Money Marketing’s Weekly Must-Reads: Top 10 Stories
Stay up to date with the biggest developments across financial services. This week, Monzo plans to shift its investment offering to the Seccl platform, and the Government unveils plans to revive the Pensions Commission. Here are the top 10 headlines you need to know.
Monzo to migrate investment offering to Seccl platform
Monzo confirmed it would migrate its investment and pension accounts to Seccl, the Octopus-owned platform, with over 300,000 existing users notified.
The move followed successful integration of new accounts from May 2025. Seccl took over custody and administration, while BlackRock remained fund manager. Monzo also launched new features including a digital Sipp and ETF access.
The full migration was scheduled for September, expanding Monzo’s reach in the retail investing space.
Alan Lakey: Are you a critical-illness cover expert?
Alan Lakey examined the complexities of critical-illness cover, focusing on how additional payment conditions differ across insurers.
He explained that while advisers prioritised quality, the actual payouts varied significantly due to claim wording and percentage caps. Using comparative tables, Lakey demonstrated how insurers like Guardian and L\&G differed in payouts over time.
He highlighted the importance of deeper analysis to determine the best plan for clients beyond headline figures or early-stage payment appeal.
Government announces revival of Pensions Commission
The government has revived the Pensions Commission to address the UK’s growing retirement savings crisis.
The Department for Work and Pensions revealed that nearly 15 million people were under-saving, with low earners, ethnic minorities and the self-employed most affected. Experts urged bold reforms, including increased auto-enrolment contributions and action on pension inequalities.
The Commission aimed to produce a comprehensive roadmap by 2027 to ensure adequate retirement incomes across all demographics and employment types.
Rachel Vahey: The clock is ticking on IHT reform
Rachel Vahey warned that the proposed inheritance tax (IHT) reform, set to take effect in April 2027, had already prompted a surge in client activity, with advisers reporting increased pension access and gifting.
Despite industry backlash and over 500 consultation responses highlighting flaws, the government aimed to raise £2bn annually. Vahey urged HMRC to explore simpler alternatives, such as income tax on death benefits, before implementing a costly and complex policy.
Tony Hicks: What can we expect from the FCA’s review of MPS?
Tony Hicks explored the FCA’s upcoming multi-firm review of model portfolio services (MPS), highlighting its significance in assessing how firms delivered good client outcomes under the Consumer Duty.
As MPS became the dominant form of Centralised Investment Proposition, demand grew due to rising regulatory pressures. Hicks emphasised the importance of selecting the right MPS partner, conducting proper due diligence and using tailored solutions to improve operational efficiency, meet compliance needs and deliver better client outcomes.
IHT receipts hit £2.2bn in three months: industry reaction
Inheritance tax receipts reached £2.2bn in the first quarter of 2025/26, up £100m from the same period last year, despite a cooling property market.
HMRC attributed the 4.8% rise to frozen tax thresholds and increased wealth transfers. Industry experts warned the trend would continue, especially with upcoming pension and property relief changes.
Advisers urged families to review estate plans and avoid panic, highlighting the need for clarity amid rising financial and emotional pressures.
Starting Out: Mastering R03 – overcoming the hardest challenges
The R03 Personal Taxation exam challenges candidates with tight timing and technical difficulty.
With 60 minutes for 50 questions, including complex scenarios on tax bands, trusts and pensions, precision is vital. Common pitfalls included trust taxation and tax return deadlines.
Ann Mora, technical support and content specialist at Brand Financial Training, advised that mastering repeated calculations through practice was key to exam success.
Targeted support will do ‘more harm than good’
Laura Cornely, founder of the Count app, argued that the FCA’s targeted support plans would confuse consumers and ultimately do “more harm than good”.
She highlighted widespread misunderstanding between advice, guidance and now targeted support. Cornely launched Count to offer affordable, personalised robo advice using Open Banking.
While others in the industry echoed concerns about the FCA’s lack of tech innovation, some felt targeted support could still improve current consumer guidance options.
Consumers show growing appetite for digital advice, study reveals
New research from AdviserSoftware.com revealed growing consumer interest in digital and hybrid financial advice, especially among younger investors.
Only 19% of UK adults currently use financial advisers, rising with wealth. Nearly one-third preferred digital or hybrid advice, with 8% comfortable using AI chatbots.
The study highlighted fragmented advice access, rising demand for targeted support and interest in virtual legal services and micro-savings tools, urging firms to rethink advice delivery.
Spotlight: The advice sector’s growing dilemma on fees
Financial advisers increasingly faced clients struggling to pay fees, with 87% reporting rising payment issues, especially among fixed-fee clients and those in drawdown.
Many advisers preferred flexibility or pro bono work to maintain client relationships despite cashflow challenges. However, network restrictions limited fee discounts for some firms. While not yet widespread, the dilemma forced firms to balance compassion with business sustainability.
Advisers stressed the importance of long-term client engagement.
