How advisers invest: ‘We can’t know everything in every asset class and area’
EQ Investors head of investment Sophie Kennedy explains how impact investing has become the USP for the company’s offering to external advisers Do you outsource investment management, keep it in-house or combine both approaches?We offer financial planning and investment management, so we are all in-house. We have managed money for internal clients but one of […]
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Catriona Standingford: CII exam on securities and dealing is a real asset
J12 is not one of the most widely talked about exams but is an interesting option for advisers looking to add a string to their bow The Chartered Insurance Institute’s J12 Securities Advice and Dealing exam was introduced in 2013 following the RDR, along with its Level 4 Certificate in Securities Advice and Dealing. This […]
Boosting the appeal of income protection among the under-35s
Research shows advisers believe consumers are not addressing their protection needs early enough Many advisers acknowledge that income protection is a hard sell, but research from Royal London has found the under-35s are a particularly difficult market to crack. The firm found 74 per cent of advisers felt younger people were addressing their protection needs […]
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Cathi Harrison: Taking suitability reports to the next level
Most reports can comfortably cover the ‘who’, ‘what’ and ‘where’, but the ‘why’ and ‘how’ are often overlooked Paraplanning is about much more than suitability reports, but there is no denying they are a fundamental part of the role and one of the trickier elements to get the right balance on. Unfortunately, it is still […]
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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
Three new opportunities in the protection market – they’re not what you think!
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.
Current multi asset positioning
With continuing questions around global growth, US interest rates and Brexit, Nersen Pillay, Investment Director at Royal London Asset Management provides an update on positioning within our multi asset funds, as the Investment Clock predicts soggy growth and weaker inflation expectations. Read the article here About us: Royal London Asset Management (RLAM) is one of […]
How sustainable income levels can protect portfolio strength
Taking a sustainable level of income is important in helping drawdown customers maintain a resilient portfolio during periods of investment volatility. Customers in income drawdown should think about the impact of volatility on their pension. While someone building up a pension can mitigate the effect of market falls by continuing to make contributions to their […]
Preconceptions and misconceptions of IHT
By Kim Jarvis Even though inheritance tax (IHT) is based on a simple concept – whatever you own at the date of your death will potentially be subject to tax – people’s preconception, for very good reasons, is that it is complex. Take the introduction of the residence nil rate band (RNRB), effective from April […]
Opportunities and risks in sterling and global credit markets
Some investors are diversifying beyond traditional sterling credit into global strategies. We compare and contrast the opportunities and risks involved, and identify more crossover and less upside in global bonds than you might imagine. Read the article here Past performance is no guide to the future. The value of investments and the income from them […]
Making it in fund management: ‘They awarded me the status of honorary man’
OLIM co-founder Angela Lascelles on her determination to make it in a male-dominated industry and juggling work with motherhood More than three decades ago, Angela Lascelles, co-founder of investment manager OLIM, decided to follow in her father’s footsteps and pursue a career in the investment industry. She recalls: “When I was a child, I asked […]
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Profile: ‘Most people do not know what a good financial planner looks like’
FMB managing director on how a university business programme helped to differentiate her company What makes you stand out from your peers? Highlighting your chartered or certified status on your website may have been enough several years ago but many more advisers have added those credentials to their armoury. Post-RDR, differentiation requires a little more […]
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Profile: ‘We could be facing a constitutional crisis in the UK’ says Leodis chief
New Leodis Wealth chief executive on supporting clients through the chaos caused by the UK’s exit from the EU The long and tortuous road to Brexit has taken us from a political soap opera to what many regard as a tragedy over the past two-and-a-half years. Whatever drama is yet to unfold, the message that […]