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Editor’s Comment: A missing spoonful of sugar…
Inflation is high and almost out of control, we are in recession
and unemployment is forecast to rise next year while government
borrowing needs to be brought under control to balance the books
and avoid a loss of confidence in the UK economy. If there was one
prize on offer in the Budget it was the promise that the Great
Satan of inflation would be brought back under control once more.
Inflation is the enemy of both savings and investment returns. In
real terms everyone is poorer when inflation is this high.... more Inflation is high and almost out of control, we are in recession and unemployment is forecast to rise next year while government borrowing needs to be brought under control to balance the books and avoid a loss of confidence in the UK economy. If there was one prize on offer in the Budget it was the promise that the Great Satan of inflation would be brought back under control once more. Inflation is the enemy of both savings and investment returns. In real terms everyone is poorer when inflation is this high. Few portfolios will have been able to beat the current rate of inflation and while pensioners will be protected to some degree by inflation-linked increases many will be worried about what the future holds. The hope is that inflation will begin to subside by the middle of next year and Bank of England Governor has already talked about his hope that inflation will be back on course, at 2% or less, in the forseeable future. So the medicine is bitter, there is little sugar yet but there is a reluctant acceptance that inflation must be tackled if everyone is to benefit long term. less


FCA censures ex-CEO for money laundering failings
The FCA said that between 20 August 2010 and 21 July 2014, the bank
failed to put in place adequate anti-money laundering systems and
in 2015 failed to notify the authority of a suspected fraud. In
relation to Mr Prodhan, who now lives in Bangladesh, the FCA said
that between 7 June 2012 and 4 March 2014, he failed to take
"Reasonable steps" to assess and mitigate the AML risks arising
from a "Culture of non-compliance among SBUK's staff." The FCA said
he also failed to ensure that there was a clear allocation... more The FCA said that between 20 August 2010 and 21 July 2014, the bank failed to put in place adequate anti-money laundering systems and in 2015 failed to notify the authority of a suspected fraud. In relation to Mr Prodhan, who now lives in Bangladesh, the FCA said that between 7 June 2012 and 4 March 2014, he failed to take "Reasonable steps" to assess and mitigate the AML risks arising from a "Culture of non-compliance among SBUK's staff." The FCA said he also failed to ensure that there was a clear allocation of responsibilities to oversee SBUK's branches and he also failed to properly oversee, manage and resource SBUK's Money Laundering Reporting Officer function. The regulator said that as a result of the failings, SBUK's staff did not appreciate the need to comply with AML requirements and the MLRO function was "Ineffective" in monitoring their compliance. The FCA said today that initially it decided to impose a financial penalty of £76,400 on Mr Prodhan in May 2018. Mr Prodhan appealed the case to the Upper Tribunal, where proceedings have been delayed significantly as a result of the pandemic and limitations on Mr Prodhan's ability to travel to the UK from Bangladesh, where he now lives. The FCA said that while it considers the financial penalty to be appropriate, there were now "Exceptional circumstances" for the case to be resolved by agreement, including the lack of any prospect of enforcing payment of a financial penalty. Mark Steward, executive director of enforcement and market oversight at the FCA, said: "Mr Prodhan failed to maintain proper anti-money laundering systems and allowed a culture of non-compliance among the bank's staff."While a financial penalty was appropriate in this case, prolonged litigation to enforce a penalty that is unlikely to be paid against a person who may not be able to travel to the UK to explain himself in person to the Upper Tribunal is neither practical nor fair. less


3 in 4 advisers fail to evidence Financial Planning value
In an adviser survey on the impact of the Consumer Duty, wealth
consultancy NextWealth says that advisers are too focused on
investment performance. NextWealth surveyed more than 400 financial
advisers in the summer about how they document their value to
clients. The next most column evidence sent to clients to prove
value was milestones against client goals and objectives, reported
by just under half of advisers. Heather Hopkins, managing director
of NextWealth, said: "Relying on performance data to evidence... more In an adviser survey on the impact of the Consumer Duty, wealth consultancy NextWealth says that advisers are too focused on investment performance. NextWealth surveyed more than 400 financial advisers in the summer about how they document their value to clients. The next most column evidence sent to clients to prove value was milestones against client goals and objectives, reported by just under half of advisers. Heather Hopkins, managing director of NextWealth, said: "Relying on performance data to evidence value is incredibly risky, particularly when markets are so volatile. Not only does it put too much emphasis on market conditions, it fails to measure the planning and emotional support that clients value most from working with a financial adviser." The report also surveyed 302 consumers who pay for on-going advice and conducted in-depth interviews with 10. NextWealth said some of the metrics advisers can use to ask clients how they measure value is through surveys, tracking time spent, tagging client objectives in the CRM and tracking goals set and goals achieved at a firm level. Ms Hopkins said: "Advisers struggle with the intangible nature of documenting value. Performance against benchmarks is easy to collate and report but it fails to assess the true value of Financial Planning and advice." The report looked at how prepared advice firms are for the FCA's new Consumer Duty regulations and addressing. NextWealth carried out a quantitative survey of 327 financial advice professionals in August, with a top-up survey of 102 financial advisers conducted in October 2022. less


