Hello.
Would you take investment advice from a squirrel?
What if I told you he was “savvy”? If he recognised that inflation would erode his cash savings, or more accurately his paternal squirrels informed him one day over nuts and hummus at the tree hole equivalent of a kitchen island. So, Savvy Squirrel invested his money and now he drinks Mai Tais in a hot tub in a tropical retreat of his choice.
The FT has reported that a “Savvy Squirrel” is going to form part of the Treasury’s campaign to get people more investing. It is artificially generated, wearing a Hawaiian shirt and a few in the industry have, ehm, thoughts on it after a lot of money has seemingly been put into it. The story is linked below.
This does sound like cringe-inducing nightmare. But seeing some of the criticism, it did leave me pondering how the industry itself thinks it is going to create a nation of investors.
One criticism is this ad is due to be run in the autumn. A lot of the financial services people are questioning why this isn’t due to run during ISA season or tax year end. But if this is a public campaign to foster better saving habits then that’s kinda what it has to do. I am not sure the Treasury actually thinks this, but if it has reason to believe people will more likely engage with it in the autumn then that’s when it should run.
This sort of thing doesn’t happen overnight, so I fail to see what benefit rushing out an advert during this ISA season delivers. On a surface level it just comes across as a financial services marketing reflex.
I also get that providers have invested in this campaign and are right to withdraw or call it out if it’s crap – which frankly is looking rather likely.
Among the many barriers to investing, there are two that a significant amount of people face: a) knowledge through financial education and b) trust in the investing process and in providers. The trust bit, in particular, needs work; which is why engaging in campaigns outwith your immediate and inherent benefit might be a good thing sometimes.
Yes, Savvy Squirrel is unlikely to be the solution to the problem. But before you start Treasury bashing, consider what it is you actually want here. Or maybe the squirrel will work and we’ll all look stupid. One can hope.
The News:
LANG CAT & CLIENT MENTIONS
Platform competition has made it easier for investors to ‘shop around’ – FTAdviser
Some cost analysis work we did with the AIC.
Source: FT Adviser
FCA considers letting Level 2 qualified advisers provide simplified advice
Mike pops up as a source in this one. The views in the comments section are less than positive.
Source: Citywire NMA
The advice dividend in an age of retirement uncertainty
When it comes to retirement peace of mind, the benefits of listening to a professional are unparalleled, writes Nucleus’ Andrew Tully.
Source: Professional Adviser
Amal Jolly: Despite market AI fears, advice will always be human | Money Marketing
Saturn’s CEO puts the recent management sell-off into perspective.
Source: Money Marketing
Pensions and taxation are ‘double whammy’ on advisers and clients – FTAdviser
Aberdeen Advisers’ Noel Butwell speaks to FT Adviser.
Source: FT Adviser
ADVISERS
Starting Out: Me and my apprentice, Part One | Money Marketing
Some New Blood considerations in this one.
Source: Money Marketing
‘It’s like the ’90s’: Advisers frustrated with offshore bond providers
Advisers and providers butting heads. A tale as old as time.
Source: Citywire NMA
PROTECTION
Phil Jeynes: What my CV taught me about work culture | Money Marketing
A love letter to a positive working cultures.
Source: Money Marketing
INVESTING & WEALTH MANAGERS
Row brews over ‘savvy squirrel’ campaign to drive UK investment
“Details seen by the FT of the proposed draft design for the campaign, by media agencies M+C Saatchi and the7stars, included two apparently AI-generated images of red squirrels, one in a hot tub and another lounging with a drink by a pool in a Hawaiian shirt.”
Source: FT
Investors reluctant to ‘buy the dip’ after AI scares
Yeesh.
Source: FT
Do we need a Dragons’ Den for investing?
No.
Source: Citywire WM
Palliser Capital unearths Toto’s AI chip advantage
The London-based hedge fund claims Japan’s leading toilet maker could boost its value by 55% if it capitalised on the AI chipmaking technology it has developed. I think we are still a bit early on for AI toilets thank you very much.
Source: The Times
Spotlight: Nobody talks about child trust funds maturing into adulthood | Money Marketing
One to keep in mind for your next dinner party. In all seriousness this is a really interesting article and one that I wished I could have pointed to last week vis a vis financial education.
