A good news story on the regulatory front! Advisers are doing pretty well when it comes to suitability, less so when it comes to disclosure of charges. But this is still quite a positive story as this Reuters article demonstrates.
The regulator’s concerns are focused on charges disclosure. Advisers, among other things, were giving too great a range of charges in the FCA's view and while they offered hourly fee charges, they did not not disclose how many hours it might take to complete such work.
George Kinder, the US life planning guru, suggests neither chartered nor certified really cut the mustard when it comes to dealing with the great issues of the day including inequality. Pretty ambitious stuff for advisers, who he suggests may be contributing to inequality, but well worth a read.
Discretionary fund manager Strand Capital, a DFM, has entered the FCA’s special administration regime in operation since 2011, to help clients get money back. Hopefully, this is the surrounding business that has foundered and client assets will be safe. More information is available by emailing [email protected].
Now to those elections. The Liberal Democrats announce plans to hold a review which will see a flat rate of pension tax relief.
Labour, among other big tax changes, would see firms which pay employees more than £500,000 facing a 5% levy on such salaries. It will extend a stamp duty of 0.2% to transactions on bonds and derivatives.
The Conservatives plan to charge the estates of those who need social care both in and out of care homes apart from the last £100,000 of the estate. The Economist says it means the next generation pay for care for the old. The Telegraph explains the details here, while the Independent, perhaps a little excitedly, thinks it is turning the election Labour’s way.
Will Hutton, in the Observer, thinks the subsequent sales of houses may bring affordability to the housing market. If he’s right let’s hope it’s a smooth adjustment.
Thinktank the IFS suggests that Conservative plans to end the triple lock and make it a double lock will not save the country much money as 2.5% (the third element) may not often be reached. The other parties are maintaining it.
Meanwhile back in the industry, Standard Life looks at some of the detail of the merger prospectus with Aberdeen. Money Marketing wonders about the combined group’s ownership of three platforms suggesting that Parmenion may be the odd one out.