Autumn Statement: Planners react
He added: "The reductions to CGT limits and dividend allowances are
likely to see a review of taxable General Investment Accounts and
their overall tax efficiency."I am not surprised that this has been
looked at as an opportunity to raise more tax and is an opportunity
for Planners to look again at what can be achieved. She said: "This
was a far-reaching Autumn Statement with a lot to take account of
and factor into short- and long-term Financial Planning. None of
these changes come in with immediate effect... more He added: "The reductions to CGT limits and dividend allowances are likely to see a review of taxable General Investment Accounts and their overall tax efficiency."I am not surprised that this has been looked at as an opportunity to raise more tax and is an opportunity for Planners to look again at what can be achieved. She said: "This was a far-reaching Autumn Statement with a lot to take account of and factor into short- and long-term Financial Planning. None of these changes come in with immediate effect so tax year end planning will be crucial."The reduction in the dividend tax allowance next tax year means that those in receipt of dividends, that are not in a wrapper such as a pension or ISA, will see increased taxation over the next two years. "With the capital gains tax allowance reducing it is worth considering realising gains this tax year. Care needs to be taken when doing this which is where taking good financial advice can really add value."Even the changes to income taxation will mean that for those that have control over their income it may be wise to choose to access funds in a different way. "Many with smaller investments will be pulled into a requirement to fill in self-assessments due to the Consumer Gains Tax and dividend allowance reductions. Potentially, a lot of admin for a small amount of tax for HMRC." Wealth management trade body PIMFA called on the Chancellor to keep tax reforms under review following the statement. Liz Field, chief executive of PIMFA, said: "While we support the Government's long-term aim to stabilise the country's finances and balance the books, regular changes to tax policy can be unhelpful and create confusion for those trying to save for their financial future or leave a legacy to their loved ones. Clarity in terms of tax policy allows people to save and invest for the future, safe in the knowledge that there will be few sudden changes that require them to adjust their own plans."The measures outlined in the Chancellor's statement today will clearly impact on the ability of UK savers to put money aside as well as incentivising them to do so. As a result more people will be paying more tax with those in the £100,000 - £150,000 range having the most to consider. Where income comes mainly from employment then pension contributions may be a route to lessen tax bills for the average taxpayer. less


Autumn Statement: Tax-free allowance for dividends halved
Review of dividend allowances could lead Financial Planners to review approach to General Investment Accounts. Eight in ten adults said they would back tax rises to shore up the nation’s finances. Only 25% would back an increase in Dividend Tax, according to a survey by Opinium on behalf of AJ Bell. The dividend allowance was reduced from £5,000 to £2,000 in 2017.


Autumn Statement: Hunt honours State Pension Triple Lock
While figures are yet to be confirmed, wealth manager Quilter
recently forecast that if the Triple Lock was honoured the State
Pension would rise to £203.85 from April and potentially £220 by
2024. The basic state pension would also be increased to £156.20 a
week next year from its current level of £141.85. The Triple Lock
refers to a 2019 Conservative Party manifesto pledge that the State
Pension would rise in line with the highest of: the previous
September's inflation figure, the average wage increase,... more While figures are yet to be confirmed, wealth manager Quilter recently forecast that if the Triple Lock was honoured the State Pension would rise to £203.85 from April and potentially £220 by 2024. The basic state pension would also be increased to £156.20 a week next year from its current level of £141.85. The Triple Lock refers to a 2019 Conservative Party manifesto pledge that the State Pension would rise in line with the highest of: the previous September's inflation figure, the average wage increase, or 2.5%. Tom Selby, head of retirement policy at AJ Bell, said the Autumn Statement brought to an end the uncertainty over whether or not the State Pension Triple Lock will be honoured next year. Steven Cameron, pensions director at Aegon, said there remained a question mark over whether the Triple Lock will be retained longer term. The government will no doubt have weighed up the reaction of pensioner voters if they scrapped the Triple Lock for a second consecutive year in the run-up to the next general election. The Bank of England has predicted inflation may drop to 7.9% by Q3 next year, so keeping the Triple Lock in place may prove less expensive from 2024. Given the turbulence in government decision making we have seen in recent times, we know there are no real guarantees that the Triple Lock will go untouched for a second year. less


