Analysts claim 80% of SJP funds are underperforming [80% of SJP funds underperforming, analysts say]
This story by reporter Darius McQuaid was our most read of 2023 – along with many others spotlighting St James’s Palace (SJP).
Analysts noted that three-quarters of SJP funds yielded returns below the sector average over five years, while 15% of all SJP funds returned losses over 10 years.
Independent assessor Yodelar said it received more complaints from SJP clients than any other company, although SJP claimed its analysis was “not accurate”.
Exclusive: FNZ clarifies working from home sacking threat [Exclusive: FNZ clarifies working from home sacking threat]
Platform tech provider FNZ assured MM’s Momodou Musa Touray that it would “continue to allow for exceptions to [its] hybrid working policy” after a leaked email threatening to sack staff “without notice, without settlement, without references and without any further warnings” caused uproar.
The company allows employees to work from home two days a week, but the ill-tempered email – sent to its 30 international locations – was responding to alleged violations of this policy.
Budget 2023: Hunt announces 12 UK investment zones [Budget 2023: Hunt announces 12 UK investment zones]
The Budget spawned many MM stories, but Chancellor Jeremy Hunt’s unveiling of 12 new investment zones to level up the UK attracted the most attention.
As reported by Lois Vallely, the 12 areas are: the West Midlands, Greater Manchester, the north-east, South Yorkshire, West Yorkshire, East Midlands, Teesside and Liverpool.
Each one must “credibly set out” how local partners will “propel growth in priority sectors, identify private sector match funding and use the local planning system to support growth”.
Scottish Widows apologises for poor service levels [Scottish Widows apologises for poor service levels]
Pension provider Scottish Widows told our reporter that it was “working hard” to address a litany of complaints, delays and communication blackouts.
According to reports, one critically ill customer was made to wait more than 100 days for a claim to be processed, while others set up a Facebook group to share their stories.
Lloyds complaints data for Scottish Widows showed a 32% increase in the period July to December 2022.
SJP chief Andrew Croft on scrapping exit fees [SJP chief executive Andrew Croft: View from the top]
Following the surprise announcement, covered last month, that SJP was scrapping its so-called “early withdrawal charges”, former editor Katey Pigden bagged a last-minute interview with departing SJP chief executive Andrew Croft.
Andrew explained why SJP finally decided to make these changes. He also addressed the negative press SJP often faces, the impact of the Consumer Duty and why he’s stepping down after 31 years with the business.
State pension top-up scheme ends in April [Deadline for state pension top-ups closes in April]
In January, we reported that the government was closing a scheme that allowed people to fill gaps in their National Insurance (NI) records.
Under normal rules, it’s only possible to fill gaps going back six years. However, this limited scheme allowed people go back 10 years instead.
Former pensions minister Steve Webb said that topping up NI contributions could be “the best rate of return [a person] could get on any spare capital”.
Abrdn CEO asks to be judged on new platform [Abrdn platform CEO: ‘Judge us from now’]
Global investment company Abrdn announced the completion this October of the “biggest and most complex upgrade” of its Wrap platform.
Chief executive of Abrdn Adviser Noel Butwell told Katey Pigden that the changes had “laid the foundations” for the company to grow based on what clients want and need.
He added: “Judge me from this point going forwards in terms of what I will deliver.”
Vanguard’s failure: where next for low-cost advice? [Cover story: Where next for low-cost advice following Vanguard’s failure?]
Our April cover feature explored the sudden closure of Vanguard’s financial advice service and its implications.
Vanguard’s ambition to bring simplified, low-cost advice to the mass market – restricted to retirement savers – was a huge task, but after just two years it threw in the towel.
Its failure raises several questions: What exactly went wrong? Why couldn’t its proposition be made to work? And what’s the future for hybrid advice in the UK?
Aegon denies sale of UK platform arm [Aegon snubs UK platform sale speculation]
In March, we reported on speculation that Aegon was planning to sell its UK platform arm following a strategic review.
One source indicated that Canada Life could be interested, but Aegon denied there was any truth to the rumours.
It’s been a tough time for UK platforms. Data published by The Lang Cat found that only four platforms of the 21 it monitors ended 2022 with more assets under administration than 12 months previously.
Succession Wealth targeted by cyber-attack [Succession Wealth targeted by cyber-attack]
Following a cyber-attack in February, Succession Wealth was forced to assure clients that they would suffer no financial loss if their personal data was misused.
“The security of our clients’ information is our top priority,” said a spokesperson, while announcing “additional security measures”.
In a previous report, MM identified three ongoing cyber threats to advice firms: data breaches, cloud technology and passwords.
