Good morning and welcome to your Morning Briefing for Monday 3 February 2025. To get this in your inbox every morning click here.
Supplementary report on the FCA’s ‘poor performance’ released
A supplementary report about the Financial Conduct Authority’s (FCA’s) “poor performance” in relation to its consumer protection remit has been released by the All-Party Parliamentary Group (APPG) on Investment Fraud and Fairer Financial Services.
The new report is being produced due to the APPG’s “disappointment” with how the FCA responded to its November 2024 report.
HMRC’s mid-year tax-regime changes will impact all of us
Life is getting tougher for tax payers trading assets and, in the short term at least, things are about to get worse when it comes to reporting, writes FSL managing director Michael Edwards.
HMRC has said it’s too late to adjust the format of the 2024/25 tax return to accommodate the changes made to capital gains tax rates in the 2024 Autumn Budget. This means investors will have to take extra steps to accurately report gains made on assets on or after 30 October 2024.
HMRC suspects wealthy individuals underpaid £325m in IHT in 2024
His Majesty’s Revenue and Customs (HMRC) has said it believes £325m in inheritance tax (IHT) has been underpaid by wealthy taxpayers in the last year (year-end March 31).
UHY Hacker Young, the national accountancy group has outlined that this figure could increase “significantly” in future years following IHT increases from April 2026.
Quote Of The Day
The FTSE 100 has been stopped in its tracks with the record run upwards going into reverse. It fell sharply in early trade amid worries that listed multinationals could be caught in the cross-fires of the trade wars
– Hargreaves Lansdown head of money and markets Susannah Streeter on the FTSE 100’s reaction to US president Trump’s tariffs on Canada, Mexico and China
Stat Attack
Research from Standard Life’s Retirement Voice report has found that certain retirees are choosing to return to work.
7%
of retirees aged over 55 have already gone back into work, with a further 2% actively looking for employment.
6%
said they are considering going back to work.
34%
have done so as they have found their living costs have increased while 27% have realised their pension is not providing enough income to live on.
43%
also want to earn more money so they can treat themselves more in retirement.
38%
said feeling bored and 20% feeling lonely drove them to return to work.
Source: Standard Life
In Other News
Capital Group has announced the launch of the Capital Group UK – Global Corporate Bond Fund (GCB), an Open-Ended Investment Company (OEIC) for UK investors.
GCB OEIC mirrors the investment approach and management team of its Luxembourg-domiciled UCITS counterpart, Capital Group Global Corporate Bond Fund (LUX), which has outpaced its reference index over the past five years.
Capital Group said: “GCB invests primarily in investment-grade (IG) bonds globally and is focused on providing a high level of total return over the long term.
“This approach offers UK investors market diversification and potential long-term stability through high-quality credit exposure.
“Managed by a lead portfolio manager and a team of 16 sector analysts, GCB’s portfolio is driven by fundamental research and high-conviction investments.”
From Elsewhere
Dollar surges as Donald Trump’s tariffs shake markets (Financial Times)
DeepSeek gives Europe’s tech firms a chance to catch up in global AI race (Reuters)
BoE to deliver setback for Reeves with ‘stagflation’ forecasts (Bloomberg)
Did You See?
The Financial Conduct Authority (FCA) has set out proposals to make it easier for listed companies to issue corporate bonds that wealth managers and retail investors can buy.
The city watchdog is also proposing to simplify the requirements that apply to listed companies when they issue further shares. By doing so, the FCA is attempting to streamline the process by cutting “red tape”.
The FCA is consulting on a single standard for corporate-bond prospectuses, covering both large and small (less than £100,000) bond sizes.
This in turn would reduce costs and barriers for companies raising capital and give “investors the information they need to make an informed decision”.
The aim behind these moves is to encourage companies listed on stock exchanges to offer bonds in smaller sizes, improving investment opportunities for wealth managers and retail investors.
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