Autumn Statement: Chancellor drags more into 45p-rate tax
The additional-rate income tax threshold will be cut from £150,000
to £125,140, a move which will mean more higher earners will be
subject to the 45p tax rate. An average earner with a salary of
£33,000 in 2021/22 before the income tax threshold freeze began
will end up paying £27,378 in income tax as a result of the policy
being extended to 2027/28, according to analysis from AJ Bell.
Keith Churchouse, founder at Chartered Financial Planner firm
Chapters Financial in Surrey, said the income tax rise for... more The additional-rate income tax threshold will be cut from £150,000 to £125,140, a move which will mean more higher earners will be subject to the 45p tax rate. An average earner with a salary of £33,000 in 2021/22 before the income tax threshold freeze began will end up paying £27,378 in income tax as a result of the policy being extended to 2027/28, according to analysis from AJ Bell. Keith Churchouse, founder at Chartered Financial Planner firm Chapters Financial in Surrey, said the income tax rise for those earning over £125,140 will not be welcome and the freezing of income tax allowances to 2028 will also see many more pushed into higher tax bands. "There are several ways this could be achieved - through pension contributions, assigning assets to others or making more use of tax wrappers. Those with a higher risk appetite may simply use the 30% relief available through venture capital schemes to reduce some of their increased tax liability." The changes to income tax were not a surprise to wealth manager Charles Stanley, who rated a freezing of the bands and the lowering of the 45p additional rate band as the two most likely changes to be made by the Autumn Statement. Rob Morgan, chief investment analyst at Charles Stanley, said the freezing of the income tax thresholds will highlight the advantages of tax efficient wrappers. He said: "Income tax was always going to be in the government's sights. With a gaping hole in the public finances, it's an easy target for the Treasury. Putting the thresholds on ice, and lowering the 45p tax band, is a double whammy and will raise billions for the Treasury. Millions will be in the higher and additional rate tax bands in the coming years. And high earners will really feel the hit, with a higher proportion of their income subject to the 45% tax rate. Tax bills are only going in one direction for millions of people and that is up."This makes tax planning even more critical. " Laura Suter, head of personal finance at AJ Bell, said: "The move means that rather than rising with inflation, the point at which people start paying tax, and at which the higher rate tax kicks in, will be stuck at their current levels until 2027/28. less


Autumn Statement: Chancellor extends IHT threshold freeze
For homeowners, there is an additional residence nil-rate band for
inheritance tax, currently £175,000 when the family home is
inherited by their direct descendants such as children or
grandchildren on their passing. With the appropriate planning in
place, it is possible for a couple to leave up to £1m of wealth to
their children or grandchildren without liability to inheritance
tax, depending on the value of the net estate. Not only does it
have tax benefits, it also means you get to see them enjoy their... more For homeowners, there is an additional residence nil-rate band for inheritance tax, currently £175,000 when the family home is inherited by their direct descendants such as children or grandchildren on their passing. With the appropriate planning in place, it is possible for a couple to leave up to £1m of wealth to their children or grandchildren without liability to inheritance tax, depending on the value of the net estate. Not only does it have tax benefits, it also means you get to see them enjoy their gifts while you're still around. Gifts given more than seven years before your death will not attract IHT. "You also get a gift allowance of £3,000 each year that falls out of your estate immediately for inheritance tax purposes. You can also give small gifts of up to £250, and specific gifts for family weddings. Linda Wallace, director at mutual Wesleyan Financial Services, said it is more important than ever for people to make the most of their allowances when it comes to estate planning. She said:"Inheritance tax has once again been raided for the Treasury's coffers. The threshold for paying inheritance tax has been frozen since 2009. "While £325,000 may sound a lot, those who own property are likely to find they are close to, or exceed this limit, and may not be able to leave their loved ones as much as they'd hoped when the time comes." Over eight in ten of UK adults back tax increases to help improve the UK's public finances, according to a survey by Opinium on behalf of investment platform AJ Bell. Just 21% said they would back a rise in Inheritance Tax. less


Autumn Statement: Chancellor slashes CGT allowance
There is currently a Capital Gains tax (CGT) annual allowance of £12,300, on which an individual pays no tax. This tax-free allowance will be halved to £6,000 for the 2023/4 tax year, with a further cut to £3,000 in the 2024/5 tax year. The top 100 taxpayers in the UK pay £3.83bn a year in income and capital gains tax. The top 10 taxpayers paid over £45.53bn last year. Over eight in ten (81%) of adults back tax increases to help improve the UK’s public finances.


Casebook: Estate planning following a shock bereavement
... more Casebook looks at how Mr Bonnett helped a well-off professional client cope with challenging estate planning issues following a shock bereavement. The client was a pension lawyer with many decades of experience who had attended one of the sessions which had been set up by his employer. The Casebook, a regular feature in each issue, highlighted how often imparting simple knowledge can have a positive impact. It also looked at how clients need to understand how planning can change the lives of the next generations. less


Nearly 2,500 register for Festival of Financial Planning
The PFS, the professional body for Chartered Financial Planners, has released final details of the event programme. Paralympian Baroness Tanni Grey-Thompson will be the keynote speaker and will talk about her life and overcoming challenges. The full programme is now live onwww.pfsfestival2022.org and includes technical, skills and learning sessions from specialists and practitioners. Sessions include: FCA’s priorities for the consumer investment sector.


