Something momentous happened just before this issue of Money Marketing went to press, as new chancellor Kwasi Kwarteng delivered a ‘mini-Budget’ that turned out to be huge.
With this act he demonstrated a classic British tradition: understatement.
In just one speech, Kwarteng introduced the biggest tax cut in decades, reversed the hike in National Insurance contributions and slashed corporation tax.
All the hardship people are going through convinces me advisers have never been more important
It is part of the government’s Growth Plan of more than 30 measures that aim to tackle high energy bills, drive down inflation and lower taxes, all intended to prompt an economic resurgence.
The overall objective of Liz Truss’s regime is to go for broke on growth (some are suggesting the UK may actually go broke as a result of her plans), based on the argument that economic growth has been anaemic for too long. The government believes it must seize the opportunity and be bold.
Our cover story has been written against this backdrop and asks if these pressures can become an opportunity to do something different. Specifically, to clean up the data mess in financial services.
On the surface, data is about numbers, but that is the tip of an iceberg of broader themes in financial markets, namely consumer protection, financial regulation and inclusion.
Many believe the FCA will have to be more prescriptive about the data it requires from advisers
There are massive projects under way that could improve data in financial services — such as the pensions dashboard, the forthcoming Consumer Duty and two other pieces of legislation.
The legislation comprises the Data Protection and Digital Information Bill and the Financial Services and Markets Bill. If these are both done right, consumers and advisers will gain massive benefits. But the route is not straightforward and is littered with trip wires.
Some of those quoted in the article believe the stars have aligned to clean up data in financial services. Others are sceptical about the promise of regulatory and policy initiatives to move the dial on data in a big way.
In relation to the Consumer Duty, many believe the FCA will have to be more prescriptive about the data it requires from advisers.
The challenging context brings me to another subject: the recently held Money Marketing Awards. We celebrated the very best of the advice profession on 29 September at etc.venues in Houndsditch.
The government believes it must seize the opportunity and be bold
It was a pleasure to see the smiles of the winners as they came up on stage for their place in the limelight.
All the recipients have worked extremely hard to be where they are.
And all the hardship many people are going through convinces me financial advisers have never been more important.
So keep up the good work!
Michael Klimes is acting editor of Money Marketing. Contact him at: michael.klimes@moneymarketing.co.uk
This article featured in the October 2022 edition of MM. If you would like to subscribe to the monthly magazine, please click here.
Ms Truss should go broke herself and not drag the rest of us down with her.
As I said before we will all be needing a truss as our finances are well and truly ruptured.