Targeted support services are being given FCA approval. It looks as if Royal London was first out of the blocks with its announcement followed closely by Quilter.
Slightly more worrying for the FCA and policymakers is the suggestion that only seven firms have applied as FTAdviser reports.
The change may be one of the biggest shake ups in distribution but this is something of a slow start.
I’ve been having quite a few chats with Patrick Murphy on Octo Members regarding the implications for advisers.
Also in the world of regulation, it looks as if most capital at risk investment warnings are to become a thing of the past. Money Marketing reports.
The Investment Association, lots of asset managers and platforms have issued updated guidance but also a report recommending regulatory tweaks.
It isn’t 100% that the FCA will accept the changes, but it feels very likely as the regulator is quoted in the press release.
Sarah Pritchard, deputy chief executive of the FCA, said: “We want to see a stronger investment culture in the UK, so consumers are better supported in navigating their financial lives. That culture relies on consumer confidence, which is built by clear, balanced information about the potential rewards and risks. We welcome the review’s push to make the way risk and reward is communicated clearer to consumers, rather than a tick box exercise.”
The guidance and report are underpinned by this research from The Wisdom Council research which included an A/B test of different risk and reward statements with 1,010 savers and novice investors. When presented with ‘capital at risk’, almost 2 in 5 thought they could lose everything, and 3 in 5 (59%) took away the message that investing is risky.
The majority of UK homeowners don’t understand what income protection (IP) covers, according to new research from LifeSearch and the HomeOwners Alliance, reported in Money Marketing.
More than a quarter (26%) wrongly believe IP won’t pay out for mental health. with 36% under the impression that it only covers permanent or very serious conditions.
Feels as if there is a significant comms challenge around increasingly popular IP.
Pension tracing requests hit 839,000 as £31.1bn remains in lost pots reports FTAdviser.
We have now entered the last year of pensions being outside of IHT calculations.
Inheritance tax (IHT) on pensions changes pose particular concerns when individuals hold illiquid assets within a pension, writes Nucleus pension expert Andrew Tully in Professional Adviser.