New Gen Z adviser SpringGen hits £1m milestone
It is now managing £1million in funds under advice. It was founded
last year at Acumen's Aberdeen base by Chartered Financial Planner
Jenny Madhoo, who developed the concept over 18 months. She was
inspired to set up SpringGen after becoming frustrated with the
lack of advice for young people. Jenny Madhoo said: "Now more than
ever, with rising inflation and other cost of living challenges, it
is crucial that young professionals have access to qualified
financial advice at an affordable price. We are passionate... more It is now managing £1million in funds under advice. It was founded last year at Acumen's Aberdeen base by Chartered Financial Planner Jenny Madhoo, who developed the concept over 18 months. She was inspired to set up SpringGen after becoming frustrated with the lack of advice for young people. Jenny Madhoo said: "Now more than ever, with rising inflation and other cost of living challenges, it is crucial that young professionals have access to qualified financial advice at an affordable price. We are passionate about plugging this advice gap." SpringGen offers advice on investments, pensions and insurance as part of its Money Management service. The service has been dubbed "a new style of Financial Planning for the next generation" and has initial fees from £375 and ongoing investment fees from 0.75%. In the past year the business has welcomed its first apprentice, Kieran Knowles, who studied for one-year under the foundation Apprenticeship in Business Skills, equivalent to Higher. Ms Madhoo - who recently won the NextGen Innovator of the year award - spent 10 years working at traditional financial services companies, before joining Acumen Financial Planning which is based in Westhill, Aberdeenshire. She said SpringGen is passionate about nurturing and investing in the future generation and was eager to act as a support partner by guiding pupils and developing their skills in the finance industry. less


Divorce rise increasing financial vulnerability risk - warning
Divorce, Dissolution and Separation Act 2020 came into effect
across England and Wales. It enabled married couples to issue
divorce proceedings without assigning blame. It was the first
significant change in divorce law for 50 years. It has led to a
spike in no-fault divorce applications, contributing to delays and
backlogs in the civil law courts. Legal & General supported the
production of the good practice guide entitled “Advising and
supporting clients going through Divorce in England and Welsh. To
download... more Divorce, Dissolution and Separation Act 2020 came into effect across England and Wales. It enabled married couples to issue divorce proceedings without assigning blame. It was the first significant change in divorce law for 50 years. It has led to a spike in no-fault divorce applications, contributing to delays and backlogs in the civil law courts. Legal & General supported the production of the good practice guide entitled “Advising and supporting clients going through Divorce in England and Welsh. To download a copy of the guide, visit www.fvtaskforce.com, www. fvtaskForce.com to download a version of the guide,www.f Vogue.com. less


Crisis forcing parents to bring forward wealth transfer plans
More than a fifth of parents said they were changing their wealth
transfer plans. Some are bringing forward their inheritance plans
to help their children now. Seven out of 10 said they had already
given children money to help them through the current difficult
times, or are planning to pass money to them early. A third of
parents said they were worried about the ability of their children
or grandchildren to cope and more than one in ten said they were no
longer able to help them financially. Only a fifth are... more More than a fifth of parents said they were changing their wealth transfer plans. Some are bringing forward their inheritance plans to help their children now. Seven out of 10 said they had already given children money to help them through the current difficult times, or are planning to pass money to them early. A third of parents said they were worried about the ability of their children or grandchildren to cope and more than one in ten said they were no longer able to help them financially. Only a fifth are confident they can deal with the cost of living impact on their own finances, while a tenth said they were receiving financial support to help with higher living costs. William Stevens, head of Financial Planning at Killik & Co, said: "Living costs are rising at a pace that we haven't seen for decades, so it's not surprising that people are having to make some difficult financial decisions." He said parents want to make a positive contribution when they pass on wealth and that desire does not change during a time of economic uncertainty. He said: "Our research shows that many are bringing forward inheritance plans to help their children and some are having to rethink their plans because of the rising cost of living. Parents naturally want to put their children first, but it's vital that they consider their own needs." Killik & Co commissioned Opinium Research to question 2,100 parents about their wealth transfer plans between 1 and 4 October 2022.. less


Editor’s Comment: FSCS cost and benefits must balance
Another firm failing can only mean the FSCS stepping in to pay the
bill and extra cost for planners to meet the FSCS levy. While the
FSCS and others will no doubt chase assets at these failed firms to
try and recoup losses, most of the directors will get away lightly.
The fact remains that for consumers and investors the FSCS mark is
still worth its weight in gold in terms of building investor
confidence. Whatever the pain, the FSCS guarantee of protection is
an essential promise for small investors. The challenge... more Another firm failing can only mean the FSCS stepping in to pay the bill and extra cost for planners to meet the FSCS levy. While the FSCS and others will no doubt chase assets at these failed firms to try and recoup losses, most of the directors will get away lightly. The fact remains that for consumers and investors the FSCS mark is still worth its weight in gold in terms of building investor confidence. Whatever the pain, the FSCS guarantee of protection is an essential promise for small investors. The challenge will be to stop the FSCS being overrun with claims because the CMCs are chasing every disgruntled investor they can find. At present, the FSCS is a cornerstone of the investor protection regime and it would be step backward if it had to be diluted or restricted to make it more affordable. I do not envy the FSCS board in trying to strike the right balance on this however one must be achieved if the FSCS is to have a future. less


