The Financial Conduct Authority has announced plans to review its client categorisation rules in a bid to unlock more opportunities for wealthy investors and bolster the UK’s capital markets.
The review will focus on ensuring that rules protecting retail investors remain proportionate for high-net-worth and experienced investors supposedly giving firms greater confidence while preserving appropriate levels of protection. Money Marketing reports.
There are a few comments below this story expressing worries about whether this will cause some confusion about advice for wealthy clients. Probably needs some consideration by advisers and regulators. One worry may well be whether all these pro-growth measures add up to a coherent whole.
The Department for Work and Pensions annual report for 2024/25 shows a reduction in the amount of extra pension expected to be paid to mothers with NI. specifically due to missing Home Responsibilities Protection as FTAdviser reports.
(Looks like a new design on the website to be more like the main FT websites, which I think works well.)
Consultant LCP, which has publicised this shift, says that this is not because the Government thinks the problem is any smaller than before, but because it has slashed the proportion of entitled women who it now thinks it will be able to find. That does not sound optimal.
Advisers have been told they need to be on the front foot with crypto investing as clients will take the plunge either way, according to Colin Morris, investment manager at Parmenion, FTAdviser reports. I would still like to see a bit more of a lead from the FCA on this.
Professional Adviser says the retail financial services sector remains divided over what is a clear u-turn on the cash ISA limit. Treasury briefings to the FT. among others. made it clear that the plan was to take the cash limit down to £5000. It is no longer the plan, likely due to lobbying from building societies.
It did always feel as if the approach might not bring the desired outcome for the Treasury, in other words for money to move from cash to shares. Perhaps there is an argument to say that it would have had an impact over time.
I have yet to hear a clear argument for why people needs hundreds of thousands in cash ISA savings as some people obviously do. And back to first principles, tax reliefs are meant to help people do what's best for them but also take a view on what it means for society and the economy. Not sure the cash element is passing that test.
Citywire New Model Adviser is very hot on business structures and funding. It reports that True Prudential has refinanced £750m of high-yield bonds with tighter spreads on the new debt.
