Dear Readers,
As we start to wrap up for the holidays, I wanted to say a special thank you to all those who have supported us over the last 12 months.
However, adequately summarising the last 12 months is something of a challenge…
I joined Money Marketing as editor quite late this year. But from the many chats I’ve had with IFAs since arriving, I don’t get the sense I’ve missed a joyous party. 2023 is politely described as ‘tough’ by most of them, and I can easily see why.
The introduction of Consumer Duty in July, although broadly welcomed by most advisers, has shaken up the sector and forced many firms to make burdensome and costly changes, which will reverberate well into the new year.
The ‘advice gap’, meanwhile, continues to grow, with 50% of advisers planning to retire in the next five years, while ‘fiscal drag’ creates ever more demand for their services.
All of this has played out against a stagnant economic backdrop, with sluggish productivity, interest rates at 5.25% and inflation (while not as high as it was 12 months ago) significantly impacting the cost of living.
Just to add to the gloom, if you haven’t read at least 10 articles in 2023 about how artificial intelligence (AI) will render your job obsolete, you’ve clearly been living under a rock.
In some respects, of course, this year has been less dramatic.
On the political front, we’ve had just the one prime minister (instead of the three 2022 threw up), relative stability on the two frontbenches (bar the odd high-profile sacking) and a sense – post-Johnson, Truss and Covid – that things are beginning to resemble normality.
As is often the case, however, surface appearances are misleading. Chancellor Jeremy Hunt’s Autumn Statement in November, for example, was billed as an ‘Autumn Statement for Growth’, but the Office for Budget Responsibility (OBR) promptly responded by slashing its UK growth forecasts for the next two years.
In truth, the Statement raised more questions than it answered.
Although the pensions triple lock remains, is it sustainable? (Only last week, the Institute for Fiscal Studies called for it to be scrapped in favour of a ‘double lock’.) Does the government plan to reduce or even abolish inheritance tax? Will there be any movement on income tax, or will the overall tax burden continue to rise to historic levels?
Of course, it’s debatable how much of this is within the government’s control.
With the Conservatives lagging far behind Labour in the polls, their time is probably running out, and we await with interest what path an incoming Labour government takes (it has already pledged to reverse the abolition of the lifetime allowance, for example).
And that’s merely to focus on the domestic front. The UK election is only one of 40 taking place worldwide in 2024 (yes, you read that correctly), the most notable of which is a potential rerun of the Biden vs Trump battle for the White House.
More distressingly, the war in Ukraine shows no real sign of abating, while the explosion of violence in Israel and Gaza has elevated that bloody conflict to a whole new level.
Such volatility will continue to pile pressure on the global financial system. And while the UK, among other countries, narrowly avoided a recession in 2023, the threat certainly hasn’t gone away.
Suffice to say, we live in turbulent times, and exactly how this will impact the advice sector in the year ahead is a subject we’ll be returning to again and again.
For now, all we can say for certain is that high-quality financial advice is more necessary than ever. And Money Marketing will continue to provide you with help and support as you navigate the choppy waters ahead.
Certainly, from my vantage point in the editor’s chair, I’m incredibly proud of the sheer range of journalism we produce every day.
Our monthly magazine contains hard-hitting cover features, up-to-date comment on the factors affecting the advice sector, and wider explorations of societal issues in our In Focus section.
Our top news team keeps the stories flowing online while also producing thought-provoking leaders in print. We’ve also conducted a series of fascinating interviews as part of our MM Meets section and our weekly podcasts, often at short notice!
Our Weekend Essays, meanwhile, allow us to look at the world of finance through a more personal lens (as well as giving me the chance to grumble about parenthood). And I haven’t even mentioned our Financial Adviser 2B platform, a handy resource for aspiring advisers and a great repository of first-hand stories and advice.
Finally, a special shout out is due for all the fantastic events and awards ceremonies we’ve overseen over the past year – we’re planning a lot more such activity in 2024!
Although we’re shutting up shop until 2 January, we’ll still be publishing a series of ‘highlights’ articles over the festive period, in case you need a break from seasonal cooking, the King’s speech or argumentative family members.
(Although we do quite a good impression of argumentative family members in our end-of-year-podcast – keep an eye out for it here.)
And rest assured, we’ll be back in 2024 to bring you yet more top-quality journalism.
In the meantime, a very Merry Christmas and a Happy New Year from the whole MM team!
Tom Browne
Editor, Money Marketing