2 in 3 advisers rely on pension drawdown
The majority of advisers say drawdown represents 25% to 50% of
their firms' advisory business, according to the survey by
actuarial consultants AKG. AKG surveyed 200 advisers on the growth
of Centralised Retirement Propositions in the advice market.
Adviser firms said rising inflation and increased market volatility
was "Driving evolution" in adviser firms' CRP processes and
propositions. A major challenge, according to many advice firms, is
that advising clients in retirement and drawdown is "More risky and... more The majority of advisers say drawdown represents 25% to 50% of their firms' advisory business, according to the survey by actuarial consultants AKG. AKG surveyed 200 advisers on the growth of Centralised Retirement Propositions in the advice market. Adviser firms said rising inflation and increased market volatility was "Driving evolution" in adviser firms' CRP processes and propositions. A major challenge, according to many advice firms, is that advising clients in retirement and drawdown is "More risky and more expensive" than advising clients in accumulation, with risks increasing once clients begin to take income. AKG's Research Briefing, sponsored by Investec Wealth & Investment is called: 'Coming back to the table on CRPs'. The briefing is drawn from research with 200 advisers and in-depth interviews with 17 representatives from a range of adviser firm types. The research found that: CRP adoption - Around three-quarters of advisers surveyed said their firm had already launched a separate/distinct CRP. Meanwhile, one-fifth said their firm had not yet launched a CRP but were planning to do so in the next 12 months. In-house vs. outsourced investment - Just over three-fifths of advisers said their firm's CRP is outsourced to a discretionary wealth manager, with the remainder saying their firm has discretionary permissions and manages its CRP in-house. CRP composition - More than half of advisers said their CRP includes an investment policy which reflects the risks associated with drawdown and 53% said their firm's CRP included consideration of guaranteed income. less


Guy Opperman returns to DWP
The last person to hold the Pensions Minister portfolio was Alex Burghart MP. Mr Opperman is seen as a popular and experienced figure and one of the longest serving pensions ministers in recent times. He served as the Parliamentary Under Secretary of State for Pensions and Financial Inclusion between 2017 and 2022. Key ministerial appointments by new Prime Minister Rishi Sunak at the DWP are: Mel Stride and Laura Trott.


FSCS declares SIPP adviser in default
The firm, Solutions Financial Services (UK) Ltd, was dissolved five years ago. It is the latest in a string of SIPPs and pensions advisers to have been declared as failed by the compensations scheme. The FSCS said there are two claims against the firm currently being processed. These are related to investment and SIPP products and are not BSPS related. The firm (FRN:402668) was an appointed rep.


Obituary: Ian Taylor - punk rocker entrepreneur
Ian once said that "people say it's an online business, but it's
the offline stuff which is most difficult". Ian saw Transact, as he
did many things, through the lens of the music he loved. Transact
CEO, Jonathan Gunby, who worked closely with Ian, as friend and
colleague, for over 30 years, remembers, "Ian was the smartest and
one of the funniest people I have ever met. " IntegraFin CEO Alex
Scott, who joined the business in 2009 said "From the first time I
met Ian back in 1999, when Transact was being created,... more Ian once said that "people say it's an online business, but it's the offline stuff which is most difficult". Ian saw Transact, as he did many things, through the lens of the music he loved. Transact CEO, Jonathan Gunby, who worked closely with Ian, as friend and colleague, for over 30 years, remembers, "Ian was the smartest and one of the funniest people I have ever met. " IntegraFin CEO Alex Scott, who joined the business in 2009 said "From the first time I met Ian back in 1999, when Transact was being created, through the years of building a successful business, to the last time I saw him in retirement, Ian remained the same grounded individual, funny, erudite and generous in thought and deed. " Transact and parent company IntegraFin continued to grow rapidly under Ian's leadership and successfully IPO-ed on the London Stock Exchange main market in 2018. Ian continued as Chief Executive until March 2020 when he stepped back a little before fully retiring in 2021. We'd like to think that he could rest in peace, but that wouldn't be our Ian, industry visionary and original punk rocker. less


Global Planning body FPSB appoints new CEO
The Denver-based body has 203,000 members worldwide including 1,000 CFP Professionals in the UK. He will be promoted from his current role of head of stakeholder engagement. Mr De Gori has more than 20 years experience in financial services. He previously served as chief executive officer of Financial Planning Association of Australia (FPA) and the sixth largest FPSB Affiliate within the FPSB Network. For six years, he led teams.


