The FCA has a lot on its plate of course, but some have expressed disappointment that it has dropped its work on platform exit fees.
The initiative was not likely to impact SJP, to the frustration of other advisers, but it was credited with prompting Hargreaves Lansdown to remove its exit fees. Now there will be no regulatory initiative. Will some exit fees be quietly reinstated?
It really doesn’t seem to serve the consumer indeed nor indeed encourage competition.
A New Model Adviser round table suggests that the advice gap makes very little economic sense and wonders why advisers are turning away clients.
We have, of course, seen reports elsehwhere suggesting that some advisers are struggling to bring in new clients. Is there a neat solution involving inter-adviser referrals? It does operate within some networks but maybe some clients are not deemed economic.
In the Sunday Times, money editor James Coney suggests that those who demand a wealth tax should be challenged about where exactly they want the axe to fall.
Goldman Sachs is eyeing a move into UK advice and is holding discussions to buy Ascot Lloyd. Interesting to see whether the US strategy can be applied in the UK and indeed whether it would use the Goldman brand.
Professional Adviser reports that advisers will have to go back to the drawing board if the Government equalises IHT with income tax. Big planning implications and significant challenges for some advisers’ own planning regarding their businesses.
Interesting news from the US – well known planner Michael Kitces suggests that with a Biden win it is now time for a review of the fiduciary standard. At the crux of the matter is whether tougher standards should apply to broker dealers who have increasingly converged on the financial advice market or whether they should relinquish the financial adviser title.
There are echoes of arguments which occurred in the UK though it clearly doesn’t map perfectly.