ConsumerDuty will make ongoing fees hard to justify
The upcoming Consumer Duty is likely to make ongoing advice fees hard to justify in the short to medium-term future.This is the view of PIMFA head of public affairs Simon Harrington, who spoke at the Money Marketing’s Retirement Summit on 10 June. “It will force firms to look inwardly in the way that they have never done before, because the advice market is quite uncompetitive,” he said.
A decade of the SJP Academy: changing the face of advice
Features writer Amanda Newman Smith spoke to Andy Payne who is head of St James’s Place Academy. The reason? It opened its doors 10 years ago. Her discussion with Payne touched on the academy’s influence and where he hopes it will go in the future. Since inception, the academy has helped to start 658 new advice businesses. These operate as partner practices of SJP, which have contributed to the firm’s growth.
Top to bottom: Is vertical integration good for advisers?
Chief reporter Lois Vallely’s cover for the June issue on Aviva’s purchase of Succession did very well. Aviva caused quite a stir when it purchased consolidator Succession Wealth for £385m in March this year. Deals in the adviser market have become almost routine and it would be unsurprising if we write another cover on the theme of consolidation in the future.
CII potentially ‘bankrupt’ from botched IT spending
Jean-Baptiste Andrieux has been hard at work covering the inner workings of the Chartered Insurance Institute (CII). His most popular story was about the body being potentially bankrupt from misguided IT spending. The IT budget was initially agreed at £4.4m according to internal sources but is alleged to have gone four times over. A spokesperson at the CII said that the IT transformation programme started in 2018.
Bailey: ‘Please don’t think FCA sat on British Steel info’
The past can come back to haunt you if you are a top-flight regulator. Andrew Bailey pleaded with MPs to realise the regulator was active during the British Steel Pension Scheme (BSPS) saga. The Public Accounts Committee questioned the Bank of England governor in his capacity as former head of the Financial Conduct Authority on 13 June. Bailey was giving evidence on the British Steel scandal.
Malcolm Kerr: Fair value may be £60 asparagus, not 2% a year
How do you connect asparagus and advice fees? Malcolm Kerr came up with one in his column on charges. It was a thought provoking read and inspired much comment. His main argument is that financial advisers have something in common with posh restaurants in that demand exceeds supply. That gives the market its unique characteristics that spills over into fees.
FCA rules out new consumer pensions regulations
It may surprise readers but the Financial Conduct Authority does not always introduce regulations. It has ruled out unveiling new rules to drive improvements in the pensions consumer journey. In a feedback statement with the Pensions Regulator (TPR), the FCA said more can be done to support consumers within the current regulatory framework. It was published in response to a call for input (CFI) on what can be done to help engage consumers.
FOS hires new chief executive to replace Delfas
Things continue to change at the Financial Ombudsman Service. It has appointed Abby Thomas as the chief executive and chief ombudsman. Thomas, 43, will take up her new role in the Autumn. She will replace Nausicaa Delfas, who has been acting as chief executive and chief ombudsman on an interim basis since May 2021. There is much work to do.
Standalone platforms won’t exist in future, Seccl head says
Out with the old, in with the new as far platforms go according to Seccl chief executive David Ferguson. He said standalone platforms will not exist in the future due to changes in technology and a shift in the distribution chain. There will also be a reduction in cost for clients over the next four years from 180 bps to 120 bps by 2026.
Advisers must challenge thinking on multi-asset portfolios
Advisers must do more to challenge the current thinking on multi-asset portfolios during the accumulation savings period. The call was made by Eadon and Co. retirement director Billy Burrows at the Money Marketing Retirement Summit. Burrows, an expert on pensions and annuities, told the audience the multi-asset portfolio route can be a trap for many advisers with harmful consequences during market crashes.
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