Advisers face ‘difficult client conversations’ over cash gifts
Research among more than 200 adviser firms for Just Group's 2022
Care Report found that almost half - 42% - thought the
price-squeeze would increase the number of clients looking to give
a living inheritance in the short term. By contrast less than a
quarter - only 24% - thought the cost-of-living-crisis would
decrease the number of their clients looking to give a living
inheritance. Two-thirds of advisers who reckoned clients would wish
to hand cash to their grown-up kids said they would need to
challenge their... more Research among more than 200 adviser firms for Just Group's 2022 Care Report found that almost half - 42% - thought the price-squeeze would increase the number of clients looking to give a living inheritance in the short term. By contrast less than a quarter - only 24% - thought the cost-of-living-crisis would decrease the number of their clients looking to give a living inheritance. Two-thirds of advisers who reckoned clients would wish to hand cash to their grown-up kids said they would need to challenge their clients' plans. The main reason for challenging clients was because the gift could leave them short of income in later life, with two-thirds of advisers citing that. Just over half mentioned that clients would not have enough money to give some to children. Meanwhile just over a third said they would challenge clients because clients had not considered care costs in later life. Stephen Lowe, group communications director at Just Group, said: "Understandably, people want to help their children financially, but advisers have an important role managing their clients' decisions to hand over cash if it could leave them short in the future." He said advisers could be facing some difficult conversations with their clients because future care costs are what could be called a 'known unknown' that looms large but is currently impossible to quantify. less


Hunt heading for pension triple-lock row
October's CPI is due to be published tomorrow and is expected to be
around 10%. The triple lock would mean that the state pension would
rise in line with this figure, almost certain to be the highest of
the three measures used for the triple-lock. That would give
retired people a hefty increase in their state pension but last
year the triple-lock - which uprates state pensions in line with
whichever is highest of 2.5%, CPI inflation and wages growth - was
suspended. Pensioners were instead given an increase... more October's CPI is due to be published tomorrow and is expected to be around 10%. The triple lock would mean that the state pension would rise in line with this figure, almost certain to be the highest of the three measures used for the triple-lock. That would give retired people a hefty increase in their state pension but last year the triple-lock - which uprates state pensions in line with whichever is highest of 2.5%, CPI inflation and wages growth - was suspended. Pensioners were instead given an increase of just 3.1%. Speaking in the House of Commons following his reversal of the mini-Budget yesterday, the Chancellor said he would not be making "Commitments on any individual policy areas" before adding "But every decision we take will be taken through the prism of what matters most to the most vulnerable." There's no doubt that a Chancellor struggling to fill an estimated £40bn black hole in the government's finances would be tempted to abandon or water down the triple-lock. Especially as tomorrow's inflation figures are expected to be in double figures and much higher than average earnings growth, which in August came in at 5.4%. Choosing an earnings-linked increase instead could save the Treasury an estimated £4bn-£5bn a year. That's based on Office for Budget Responsibility estimates which suggest that every 1 percentage point increase in the value of the state pension costs the Treasury somewhere in the region of £1bn. But such a move would be controversial, especially with the many pensioners banking on a 10% or more increase, said Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown. Ms Morrissey said: "The fact that the new Chancellor seems reluctant to confirm the triple-lock is concerning. State pension uprating is usually confirmed in November so there will be an anxious wait for many pensioners to see what they will get." Tom Selby, head of retirement policy at AJ Bell, said if the triple-lock was canned for a second year in a row, it would be hugely controversial and add to the political pressure being piled on the government. Mr Selby said: "Clearly no politician wants to head towards a general election having applied a real-terms cut to pensioners' incomes, and you would think Number 10 will be fighting hard against such a measure." less


FSCS steps in as SIPP adviser fails
Thompson Prior LLP was declared failed by the FSCS this week. The
firm joins a growing list of failed firms which specialised in
pensions and SIPP advice. The failure declaration opens the door to
clients of the firm (FRN 207510) to claim compensation. There are
currently five claims against the firm, mostly pensions related.
The claims are not believed to be related to the British Steel
Pension Scheme. The firm was based in Bridgnorth, Shropshire. It
was first registered with the FCA and is no longer authorised... more Thompson Prior LLP was declared failed by the FSCS this week. The firm joins a growing list of failed firms which specialised in pensions and SIPP advice. The failure declaration opens the door to clients of the firm (FRN 207510) to claim compensation. There are currently five claims against the firm, mostly pensions related. The claims are not believed to be related to the British Steel Pension Scheme. The firm was based in Bridgnorth, Shropshire. It was first registered with the FCA and is no longer authorised to provide regulated activities. The company was firstRegistered in 2001. less


