Money Marketing’s Weekly Must-Reads: Top 10 Stories
This week, Aegon UK issued an apology to customers affected by significant IT outages, while the Financial Services Compensation Scheme (FSCS) announced a £372 million payout to customers who received unsuitable financial advice.
Exclusive: Aegon UK apologises to customers affected by ‘major IT issues’
FSCS to pay out £372m due to ‘highly complex’ advice claims
The Financial Services Compensation Scheme (FSCS) announced plans to pay £372m in 2024/25, exceeding its forecast by £9m due to a rise in “highly complex” advice claims.
Interim CEO Martyn Beauchamp attributed the increase to progress on claims decisions, with over two-thirds now classified as highly complex. Despite the challenges, claims decisions rose by 18% year-on-year, and the 2024/25 levy remains at £265m.
FSCS highlighted its transformation programme, recoveries success and new claims management model as key contributors to ongoing improvements.
Wesleyan hires former Aviva head of retail as investment specialist
Wesleyan appointed James Tothill as an investment specialist to bolster its intermediaries team.
Tothill, formerly head of retail at Aviva Investors, has also held roles at Zurich, Prudential and Henderson Global Investors. He will collaborate with Wesleyan’s fund management and distribution teams to expand its With Profits Growth Fund in the UK adviser market. Launched on Wealthtime in 2021, the fund is now on Nucleus and Abrdn Wrap.
Wesleyan praised Tothill’s expertise in the multi-asset intermediary market as invaluable.
Exclusive: Platforms Association expands to 46 founding members
The Platforms Association grew to 46 founding members within two months of its launch in September 2024.
Members include major firms like Abrdn, Aviva and Quilter, alongside platform consultancies and tech providers. The association aims to represent the £1trn investment platform sector, focusing on policy, operations and technology. CEO Keith Philips highlighted rapid growth, reflecting industry interest in collaboration.
A Leadership Council, chaired by Peter Mann, will set priorities in December, driving a 2025 roadmap to benefit investors, advisers and platforms.
Succession Wealth adds £1bn AUA with third acquisition of the year
Succession Wealth acquired True Wealth Group, managing £1.1bn in assets under advice, marking its third acquisition in 2024 and fifth under Aviva ownership.
This year’s acquisitions, including DFP Health & Wealth Management and London Wall Partners, added £2.2bn in client assets. True Wealth Group, based in Leeds with five UK offices, became Succession’s first presence in Northern Ireland.
Succession CEO Roger Marsden emphasised strategic growth, while True Wealth co-founder John Baxter highlighted alignment with Succession’s client-focused philosophy and long-term security.
Andrew Tully: IHT planning points hardest hit from Budget bombshell
Abrdn hires Interactive Investor CEO to help drive growth
Abrdn appointed Richard Wilson, CEO of Interactive Investor, as its new group chief operating officer.
Wilson, with over 30 years of experience, will lead Abrdn’s technology and operations. David Scott, the outgoing chief technology officer, retired as planned. Xavier Meyer, previously chief client officer, was named CEO of Investments, succeeding Rene Buehlmann.
CEO Jason Windsor emphasised the changes as part of a strategy to sharpen focus on clients and drive long-term growth, supported by a newly formed group operating committee.
FCA bans advisers for ‘recklessly’ breaching asset requirements
The FCA banned financial advisers Craig Buchan and Martin Cooke for “recklessly” breaching an asset requirement imposed on their firm, MedDen Financial Services.
In December 2020, the FCA had mandated the requirement to protect customers’ redress funds. However, Buchan and Cooke withdrew £9,292.36 from MedDen’s bank account for personal benefit.
The duo failed to report the breach and were fined £6,037 and £6,020, respectively, after their penalties were reduced due to financial hardship. MedDen entered liquidation in February 2021.
Customer outcomes ‘not being represented at board level’
A study by ArvatoConnect revealed that 46% of financial services firms wished they had secured more board-level leadership on customer outcomes in the first year of Consumer Duty compliance.
Only 44% had focused on cultural changes for compliance, with most businesses moderately optimistic about improving customer outcomes. Despite challenges, 85% agreed that the Consumer Duty had improved performance.
The study also highlighted the need for better use of AI, automation and technology to enhance outcomes and manage increasing costs.
Aviva upgrades individual critical-illness policies
Aviva upgraded its individual critical-illness policies to include £5,000 in support for six types of pregnancy complications.
The insurer also expanded its children’s benefit, adding four new conditions eligible for £25,000 payouts. These conditions are Craniosynostosis, Edwards Syndrome, Osteogenesis Imperfecta and Patau Syndrome. Additionally, Aviva raised its child death benefit to £10,000. In 2023, Aviva paid £5.9m for 283 children’s critical-illness claims, with cancer being the most common reason.
These upgrades align Aviva’s offerings with AIG Life UK.
