Sean McKinven's Newsround: 7 April

Hello. April is the cruellest month, or something like that.

Seeing as T.S. Elliot was a banker, I suppose it is entirely possible that when he wrote “April is the cruellest month” he was talking about tax year end. More likely – given the rest of the poem – it was more along the lines of modernism’s contrast with earlier English verse that felt April and May were full of darling buds, lambs and renewal; or things that otherwise do not denote any aspect of cruelty.*

TYE is definitely a point in the year in which you want to avoid surprises Where platforms are concerned, it’s nice to get something usable, with a nice enough layout, a decent reputation for service and know where you stand.

Recently I saw a finfluencer on Instagram post an advert where he suggested you should always use a broker with zero commission. An interesting insight when [redacted zero commission platform] is paying him to say that, but seriously? “Always”, without explanation of how these companies make their money.

As oor Steve explains in this Telegraph article: “The key point is that platforms still have to be paid, so the cost often shows up elsewhere in the model rather than as an explicit dealing commission.” The platforms get revenue by retaining some of the interest earned on cash balances, nudging towards paid tiers with higher interest rates or enhanced features, as well as charging foreign exchange fees. “None of that is necessarily bad, but it does mean consumers should compare total costs based on how they actually invest, not just the headline ‘£0 commission’.”

It may be that [redacted zero commission platform] is what’s right for you, but suggesting this is always what people should do as a rule and that the alternative is akin to the Great British Fee Rip-Off is not quite the full story. Fair enough, that might be your opinion and you’re allowed it, but taking money from [redacted zero commission platform] to highlight they’ll give new customers money to open an account with them on your very next story doesn’t feel very Consumer Duty compliant. Posting a wee “capital at risk” and “ad” is not exactly all the information one might need.

It may be easy for the industry to write off influencers as chancers. Naturally, there are good ones out there, but in the war of the algorithm the bad stuff needs an effective challenge. I think this is where messaging becomes important, and is possibly what the FCA is looking for when it talks about providers and the like making sure we have informed consumers. Some of you may suggest it is bold of me to suggest the FCA knows what it wants, but as the regulator takes a lot of flak, let’s give it the benefit of the doubt in this case.

There is more of a stake in society for financial services, which as a sector is hundreds of years old, with business models that rely on it remaining hundreds of years old, and which benefits from a more informed populace. The finfluencer type boasts about retiring at 45 – they only need it to work til then.

* The lamb and its mother may have different views on this depending on your choice of roast.

The News:c

LANG CAT & CLIENT MENTIONS

Copia hires Hooper to accelerate portfolio growth

Ian Hooper joins Copia from Progeny Asset Management.

Source: Money Marketing

Why structured investments deserve another look from advisers

Walker Crips’ Mark Jordan considers if it is worth rethinking attitudes to structured products.

Source: PA Adviser

Pension capital taps UK venture via British Business Bank growth fund

Cushon, among others, has committed to a vehicle designed to help pension schemes invest in UK companies.

Source: IPE

Andrew Tully: Pensions face a new tax reality

Complexities abound.

Source: Money Marketing

Lee Halpin: Don’t write off commercial property in SIPPs

A nuanced look from @sipp.

Source: Money Marketing

Clifton Wealth Partnership buys Essex advice business

Completed acquisition of Cutting & Carter adds about £60m to AUM.

Source: Professional Adviser

ADVISERS

All over-40s should get free advice, Lib Dem peer says

Not so much free as using pension scheme surpluses to fund advice for members.

Source: Citywire NMA

Leader: Are advisers missing the micro-savings movement?

A suggestion there could be growth in a part of the industry that has seen the likes of Moneybox and Plum soar.

Source: Money Marketing

MP: Advisers must have a stronger voice in fixing financial regulation

John McDonnell writes to FT Adviser.

Source: FT Adviser

Transparency gap leaves clients unsure on advice costs

One in five advised clients are not entirely clear on how they are charged, according to a study by Unbiased.

Source: Money Marketing

INVESTING & WEALTH MANAGERS

Saba sets out liquidity proposals for Edinburgh Worldwide

The story with a load of twists and turns offers some more twists and turns.

Source: Investment Week

Young investors driving Stocks & Shares ISA growth

According to Moneybox.

Source: Financial Planning Today

Strategy or a multi-tasker? Discover your distribution pay benchmarks

So for the most part people feel their pay is unfair. The IFS ‘how you fit in’ household income calculator can be a sobering look at pay to give a bit of perspective. Even if you don’t feel well off, it gives a sense of how much better off you are than others.

Source: Citywire WM; IFS

AJ Bell: UK dividend payments to hit all-time highs

Despite a grim macroecnomic outlook, there is still a bullishness on dividend payouts.

Source: Portfolio Adviser

Strategy is entering its desperate stretch

This had my jaw on the floor. So many instances of “that’s not very Consumer Duty of them” in this article.

Source: FT

REGULATION & POLICY

Is it time for advisers to drop the V-word?

Advocating for a different approach to vulnerability.

Source: FT Adviser

Treasury rejects Lords’ IHT on pensions recommendations

Further wranglings are to be expected I reckon.

Source: Professional Adviser

Lenders to have greater flexibility when offering higher LTI mortgages

Last year the Financial Policy Committee recommended that the Prudential Regulation Authority and FCA should amend implementation of its LTI flow limit.

Source: FT Adviser

PLATFORMS

Unveiled: FNZ Select… higher fees, better service?

FNZ launches a premium tier.

Source: Citywire NMA

Clients using ChatGPT to challenge advisers’ recommendations

Some firms are seeing clients use it to design questions or using it to “push back” on advice.

Source: Citywire NMA

They Burned Her at the Stake. And Called It Journalism.

An interesting look at accusations around AI use.

Source: Mark Gottlieb, literary agent

Could a Linkedin AI platform be financial advisers’ ‘best kept secret’?