Senior FCA exec Mark Steward to leave the regulator
The senior executive has been leading the FCA's data-led approach
to market oversight since 2015. Since joining the City watchdog
seven years ago, Mr Steward has led the delivery of some of the
FCA's most complex, high-profile, and precedent-setting enforcement
cases, with many notable successes against major global financial
institutions and individuals. He also led the FCA's listing
authority and oversight of the UK's publicly traded markets, a role
in which he developed the FCA's data-led approach to market... more The senior executive has been leading the FCA's data-led approach to market oversight since 2015. Since joining the City watchdog seven years ago, Mr Steward has led the delivery of some of the FCA's most complex, high-profile, and precedent-setting enforcement cases, with many notable successes against major global financial institutions and individuals. He also led the FCA's listing authority and oversight of the UK's publicly traded markets, a role in which he developed the FCA's data-led approach to market oversight. He has been at the forefront of the FCA's anti-scam marketing campaign, known as 'Scamsmart'. Nikhil Rathi, chief executive of the FCA, said: "Mark has brought his formidable experience as a regulator and as a litigator to the FCA, delivering significant enforcement cases across a broad spectrum, as well as the FCA's data-led approach to market oversight." He noted Mr Steward's "Abiding belief in fairness", that markets must be clean if the economy is to thrive and in doing the right thing on behalf of consumers. He added: "He has shown that the FCA is willing to take on challenging cases, will use the full extent of our powers and will deliver results that have a real impact for the markets we oversee and for those who rely on them." Mark Steward said: "It has been a privilege to serve the FCA throughout many challenges over the last seven years and, as I move on, to leave behind such a strong team for the future." Mr Steward will leave the FCA in Spring 2023. The global search for his successor will begin shortly, the FCA said. less


What’s left from the mini-budget? More than you think
The Treasury later told the BBC that the controversial plan to
remove the cap was going ahead. Meanwhile, plans to cut National
Insurance contributions and a reduction in stamp duty, which are
already going through Parliament, will also go ahead, as will the
cancellation of the Health and Social Care Levy. A planned increase
to the tax on dividends will also remain. Also set to stay are
increases to Seed Enterprise Investment Scheme limits and reforms
to Company Share Option Plans. Those changes came after the... more The Treasury later told the BBC that the controversial plan to remove the cap was going ahead. Meanwhile, plans to cut National Insurance contributions and a reduction in stamp duty, which are already going through Parliament, will also go ahead, as will the cancellation of the Health and Social Care Levy. A planned increase to the tax on dividends will also remain. Also set to stay are increases to Seed Enterprise Investment Scheme limits and reforms to Company Share Option Plans. Those changes came after the Government had already axed plans to scrap the 45p rate of income tax for top earners and had U-turned on a promise not to increase Corporation Tax. The biggest saving for the Government from the mini-budget U-turn was keeping plans to raise Corporation Tax to 25%. The previous Chancellor had proposed to scrap the increase and maintain Corporation Tax at 19%. Keeping the increase will raise £18.7bn by 2026-27. Meanwhile scrapping the cut in the basic rate of income tax from 20p to 19p will save £5.9bn. Keeping the planned increase to the tax on dividends will raise £0.9bn while shelving the changes to the IR35 rules will add £2bn to the Treasury's coffers. Cancelling a plan to reintroduce tax-free shopping for tourists will raise £2.1bn while allowing alcohol duties to rise instead of being frozen in February will add £0.6bn. But Mr Hunt must still find billions more in savings with experts believing there is still a black hole of up to £40bn in the public finances to fill. less


New Financial Planning co-ordinator for advice firm
Kellie Williamson joins the 21-strong team at Acumen which is based
in Burscough. Ms Williamson will support the firm’s team of
financial advisers. Annual turnover is up 36% and the firm has
£395m in funds under management, up 12.8% on the same time last
year. Acumen Financial Partnership offers a range of financial
advice services including investment guidance, life insurance,
pension, pensions, mortgages, mortgages and equity release. The
company has just had its most successful year. The firm was formed... more Kellie Williamson joins the 21-strong team at Acumen which is based in Burscough. Ms Williamson will support the firm’s team of financial advisers. Annual turnover is up 36% and the firm has £395m in funds under management, up 12.8% on the same time last year. Acumen Financial Partnership offers a range of financial advice services including investment guidance, life insurance, pension, pensions, mortgages, mortgages and equity release. The company has just had its most successful year. The firm was formed in 2006 and offers and offers a number of services including life insurance and life insurance. less


Fidelity launches 2 bespoke funds for Financial Planner
The FIF - Fidelity Strategic Growth Portfolio has at least 70%
exposure to lower risk investments. Both funds will be managed by
Ayesha Akbar, Caroline Shaw and Sudi Gupta. The Financial Planning
firm says it will blend the two funds and their risk profiles to
meet clients' risk/return objectives. Fidelity has 2.5m customers
globally, operates in 25 countries and has approximately £588bn in
total assets and has around £588billion in total total assets. The
company has 2,000 customers. filed in 25.5million... more The FIF - Fidelity Strategic Growth Portfolio has at least 70% exposure to lower risk investments. Both funds will be managed by Ayesha Akbar, Caroline Shaw and Sudi Gupta. The Financial Planning firm says it will blend the two funds and their risk profiles to meet clients' risk/return objectives. Fidelity has 2.5m customers globally, operates in 25 countries and has approximately £588bn in total assets and has around £588billion in total total assets. The company has 2,000 customers. filed in 25.5million customers worldwide. It operates in 20 countries and operates in 15 countries. It counts Suzi Perry among its clients and has more than 3,000 clients. less


