Money Marketing’s Weekly Must-Reads: Top 10 Stories
This week, we had Royal London’s latest solution for clients facing inheritance tax and David Ferguson’s unfiltered take on the platform market.
Royal London launches solution to help clients with IHT needs
Royal London introduced a joint life second death life cover option to assist clients with inheritance tax (IHT) planning.
Available through its Personal Menu Plan, it offers a cost-effective alternative to whole of life cover, providing a payout on the second death or terminal illness up to age 90. Features include a gifting option to protect lifetime asset transfers and no medical re-underwriting.
Rising IHT liabilities are driving demand for such solutions, making this launch timely for advisers and clients.
David Ferguson: Awkward home truths for the platform market
The advised platform market faced ongoing challenges in 2024, including outflows, failed tech upgrades and regulatory pressures.
Valuations dropped sharply, while innovations like Timeline’s platform and partnerships with FNZ and SS&C aimed to improve efficiency. New entrants began challenging traditional platform models, highlighting the need for modern, API-first technologies. With rising client expectations, advisers must enhance digital services to stay relevant.
David Ferguson, chief executive officer at Seccl, highlighted the industry’s transition, including the UK Platforms Association’s formation, aiming for improvement in 2025.
Put a stop to ‘needless’ pension transfer delays, Quilter tells DWP
Quilter urged the Department for Work and Pensions (DWP) to address needless pension transfer delays.
Since implementing transfer regulations in 2021, 80% of flagged cases were due to unclear or low-risk reasons, disrupting 27,900 transfers, according to Quilter’s FOI request. Many savers remained unaware of flagged issues, undermining engagement.
Quilter called for swift legislative changes, improved communication from schemes and clarity around overseas investments to prevent further disruption. Head of retirement policy Jon Greer labelled the delays “overdue for change.”
FCA’s SDR regime is ‘intentionally painful’
The FCA’s Sustainability Disclosure Requirements (SDR) were described as “intentionally painful” by CCLA’s head of sustainability James Corah, in order to raise fund standards and prevent greenwashing.
Introduced last year, SDR established labels to ensure transparency in sustainable investments, addressing consumer confidence concerns. The regulator extended SDR to portfolio managers in April.
Corah emphasised collaboration for successful implementation, while CCLA’s Jasper Berens noted strong consumer demand for sustainability and supported the FCA’s high standards. Temporary naming flexibility began in September, expiring April 2025.
Rachel Vahey: Practical alternatives to costly and convoluted IHT-on-pension plans
AJ Bell’s Rachel Vahey criticised the government’s plan to extend inheritance tax (IHT) to pensions from April 2027, calling it costly and convoluted.
The proposed system integrates pensions into probate, requiring personal representatives and pension administrators to collaborate on calculations using a new HMRC tool. Vahey warned of delays and rising costs affecting all pension savers. She suggested alternatives, including extending income tax to beneficiaries’ withdrawals or applying a flat death tax.
Vahey urged policymakers to reconsider practical solutions over rigid IHT implementation.
National advice firm Milecross makes fourth acquisition of 2024
Milecross Financial acquired The Martin Cliffe Practice, its fourth acquisition of 2024, strengthening its presence in southern England.
The Milton Keynes-based firm serves 650 clients with £80m in assets and specialises in complex investments. All seven staff, including four advisers, joined Milecross. Chief commercial officer Chris Thorndycraft praised their expertise and alignment with Milecross’s client-focused ethos.
Founder Martin Cliffe highlighted the trusted relationship driving the deal. This acquisition concludes a significant year for Milecross, which now manages £700m across 30 UK locations.
How widening inequalities signal a warning for the UK pension system
A report by the Pensions Policy Institute highlighted how growing inequalities in health, wealth, work and housing are impacting the UK pension system.
Rising health disparities and reduced life expectancy in deprived areas hinder saving potential, while increasing wealth gaps and declining home ownership exacerbate retirement challenges. Although reforms like auto-enrolment improved retirement income for poorer households, progress has stalled.
Experts suggest targeted reforms and stronger safety nets are essential to address these inequalities and ensure improved living standards in later life.
FCA sets out targeted support proposals to provide extra support for pension savers
The Financial Conduct Authority (FCA) introduced targeted support proposals to help UK pension savers make informed decisions, addressing the widespread lack of engagement and understanding about pensions.
The initiative, part of the advice guidance boundary review, aims to offer free, tailored guidance to specific consumer groups, reducing reliance on costly advice. While hailed as transformative, concerns include potential confusion over advice versus guidance and risks of limited market participation.
Stakeholder feedback is sought by mid-February 2025 to refine the framework further.
A pointless battle: When client outcomes clash with compliance
Andy Hart, founder of Humans Under Management, criticised the growing tension between client-focused financial advice and a compliance system prioritising bureaucratic procedures over actual client outcomes.
Hart argued that concepts like volatility and capacity for loss, central to compliance, fail to reflect real investment risks such as permanent capital loss and inflation.
While acknowledging the importance of compliance, Hart called for reforms that align regulatory standards with practical investment advice. He urged collaboration to balance compliance and advisers’ duty to protect clients’ financial futures.
Don’t underestimate Consumer Duty changes to fair value
PA Consulting’s Thom Hart discussed how the Consumer Duty has complicated fair-value assessments for advisers and wealth managers.
Many firms have struggled to adapt, continuing to rely on outdated reviews or failing to provide evidence of customer benefit. The Duty requires a comprehensive approach, assessing benefits across customer segments and justifying costs.
Hart advised focusing on the service’s value, considering customer needs and characteristics, and measuring total costs to ensure fairness. He stressed that firms must meet these challenges to align with the evolving regulatory landscape.
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