Quilter’s David Tiller dies suddenly [Quilter’s propositions director David Tiller suddenly dies]
It was a tragic start to 2023, with the announcement that Quilter’s commercial and propositions director David Tiller had passed away aged 56.
Tiller, a veteran of the financial services sector, died suddenly on 28 December while walking with friends in the Lake District.
Quilter chief executive Steven Levin said the company was “desperately saddened” by the news, adding that they had benefited from his “deep industry knowledge”.
Keith Richards on the CII vs PFS debacle [Keith Richards on CII vs PFS debacle]
Some stories just keep on giving. In January, Keith Richards, a former chief executive of the PFS, wrote for MM about the takeover of the PFS board by a majority of CII members.
Richards said that the move was “not the acceptable behaviour of any professional organisation, let alone a professional body” and questioned the CII’s motives.
Despite things quietening down since, the story is far from over – something we explore further on pxx.
What gets an active fund manager out of bed? [Robin Powell: When active managers’ own money is in index funds, you know there’s a]
The evidence suggests that, on a properly cost- and risk-adjusted basis, almost all fund managers underperform the relevant index in the long run. So, what’s the point of them?
According to a report by Robin Powell, they may be asking themselves the same question.
In a series of interviews, one admitted, “All my own money is in index funds,” while another said the industry was “made up of very average people who just don’t know what they are doing”.
Could AI soon predict the stock market? [How close is AI to predicting the stock market?]
You couldn’t move for stories about artificial intelligence (AI) in 2023, and the advice sector was no exception.
Fortunately, as reported by Larry Cao, AI’s ability to predict the stock market is still some way off, with algorithms struggling to find the relationship between the drivers and the outcome of a stock’s returns.
But rest assured, finance professionals are still looking for ways to exploit AI for competitive advantage. Watch this space…
Nucleus buys Curtis Banks in £242m takeover [Nucleus buys Curtis Banks in £242m takeover]
In January, we reported on Nucleus Financial Platforms purchase of Sipp provider Curtis Banks Group in a multimillion-pound cash buyout.
The takeover deal represented an all-cash acquisition of Curtis Banks by Nucleus for approximately £242m.
In recommending the deal, the Nucleus board said it was an opportunity to build “one of the UK’s leading adviser platforms”, with £80bn of assets under administration.
Footballer Nick Powell on why he’s studying to be an adviser [Diary of an aspiring adviser: Stoke City’s Nick Powell on why he’s also qualifying as an]
The careers of professional sportspeople are short, so the need for financial planning is even more acute.
In our February issue, Stoke City’s Nick Powell outlined his scheme to qualify as an adviser by “completing an exam every six months while still playing football”.
Nick said his ambition was “to advise a player on how to make the money they earn in their 15- to 20-year career both last and grow for the next 30 to 40-plus years”.
Consumer Duty should end active management [The Consumer Duty should end active management]
The impact of Consumer Duty, launched by the FSA on 31 July, has already shaken up the advice sector, but Rockwealth’s Robin Powell said it should also put an end to advisers “putting their clients in active funds”.
Speaking to MM reporter Darius McQuaid, Powell cited the “overwhelming evidence” that clients are better off using low-cost index funds.
However, Orbis Investments UK director Dan Brocklebank countered that active vs passive shouldn’t be an either/or decision.
What we know about Labour’s tax plans [Tony Wickenden: Everything we know about Labour’s tax plans]
With the Labour party soaring in the polls, Tony Wickenden, managing director of Technical Connection, looked at what an incoming Labour government might do on tax.
In general, he wrote, Labour is keen to avoid the ‘tax-and-spend’ label by eschewing any form of wealth tax.
“Financial planners and clients should be cautiously reassured,” concludes Wickenden, especially with shadow chancellor Rachel Reeves ruling out aligning CGT rates with income tax rates.
What next for annuities? [Billy Burrows: What next for annuities?]
After a 30-year decline, annuity rates shot up dramatically in October 2022 following Liz Truss’s ill-fated mini-Budget. But is this trend likely to continue?
In response, adviser Billy Burrows pinpointed five questions: Will rates continue to increase? Will advisers start to favour annuities over drawdown? Will the image of annuities improve? Will there be more innovation? And will the market become more competitive?
Iress UK CEO Simon New resigns [Iress UK CEO Simon New resigns after four months ]
Simon New was named CEO of fintech firm Iress UK in April, as part of a major overhaul aimed at driving growth and innovation.
So, it was a shock when he stood down in September after just four months.
The reasons behind the move weren’t clear, with a spokesperson merely confirming New’s departure “to explore new opportunities” and the appointment of New’s deputy, Alex Hore, as acting CEO.
