“For all the innovation that goes on in our sector, the exchange of data between parties is often at odds with the standards we’d all expect.” Those were the views expressed by Mark Polson, in our white paper with FSL – “Excess Reportable Income: Borrowed Time.” We shared the report with industry figures and select media during a breakfast briefing on 16th November, 2023.
The lang cat looked into Excess Reportable Income (ERI) alongside Financial Software Ltd at a breakfast briefing in November.
Now, it’s important to spend time on high level issues in our sector; we all know there’s much that needs to change. But sometimes it’s fun to dive into a technical issue and spend some time glorying in the detail. And that’s what we’re going to do for an hour or so at the launch of this paper on offshore fund ERI reporting which we’ve enjoyed writing alongside FSL.
You only think you don’t care about ERI reporting – any client who wants or needs access to offshore funds, or any thought a discretionary manager you may partner with may have of using offshore funds is affected by this issue.
Looking for proof? Data released by HMRC, and reported by the Financial Times in September, states that nearly 24,000 nudge letters were sent in 2022/2023 tax year, an increase of 31% on the previous year. So clearly HMRC is beginning to flex its newfound muscles. HMRC also claims to have recovered £526m in tax receipts from offshore initiatives since 2019.
We believe this issue needs raising up the agenda. Otherwise we risk seeing more investors being hit with unexpected investigations and eye-watering fines. We also risk the broader reputational damage to investing, and in particular offshore investing.
That’s why like it or not, the sector has a collective responsibility to ensure investors, their accountants or their tax advisers have the correct information to guarantee that returns are accurate, but frankly – as a sector we’re not doing this well enough today to protect investors.
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We provided the research for a report, in conjunction with Parmenion, which reveals how far short of expectations many adviser platforms are falling. The research found that over the last 12 months, 88% of advisers needed to apologise to at least one of their clients on behalf of a platform, and that poor service delivery from platforms impacts 91% of advisers every day.
We provided the research for a report, in conjunction with Parmenion, which reveals how far short of expectations many adviser platforms are falling. The research found that over the last 12 months, 88% of advisers needed to apologise to at least one of their clients on behalf of a platform, and that poor service delivery from platforms impacts 91% of advisers every day.
Service means a lot of things to a lot of different people. It’s so subjective it can be hard to put your finger on. This paper aims to challenge the status quo and inertia that’s built up in the sector for many years.