Source: Money Marketing
Schroders takeover shows US interest in UK companies – FTAdviser
I would say spending £9bn on anything is a pretty good indication of interest.
Source: FT Adviser
REGULATION & POLICY
FCA’s Nikhil Rathi confirms there will be ‘less rules in the future’ – FTAdviser
Wait and see, you may be less angry than you were 18 months ago.
Source: FT Adviser
Inheritance tax receipts hit £7.1bn: reaction | Money Marketing
John Rawles liked that.
Source: Money Marketing
Tribunal upholds FCA ban of adviser and DFM over £10m scheme
Source: Citywire NMA
Firms avoid questions about abuse for fear of annoying customers
This is leaving many without support, warns vulnerability specialist Morgan Ash.
Source: Money Marketing
TECHNOLOGY AND AI
Dear ChatGPT, please construct me an optimal portfolio
“AI is already smarter and more knowledgeable than all financial advisers,” says ever fond of controversy Stuart Kirk. His reasoning though is pretty limited to model portfolio construction.
Source: FT
Weekend Essay: Why I would rename virtual work experience | Money Marketing
I approve.
Source: Money Marketing
The financialisation of AI is just beginning
This made me feel slightly queasy. Products developed for investors to hedge and invest in chips and the like.
Source: The Economist
My week with the AI populists: A DC report – by Jasmine Sun
Source: Jasmine Sun
PENSIONS & RETIREMENT
State pension and triple lock in current form have no future | Money Marketing
The state pension and the triple lock need to become more “economically realistic,” and changes must be made in order to survive, according to Standard Life retirement & savings director Mike Ambery.
Source: Money Marketing
John Moret: Twenty years on, are pensions any simpler? | Money Marketing
Interesting. One of the only articles I have seen in the trade press mention AI research casually in a piece which is not about AI.
Source: Money Marketing
I’m 27 earning £43,000 but can’t afford to pay into a pension. My mum’s doing it for me
This reads a bit like “I have the ability to have my mum as a personal pension contributor so I am going to opt out of my workplace pension to get extra cash upfront and present it as a cost-of-living issue.”
Source: The I
Are the UK’s public sector pensions unaffordable?
A lot of interesting insight on this one. Quite balanced as well and looks at various avenues for reform. One particularly shocking bit was that some of the lowest paid council workers are opting out due to cost of living pressures. I doubt their mums are topping up a SIPP for them.
Source: FT
1 in 7 parents plan to spend kids’ inheritance
Well some people are not getting parental boosts to their pensions.
Source: Financial Planning Today
TRADE & ECONOMY
UK sees record number of young millionaires – FTAdviser
The research suggests that it is sports, content creators and the like.
Source: FT Adviser
UK unemployment rate hits five-year high of 5.2% as wage growth cools
Some uncomfortable numbers.
Source: The Guardian
UK inflation falls to 3%, giving hopes of early cut in interest rates
Some more comfortable numbers.
Source: The Guardian
UK reports record-breaking budget surplus of £30.4bn in surprise boost for Rachel Reeves
Some very comfortable numbers. Also strong retail sales and private sector growth.
Source: The Guardian
UK proposes audit changes to attract Chinese listings
The UK accounting regulator is considering changes to strict auditing rules to encourage more Chinese companies to list in London in response to a government push to revive the City’s flagging stock market.
Source: FT
Don’t go after the rich to fix broken budgets
The Economist tells readers “don’t worry we’re not the problem; now smugly pass it on that we’re not the problem.”
Source: The Economist
UK bank bosses plan to set up Visa and Mastercard alternative amid Trump fears
Worries we are a bit exposed if he does something drastic.
Source The Guardian
CRAZY CAT STORIES
Larry the Cat’s best moments from his 15 years in Downing Street
A look into the cat’s time in no.10.
Source: Sky News
OUTSIDE THE TRADE
Catholic Bishop carried a sink up a hill -here’s why | Glasgow Times
To brush his teeth of course. No – really.
Source: Glasgow Times
Sean McKinven is PR account executive at the lang cat
