Good morning and welcome to your Morning Briefing for Monday 19 February 2024. To get this in your inbox every morning click here.
Novia Global sets up office in Dubai after regulatory approval
Novia Global is to set up office in Dubai after receiving regulatory approval to operate in the country.
The International investment platform recently received a licence from the Dubai Financial Services Authority (DFSA). It will now establish an office in the Dubai International Financial Centre (DIFC).
The firm has appointed Mark Maplesden as its principle representative officer.
Economic concerns driving ethical risks in businesses, survey reveals
A recent survey conducted by the Institute of Business Ethics (IBE) has revealed a growing concern among business leaders over the escalation of financial crime and its impact on vulnerable consumers.
The Ethical Risks 2024 survey highlights economic factors such as the cost-of-living crisis, soaring energy prices and rampant inflation as the main ethical risk factors for businesses. Economic strains are exacerbating financial crimes and driving various other risks in the corporate realm.
PFS launches tool to help advisers comply with Consumer Duty rules
The Personal Finance Society (PFS) has launched a new tool to help advisers and firms to comply with Consumer Duty regulations.
The Proficiency+ Consumer Duty competency diagnostic tool is the latest addition to the organisation’s Consumer Duty Resource Hub.
Chartered Insurance Institute capabilities and insight manager Vanessa Riboloni said the tool is “here to support the long-term [aims] of the Consumer Duty”.
Quote Of The Day
It is normal to feel nervous about investing when the stock market is at an all-time high, but history suggests that giving in to that feeling would have been very damaging for your wealth
-Duncan Lamont, Head of Strategic Research at Schroders, argues that stock-market returns since 1926 show that investing at a new high can be profitable.
Stat Attack
Although rental growth is predicted to run ahead of inflation for the rest of 2024, new research from estate agent Hamptons suggests that it may have already passed its peak.
8.3%
Year-on-year increase in average rents on newly let properties across Great Britain in January, the slowest pace for 13 months.
59%
Percentage of landlords who achieved a higher rent when a new tenant moved in, down from a peak of 81% in January 2022 and 79% in January 2023.
34%
Increase in the number of rental homes on the market today compared to the same time last year.
43%
Decrease in the number of rental homes on the market today compared to the same time in 2019.
Source: Hamptons
In Other News
Hargreaves Lansdown’s client Investor Confidence survey for February shows that confidence has risen in the European, Japanese and North American sectors, fallen in the Asia Pacific sector and stayed the same for Emerging Markets and the UK.
European equities rose 9% in the year to the end of January as inflation fell back towards target levels, helping to boost confidence despite economic challenges.
France and Germany, the two largest economies in the bloc, have reported negative data in recent months – the French economy unexpectedly shrank in the third quarter of 2023, while German industrial production has been weak due to high energy prices and German house prices fell sharply last year after a decade of steady appreciation.
Economic uncertainty will create market volatility, but expectations of falling inflation and, in time, falling interest rates have provided a boost to stock markets.
The US does not face the same economic challenges, with higher GDP, stronger consumer spending and an expanding population. But it has been a narrow stock market rally, driven by just a handful of stocks in the Magnificent Seven, and investors should take care to evaluate their existing exposures to the US before buying more.
Despite views on the UK stock market remaining flat month on month, it is worth noting that investor confidence in UK economic growth has increased by 4 points, despite the Bank of England staying firm on rates and inflation looking sticky.
UK shoppers pick up their spending, signalling quick end to recession (Reuters)
The top 25 UK start-ups to watch this year (Bloomberg)
‘Europe must defend itself’: shadow of war in Ukraine looms over security conference (The Guardian)
Did You See?
The Financial Conduct Authority issued its long-awaited discussion paper on the advice-guidance boundary in December, writes Nick Eatock, chief executive of Intelliflo.
The FCA’s attempts to support firms in delivering advice to a broader range of people are to be welcomed. The issue of the advice gap has been growing for years, and recent financial shocks such as the pandemic and the cost-of-living crisis has shown many more people would benefit from improving their financial resilience.
Intelliflo has long believed technology holds the key to widening access to advice, while continuing to deliver the best outcomes for clients. When firms fully embed technology, it reduces friction and drives efficiencies that enhance the delivery of consistent, quality advice.
Indeed, looking at the FCA’s proposals, it seems impossible firms could successfully implement them without effective use of technology.
