The Bank of England’s Prudential Regulatory Authority effectively orders banks not to pay a dividend and indeed around £8bn will not be paid.
There may be a standoff coming with insurers. The regulator effectively asked them to think long and hard about paying a dividend. However, L&G is going ahead with plans to pay out around £750 million.
Clearly advisers will need to be thinking about their dividend strategy for clients going forward.
Interesting to see Kevin O’Donnell, the editor of Financial Planning Today, suggesting that the time to reform the FSCS is now.
AFH is urging its advisers to switch clients who won’t invest and are staying in cash on to its platform AFH Direct.
EValue's Chet Velani says that the FCA should use the time afforded by the delay in pathways to reconsider pathway 3 – “I plan to start taking my money as a long-term income within the next 5 years.” He suggests under the current plans the non-advised will be withdrawing too much income when on this pathway.
SimplyBiz has launched a support package for advisers including a payment holiday for its fees.
Interesting Q&A on Corporate Adviser with Ian Abbott of Engage Health Group discussing among other things, people who get sick overseas in the current climate.
The Chancellor of the Exchequer Rishi Sunak has extended the loan scheme to all SMEs not just those which cannot source conventional funding.
Financial Adviser also reports on concerns that limited company directors may be not be supported amid packages for the self-employed and support for larger firms.
The Pension Ombudsman has signalled it will take the current situation into account if there are delays in addressing pension transfer complaints.
This is slightly more optimistic amongst the rather grim news. Three in four households believe they can cope with the drop in income due to the coronavirus.