Sean McKinven's Newsround: 20 April

Hello.

There is a case to be made that the saxophone is up there with the best designed musical instruments in the world. It’s hard to say if it beats the guitar for encompassing intricacy and simplicity into something pretty unique, or pianos, which are a marvel of versatility we largely take for granted, but it’s up there.

The saxophone largely benefits from being invented 100 or so years after pretty much everyone of its instrumental peers in woodwind and brass. Adolphe Sax was a flautist and a clarinetist, which clearly influenced his design.

Our man Sax though was not one to rest on his laurels, and he was keen to put his name on many things. One of his first big successes was the Saxhorn. This isn’t really a saxophone or an invention, it was a significant improvement on valved bugles.

Not content with anything simple or easy in his later years, his inventions began to get a bit wilder and more bizarre. The Saxotonnerre, a locomotive powered organ that he wanted to be audible across Paris, and a saxcanon which was a response to Crimean sieges being a little difficult and lengthy.

The saxophone also represents something a bit ahead of its time. Despite early intrigue, interest in Western art circles tended to wane, particularly in Europe. But in the US it began to attract more interest and before we know it there was jazz (nice!), to which the design and tone of the sax is especially suited. It arguably hit its peak in the 80s when it was just about the only organic instrument that could cut through all the layers of massive shoulder pad music production.

It’s not unusual for various different things to be invented for one purpose and used for another. “Did you know Viagra was invented to treat blood pressure?” Yes, because the worst people you know are always telling you. But this is something different. Our man Sax noted a universal problem in music playing and recognised aspects of contemporary instruments couldn’t deliver the solutions, so he arguably combined the relevant attributes. This meant when the problem arose again in another context the need was still met.

This can be a helpful analogy to keep in mind for financial instruments and infrastructure. Saxhorns were good for the military bands, but it was always going to be impossible to look cool playing one in a rock ‘n’ roll band.

The saxophone doesn’t just respond to the problem in the immediate terms: it considers the universal conditions that make the problem and seeks to provide something that addresses it. When you are considering problems with products and financial infrastructure, fixing the universal issue will help when you encounter issues in the future – and there will be issues.

Please refrain from going: “This is a little difficult, maybe we should build a massive cannon to blow it up”.

The News:

LANG CAT & CLIENT MENTIONS

Morningstar and Lang Cat: Half of advisers expect further growth in MPS usage

Based on an MPS paper we have worked on with Morningstar Wealth.

Source: Portfolio Adviser

FCA: ‘Flexibility’ for Level 2 advisers to give advice (under supervision)

Including Mike’s thoughts on previous similar rumours.

Source: Citywire NMA

Matt Storey: The SME funding solution that’s hiding in plain sight

The benefits of putting SMEs in SIPPs.

Source: Money Marketing

VouchedFor founder splits life planning and advice in new firm

Our Advice Gap research is cited.

Source: FT Adviser

AI won’t cause mass paraplanner job cuts, Saturn CEO says

Amal Jolly speaks to NMA’s Jack Gilbert.

Source: Citywire NMA

Standard Life/Aegon UK deal signals provider ‘shrinkflation’ as advisers await impact

Box office Barrett gives his views on the Standard Life/Aegon deal.

Source: Professional Adviser

I was overspending by £500 a month. This is how a new app helped me budget

Alina Khan cites the Advice Gap research as she looks at Helena Wardle’s AI advice app.

Source: The I

Robin Powell: Governance still lags behind AI usage

SOTAN mentioned in this column.

Source: Money Marketing

Early tax year reset offers opportunity for advisers as investors look to act sooner, finds Wealthtime research

Wealthtime with some TYE data.

Source: IFA Magazine

ADVISERS

Fixing the ‘broken’ pathways for new advisers

Some interesting stuff going on with friends of the lang cat Tom Ham and Hayley Rabbets of Evergreen.

Source: Professional Adviser

Lee Quinn: Could value be the real driver of the advice gap?

IWP’s Lee Quinn argues to close the advice gap the profession needs to get better at selling advice.

Source: Money Marketing

Global advice groups could be upon us: Secret PE Consolidator

The Americans are coming.

Source: Citywire NMA

Advisers confirm rise in pension lump sum withdrawals

Advisers and pensions crossover episode.

Source: FT Adviser

PROTECTION

Royal London broadens income protection reach

The provider wants to recognise changes in the way careers play out.

Source: Money Marketing

INVESTING AND WEALTH MANAGERS

The secret tech investor: Tokens are the new headcount

This provided my ‘scream at the computer screen’ article of the week.

Source: Citywire WM

Three in five wealth firms not planning to offer Targeted Support services

According to data from Pimfa.

Source: Wealth Investment News

Govt decision to reject Lords’ amendment to mandation clause ‘disappointing’

This preserves powers that would allow ministers to require defined contribution schemes to allocate a portion of portfolios to specified asset classes.

Source: FT Adviser

David vs Goliath: What do small MPS firms make of fund giants muscling in?

Saturation in the MPS market examined.

Source: Citywire WM

REGULATION & POLICY

Half of advisers recommend accessing pensions early ahead of IHT changes

John Rawls raises an eyebrow.

Source: FT Adviser

MPs demand FCA inquiry over hidden credit liabilities claims

The unlikely feature of adviser press. John McDonnell, continues.

Source: Money Marketing

Vanguard: We’re looking at simplified advice and targeted support