Good morning and welcome to your Morning Briefing for Friday 8 November 2024. To get this in your inbox every morning click here.
Firms in the dark on commercial pensions dashboards delivery date
Firms seeking to operate commercial pensions dashboards services (PDS) have no timescale when this will happen, despite the Financial Conduct Authority publishing rules they must follow when designing and operating them.
The FCA set out rules for pensions dashboards service firms in a policy statement published yesterday (7 November).
Rachel Vahey, head of public policy at AJ Bell, said the lack of timescale is a “huge letdown for customers”.
Closing the advice gap
How do we close the advice gap?
That’s the million-dollar question I’ve heard debated time and again since I joined Money Marketing, writes news editor Dan Cooper.
The consensus is that artificial intelligence and the introduction of new technology will free up advisers’ time and enable them to take on and serve more clients.
But could it be the banks that hold the key to closing the gap?
Quote Of The Day
There are some more bullish voices out there, including Goldman Sachs who have forecast the UK base rate to fall to just 2.75% by next Autumn. The fact the decision to cut rates was almost unanimous will put some powder in this argument
– Laith Khalaf, head of investment analysis at AJ Bell, comments on latest interest-rate decision from the Bank of England
Stat Attack
Research from Canada Life reveals the UK cities with the highest proportion of adults who do not have a will in place. Leeds, Sheffield and Nottingham top the list, while
people in Brighton, Cardiff, London and Newcastle are the most prepared when it comes to making a will. However, a significant number still have nothing in place.
49%
of the population have discussed their end-of-life wishes with their loved ones. While
44%
have not written a will, nor are they currently in the process of doing so. When asked why they do not have a will in place,
26%
said they do not have enough assets or wealth to warrant making a will, closely followed by
20%
who believe they still have plenty of time to make one.
15%
do not want to pay to write a will, while
14%
believe their loved ones will inherit their assets automatically.
Source: Canada Life
In Other News
The Pension Protection Fund (PPF) has published its fifth Responsible Investment report, which reinforces its commitment to promoting sustainability in the pensions industry and demonstrates the power industry engagement and collaboration across its asset managers, portfolio companies, industry bodies and peers has had over the last 12 months.
The annual report summarises the stewardship and governance activities carried out by the PPF that have not only driven greater participation and engagement industry wide, but also have improved reporting, risk analysis, transparency and driving positive change.
Barry Kenneth, chief investment officer at the PPF, said: “The last 12 months has been a period of evolution and engagement, and this report outlines our continued commitment to align with the Stewardship Code, showcasing the steps we have taken and measures we have advanced to protect and drive value across our portfolio.
Isio, a provider of pensions and employee benefits consultancy, has announced the launch of its new individual service designed to streamline support for NHS employees affected by the McCloud pensions tax roll-back.
The McCloud remedy addresses age discrimination in the 2015 public service pension reforms. It involves rolling back the 2015 scheme benefits into the previous final salary schemes for affected public-sector members.
But many senior NHS staff will have to also revisit up to seven years of self-assessment tax forms by 31 January 2025 (or three months after being notified if later).
The new service will help these NHS Pension Scheme members, who will receive a Remediable Pension Savings Statement (RPSS), to collect the required data and submit it to HMRC.
Isio’s service manages the entire process, allowing members to easily claim tax refunds where appropriate (and in some cases pay additional tax charges). The service is to be also available for senior police employees affected by the same issue.
From Elsewhere
Bond rebound uncertain as Trump plans overshadow Fed rate cuts (Reuters)
AI may displace 3m jobs but long-term losses ‘relatively modest’ (The Guardian)
Warren Buffett’s Apple share sales and cash pile spark intrigue over motives (Financial Times)
Did You See?
Greg Neall, chartered financial planner at Wake Up Your Wealth, chides journalists, experts, and commentators over their “scaremongering” articles in the lead up to the autumn Budget.
He writes: It’s impossible to count the number of headlines written over the last few months declaring the 25% tax-free pension lump sum was in danger of being scrapped in last week’s Budget to boost clicks and comments.
Anyone with a working brain and the slightest bit of political nous could see there was no way the chancellor would do something so politically suicidal, especially after the Winter Fuel Allowance fiasco. Shame on those claiming it was ever likely.
There was also a glut of poorly-researched pieces on how the lump sum allowance might come down to £100,000.
Read the full article here.
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