Good morning and welcome to your Morning Briefing for Wednesday 31 May, 2023. To get this in your inbox every morning click here.
Novia merges platform teams
Novia Financial has merged its operations and technology teams as part of efforts to provide better service for advisers and their clients.
The platform provider said the move will enable it to be “agile and responsive” to advisers’ evolving proposition and service needs.
As part of the merger, Eden Scrivenger who joined the platform in August last year, will take on the expanded role of chief technology and operations officer.
Platform due diligence
Traditional categories such as financial strength and profitability are among the first things firms screen for when carrying out a due diligence exercise, but are these still the right filters?
In an age of digitalisation, automation and Consumer Duty, could firms be overlooking their perfect platform partner by continuing to do things as they always have?
Quote Of The Day
Inheritance tax has quickly shifted away from being a tax on the wealthy, as originally intended, to one paid by more modest estates thanks to runaway house prices and solid investment returns over the long term.
– Myron Jobson, Senior Personal Finance Analyst, Interactive Investor, commenting on inheritance tax (IHT) threshold which has pushed more estates into the tax net, costing bereaved families almost £62,000, on average.
Stat Attack
The Embark Investor Confidence Barometer has revealed that most advisers believe that investors’ emotional decision-making is costing clients at least 2% per annum (pa) in foregone returns. Short-term market moves are worrying investors, with
61%
nearly two-thirds (61%) of surveyed advised clients reporting that they had discussed market volatility with their adviser in the last 12 months. The survey suggests that this is a significant risk advisers need to manage, with the average surveyed adviser reporting that
45%
almost half (45%) of their client base have strong opinions on investment allocations. These decisions can lead to frequent investment mistakes, with
63%
of surveyed advisers saying they are ‘frequently’ or ‘regularly’ surprised by the decisions or proposals their clients make about investments.
6%
By comparison, just 6% of surveyed advisers said they were ‘rarely or ‘never’ surprised.
47%
When asked what they thought was the biggest mistake their clients made in their investment decisions, advisers cited ‘being too influenced by the news’ (47%) and ‘taking too little risk’ (44%) most frequently.
95%
Most surveyed advisers (95%) believe that emotional decisions have cost their average client at least 2% pa.
48%
Worryingly, nearly half (48%) of advisers believe their average client gave up between 4-5% pa, indicating the significant costs associated with not taking a long-term view on investment decision-making.
Source: Embark Investor Confidence Barometer
In Other News
The Cambridge Building Society has appointed Carly Nutkins as head of lending. Nutkins joined the firm in March this year and leads its ambitious plans for mortgage growth.
She has over 15 years banking experience and joined the mutual from Allica Bank where she worked as its mortgage operations manager. Nutkins is tasked with making mortgage applications at The Cambridge easier to ensure a smoother lending process for its customers, intermediaries, and brokers.
The Cambridge has also appointed Tom Llewelyn as company secretary and head of governance, and Fred Holland has been appointed as head of operational risk.
Llewelyn achieved promotion at the society in February, having previously held the title of operational resilience manager. Holland joined the mutual in February this year to lead its evolution of a sophisticated three lines of defence model.
Nigel Aston has joined Aon’s UK Defined Contribution (DC) Solutions team as an associate partner and market development lead. Aston brings over 20 years of experience in driving DC investment strategies within the UK market and abroad. Prior to joining Aon, he was a senior managing director at State Street Global Advisors, where he was responsible for global workplace strategy and ESG.
He also previously held roles at Standard Life, AXA, SEI and technology start-up DCisions, spanning areas including investment design, sales, and marketing and communication. In his new role Nigel Aston will be focused on working with clients and market evaluators to ensure client needs are well understood and addressed.
Isio Group Limited (Isio) has completed its acquisition of Deloitte Total Reward and Benefits Limited (DTRB), the UK pensions advisory business of Deloitte LLP, following FCA approval.
The acquisition cements Isio’s position as one of the largest pensions advisory businesses in the UK, with more than 1,000 people across 10 UK office locations and is the second landmark transaction for Isio since its formation in 2020.
DTRB provides actuarial, pensions administration and investment services to some of the biggest organisations and pension plans across the UK.
The completion of the acquisition adds 200 people to Isio’s existing team and adds a new location for Isio in Belfast, where the existing 100-strong team will be led by now Isio partner Mark McClintock.
From Elsewhere
‘Move fast’ warning for anyone due to renew or secure mortgage (Sky News)
A.I. poses human extinction risk on par with nuclear war, tech leaders warn (CNBC)
Asia stocks, yuan slump as data dashes China hopes (Reuters)
Did You See?
The first person article by former Norwest Consultants principal Harry Katz on the need for more healthy cynicism in the industry.
The veteran adviser wrote:
“As far as the industry is concerned, a lot of people are led by the nose. It’s unfortunately not a popular thing to say but a lot of people should have experience outside the industry to become a little more cynical, as they seem to swallow everything they are told by the government as well as the profession.”
Read the full article here.
