It feels as if volatile markets really cannot get a handle on what the Covid-19 virus means for the economy and for share values.
As Citywire notes – following a week of reasonable gains, UK markets fell again at the end of last week. The FTSE dropped 3.5 per cent on Friday on news that the oil price had fallen by 8 per cent. This itself was despite OPEC signalling cuts to global supplies although even those messages were mixed.
CNN described the volatile picture for US markets as Coronavirus confusion which does seem quite apt.
Financial advisers and planners continued to urge clients to look through the current noise and concentrate on the long term as Citywire reports.
There will be a lot of pressure on the Chancellor Rishi Sunak for a host of reasons – not least the likelihood of big fall in economic activity - at the same time as huge spending demands.
However there are some specific challenges around pensions. The Financial Times reports Treasury sources saying that the earnings levels at which the annual allowance taper kicks in will be raised. The questions surely are how high and will it be enough to satisfy hospital consultants?
Aviva is lobbying the regulator to shift the advice/guidance boundary to allow big firms and platforms to give customers more of a steer. Interesting that I haven’t heard many IFA misgivings.
Schroders Personal Wealth is concentrating on building the proposition and improving its productivity rather than on garnering new business though the transfer of £12.6bn from Lloyds must have helped.
The number of independent schools leaving the Teachers Pension Scheme has jumped by a third. This should have big implications for any teachers deciding between the state and independent sector or certainly those independent schools involved. It will be interesting to see what sort of quality of DC scheme replaces the TPS. Obviously there is a huge need for advice but will these teachers seek it out?
Nucleus’ pricing policies are in the spotlight as they have been trialing different price points for some adviser firms. It may make for some interesting conversations with customers.