The UK’s platform model portfolio services (MPS) market has grown at an average annual rate of 27% since 2019, according to new research from Platforum.
Pretty astonishing growth from a relatively low base, as Money Marketing reports.
Platform MPSs now accounts for 16% of the UK’s discretionary wealth management market, more than double its share five years ago.
“Most people will be retiring on not enough money” says the director of Standard Life's Future Retirement, Catherine Foot, speaking at a New Model Adviser event.
This warning came on the eve of the publication of the second part of the government Pensions Review which will address pensions adequacy.
We now have a relaunched Pension Commission, which will report in 2027 although advisers may be cynical that we'll see real action soon.
2Plan has set aside £1m for rebalancing and ongoing advice failures, New Model Adviser reports.
Sometimes a headline sums up as story really well. The following from This is Money is one such.
New 'Tell Sid'-style drive to get people investing revealed by Rachel Reeves in 'Leeds reforms'.
A new consumer campaign will lay out the long-term benefits of investing for better returns, rather than keeping savings in cash. Banks will nudge customers with large cash balances to consider investing instead.
Advisers will, of course, want to see the details and have many questions. For example Invest in what? Kitemarking has been tried.
Invest in funds investing in UK companies? – the UK ISA was dropped and we all know where the biggest equity returns have been – in US or US dominated global portfolios.
Invest in specific UK shares? Well, that was the original ‘Tell Sid’ and that was, as some commentators have pointed out, 39 years ago. (Even your venerable reviewer was still at school.) That was associated with the privatisation of British Gas, and arguably at a bargain rate, as Margaret Thatcher sought a short of share-owning democracy.
Some adviser leaders do want to see an increased role for advisers.
More can be done to empower financial advisers when it comes to government policy, according to Tatton Asset Management CEO, Paul Hogarth, reported in FTAdviser.
Anyway, there was a lot of other pro-growth talk. I have to say this article from Helen Thomas of consultancy Blonde Money in City AM sets out why the whole programme does not add up to a coherent whole asking Does Rachel Reeves believe in capitalism?
Harsh words, but most advisers will also probably think they are fair.
