Money Marketing’s Weekly Must-Reads: Top 10 Stories
This week’s top stories highlight key developments in the financial advice sector. Headlining the list: the FCA suspends Hargreaves Lansdown shares from trading, and advisers react with relief as Reeves leaves Cash Isas unchanged.
FCA suspends Hargreaves Lansdown shares from trading
The FCA suspended Hargreaves Lansdown shares from trading ahead of its delisting from the London Stock Exchange on 25 March.
This followed the company’s £5.4bn takeover by a private equity-backed consortium, including CVC, Nordic Capital and an Abu Dhabi Investment Authority subsidiary. The accepted bid of 1,140p per share was agreed in August 2024.
CFO Amy Stirling announced her departure, though she will remain until a successor is appointed. The suspension was requested by the company.
Relief as Reeves makes no changes to Cash Isas
Chancellor Rachel Reeves made no changes to the Cash Isa in her Spring Statement on 26 March, despite speculation of a potential cut from £20,000 to £4,000.
While reform remains possible later this year, industry figures welcomed the decision. TISA’s Carol Knight stressed the need for better financial education over tax cuts to boost investment. Research showed many feared a lower allowance would impact home deposits and retirement savings.
Nearly eight million savers use Cash Isas annually.
Phoenix Group appoints Wipro as partner for ReAssure platform
Phoenix Group appointed Wipro as a strategic partner under a Business Process Outsourcing agreement to manage ALPHA, the platform used by ReAssure.
This move aimed to accelerate the ReAssure Transformation programme while enhancing customer experience. Wipro committed to investing in the platform, streamlining operations, and complementing Phoenix’s partnership with TCS Diligenta.
CEO Andy Briggs highlighted Wipro’s IT expertise, while Wipro’s Omkar Nisal emphasised the expansion into UK financial services. The partnership formed part of Phoenix’s broader transformation strategy.
Behind the Headlines: What to expect in today’s Spring Statement
Chancellor Rachel Reeves was expected to deliver her Spring Statement on 26 March, with industry experts predicting minimal surprises.
Aegon’s Steven Cameron anticipated no major pension changes but warned of future scrutiny on the state pension age and triple lock. Utmost Wealth’s Marc Acheson suggested tax freezes could continue, affecting pensioners. Other potential measures included inheritance tax on pensions, Isa reforms and tax incentives for investment.
Analysts speculated Reeves might delay major tax and spending changes until the Autumn Budget.
FCA to scrap 100 pages of ‘outdated regulations’ from rule book
The FCA announced plans to remove 100 pages of outdated regulations to reduce burdens on businesses.
The proposals, unveiled on 25 March, aim to simplify rules for consumer finance, investment and mortgage firms post-Consumer Duty. The FCA will also withdraw outdated guidance, review disclosure rules and reconsider regulations for firms serving overseas customers. The changes follow government calls to cut red tape and support economic growth.
The FCA also pledged a “less intensive” approach to regulation, encouraging informed risk-taking.
Change stocks and shares Isa to investment Isa, says AIC boss
Richard Stone, CEO of the Association of Investment Companies, suggested renaming the stocks and shares Isa to ‘investment Isa’ to improve public engagement. He argued this change should be part of broader Isa simplification efforts.
Supporters, including Baroness Helena Morrissey and AJ Bell, advocate merging cash and stocks and shares Isas. Stone criticised the Isa market’s complexity but did not expect immediate reforms in the Spring Statement.
AJ Bell highlighted a gender gap, with more men holding higher-growth Isas.
AJ Bell sells Platinum Sipp and SSAS business to InvestAcc
AJ Bell agreed to sell its Platinum Sipp and SSAS business to InvestAcc Group for up to £25m.
The deal includes an initial £18.5m payment, with £6.5m deferred based on conditions. Platinum’s 3,600 customers and £3.2bn in assets will transfer in late 2025. CEO Michael Summersgill said the sale aligns with AJ Bell’s strategy to focus on platform services.
InvestAcc CEO Will Self welcomed the acquisition, emphasising a smooth transition. Fenchurch Advisory Partners advised AJ Bell.
Adviser fees jump by nine basis points
The average ongoing advice fee increased by nine basis points in 2024, with more advisers charging between 91 and 100 bps, according to NextWealth’s latest report.
Asset-based fees remained the most common structure, used by 70% of advisers, while fixed fees were second at 29%. The report also noted a rise in subscription and capped fee models, especially among larger firms.
Despite fee increases, 76% of clients felt they received good value, with transparency and personalised advice seen as key factors.
Weekend Essay: Frankie Dettori and his fine mess is a lesson to us all
Dan Cooper’s Weekend Essay explores Frankie Dettori’s financial struggles.
Dettori, one of the most famous names in British horse racing, recently announced he is filing for bankruptcy after unsuccessful attempts to resolve his financial issues.
The essay highlights how poor financial advice and vulnerability can impact anyone, including the wealthy, and underscores the importance of trusted financial guidance.
Scottish Widows ‘evolves’ workplace pension default
Scottish Widows introduced Lifetime Investment as the new default for workplace pensions, replacing its £60bn+ Pension Investment Approaches (PIA).
The default aimed to maximise pension growth, featuring higher equity exposure and a shorter de-risking phase, starting 12 years before retirement. It also incorporated responsible investing with a focus on UN Sustainable Development Goals.
Two risk options were offered: Growth Path and Balanced Growth Path. Scottish Widows planned further enhancements, including private market investments, to improve retirement outcomes.