Transact inflows drop but firm shows resilience
Gross inflows for the three months were £1.5bn, down from £1.97bn.
Net inflows to the Transact platform for the financial year ended
30 September 2022 were £4.4bn, down from £4.9bn in 2021. Alex
Scott, chief executive officer said despite the falls he was
pleased with the figures against a backdrop of a "Difficult market
environment." He said: "The Transact platform is utilised by
clients and advisers for long-term Financial Planning Transact
platform outflows have remained relatively stable during the course... more Gross inflows for the three months were £1.5bn, down from £1.97bn. Net inflows to the Transact platform for the financial year ended 30 September 2022 were £4.4bn, down from £4.9bn in 2021. Alex Scott, chief executive officer said despite the falls he was pleased with the figures against a backdrop of a "Difficult market environment." He said: "The Transact platform is utilised by clients and advisers for long-term Financial Planning Transact platform outflows have remained relatively stable during the course of the year. This has contributed to our continued very high retention rate of funds under direction on the Transact platform of 94% for the financial year." The Transact platform's adviser base rose 5% over the year with 7,500 advisers registered at the end of September, 376 higher than 2021. Meanwhile there were 224,700 clients on the Transact platform, up 8% from 30 September 2021 and some 16,000 higher than 2021. Average funds under direction on the platform were £52.5bn, up from an average during 2021 of £47.2bn. Mr Scott said: "We are mindful of the difficult economic environment and the significant volatility in asset markets, however we expect the performance of the Transact platform to remain robust during the forthcoming financial year, with new clients and advisers joining, and continued resilient flows onto the Transact platform." The platform added a Blackrock-run model portfolio service in September to extend its choice of discretionary investment managers. MPS is available exclusively to Transact platform clients. "At a time of economic uncertainty, clients rely even more on the support and knowledge of their financial adviser," Mr Scott said. "We will continue to advance the development of our proprietary software, and we will train users in how to best use the extensive functionality now available. All of this will enable our clients, with their advisers, to stay on track with their long-term financial plans." Transact's parent company Integrafin is involved in an ongoing VAT battle with HMRC. A review by HMRC led to the decision to exclude one of Integrafin's companies from the UK VAT group. less


FCA restricts twice as many investment firms
The restrictions included preventing firms from promoting and
selling certain products or providing specific services like advice
on defined benefit pension transfers. Sarah Pritchard, executive
director of markets at the FCA, said: "We want to see a consumer
investment market where consumers can invest with confidence,
understanding the level of risk they are taking, and where
assertive action is taken when harm is identified."We know that it
will take time to see the full impact of all our interventions,
particularly... more The restrictions included preventing firms from promoting and selling certain products or providing specific services like advice on defined benefit pension transfers. Sarah Pritchard, executive director of markets at the FCA, said: "We want to see a consumer investment market where consumers can invest with confidence, understanding the level of risk they are taking, and where assertive action is taken when harm is identified."We know that it will take time to see the full impact of all our interventions, particularly given the worsening economic environment. " The FCA said it had stopped 17 firms and seven individuals this year attempting to obtain new FCA authorisation in the investment market where so-called phoenixing or lifeboating was suspected. Ms Pritchard said: "In the last year we have maintained our focus on acting assertively and innovatively to tackle harm - we prevented 1 in 5 firms from entering the Consumer Investments market and we have taken action against unauthorised firms with a 40% increase in the number of consumer alerts issued. " The work forms part of the FCA's updated Consumer Investments strategy, which is aimed at helping people invest with confidence, while seeking to reduce the number of people who are persuaded to invest in products that are too risky for their needs and to slow the growth in investment scams. The increased scrutiny of authorisations meant that the number of firms that were not authorised in 2021/22 was 1 in 5, up from 1 in 14 the previous financial year. We are particularly happy to see the FCA taking a more proactive approach against disreputable firms seeking to lifeboat and phoenix, which would otherwise further inflate the costs of the Financial Services Compensation Scheme for good firms - an issue we have repeatedly raised and campaigned on. less


Full Text of Chancellor's statement to MPs
Treasury-led review into how we support energy bills beyond April next year. Review’s objective is to design a new approach that will cost the taxpayer significantly less than planned. Any support for businesses will be targeted to those most affected. And the new approach will better incentivise energy efficiency. There remain many difficult decisions to be announced in the Medium-Term Fiscal Plan on October 31st.


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