Financial Services newsletter Friday 1st November 2024

Financial Services News

Will AI change the role of a Paraplanner? - AI is steadily impacting paraplanning tasks by automating repetitive activities like compliance checks, allowing paraplanners to focus on strategic client support and financial planning. This shift lets paraplanners delve into specialised areas, helping them become strategic partners rather than data processors. But how do the majority view AI and what are the risks? (IDEX Consulting news, 'Will AI change the role of a Paraplanner?')
Flexible Working Bill: what you need to know - The UK's Flexible Working Bill allows employees to request flexible working from day one, with employers required to respond within two months and consult if declining. The law aims to improve work-life balance, offering employees more control over their schedules, which is expected to enhance productivity and job satisfaction across various sectors. (IDEX Consulting news, 'Flexible Working Bill: what you need to know')
What to consider before accepting a counter-offer - Before accepting a counteroffer, consider the long-term implications. While it may offer higher pay or better benefits it might not solve the original reason for your dissatisfaction. Accepting could also impact your relationship with your employer, as they may question your loyalty. Compare your current position against new opportunities to ensure alignment with your career goals. (IDEX Consulting news, 'What to consider before accepting a counter-offer')
Wealth Management market outlook - The 2024 Wealth Management market outlook highlights challenges and opportunities in the industry, including adapting to regulatory changes, client demand for personalisation, and the growing role of technology and sustainable investing. Firms are focusing on enhancing client experiences through digital tools and expanding ESG-focused portfolios. This environment may drive a shift towards more specialised advice and strategies tailored to individual investor goals, balancing innovation with client trust. (IDEX Consulting news, 'Wealth Management market outlook')
In April, Employers' National Insurance will rise from 13.8% to 15%, while Employee contributions remain unchanged, as part of Chancellor Rachel Reeves' Budget plan to increase taxes by £40bn to address government deficits and fund compensation for Post Office and tainted blood victims. (Financial Planning Today, 30/10/2024, 'Budget: Employers' NI rises as tax take grows')
Quilter reported core net inflows of £1,507m for Q3, marking a 5% increase in opening AUMA, with total client assets reaching £116.2bn; the high-net-worth segment saw a turnaround with £284m net inflows, compared to £116m in outflows in Q3 2023, and gross flows rose to £817m from previous quarters. (Financial Planning Today, 16/10/2024, 'Quilter sees 63% rise in net inflows for Q3')
Evelyn Partners’ AUM/A rose 13% year-on-year to a record £62.7bn as of 30 September, despite Q3 net inflows dropping to £0.2bn due to £353m in outflows from closing its legacy execution-only service, impacting only this quarter; total gross outflows were £1.7bn. (Financial Planning Today, 23/10/2024, 'Evelyn Partners closes legacy execution-only arm')
Chancellor Rachel Reeves confirmed the CPI inflation target will remain at 2% amid a £40bn tax rise Budget aimed at economic stability. She pledged not to borrow for daily spending and noted that recent lower fuel and transport costs reduced CPI inflation to 1.7% in September, down from 2.2% in August. (Financial Planning Today, 30/10/2024, 'Budget: Inflation target to remain at 2%')
A survey by AJ Bell found nearly all of 131 financial advisers reported a surge in client inquiries on pensions and wealth management, driven by concerns over potential tax hikes in Chancellor Rachel Reeves' upcoming Budget on 30 October. (Financial Planning Today, 21/10/2024, 'Advisers see surge in enquiries due to Budget jitters')
Schroders and Phoenix Group launched Future Growth Capital, a private markets manager led by Paul Forshaw as CEO, with James Harvey as CFO, Mike Chappell heading origination, and Ped Phrompechrut as CIO; the firm aims to support the Mansion House compact's goal of directing 5% of UK pension funds into private assets by 2030. (Selin Bucak, 2/10/2024, Citywire Wealth Manager, 'Schroders reveals leadership lineup for new private markets business')
Veteran fund managers Henry Francklin and Charles Empson departed Brown Advisory and Polar Capital in August to launch Hermod Capital, a third-party distribution firm, opening their London office in September. They partnered with Circulus, a Swedish small- and micro-cap team operating under the Coeli funds umbrella. Circulus' fund managers—Christofer Halldin, Simon Park, and Joakim By—joined from Handelsbanken in 2022, bringing a robust track record, including a 113% return on the Handelsbanken US Small Cap fund over five years, outperforming the index’s 75% gain. (Dylan Lobo, 3/10/2024, Citywire Wealth Manager, 'Brown Advisory and Polar Capital sales veterans form new business')

Tatton Asset Management, the UK’s largest managed portfolio service (MPS) provider, is nearing £20bn in total assets after reporting £1.8bn in net inflows for the six months ending September, significantly up from £910m in the same period last year. Total group assets surpassed £19.9bn, bolstered by over £0.5bn in market gains and £1bn from assets managed by 8AM, in which Tatton has a stake. (Jeremy Gordon, 15/10/2024, Citywire Wealth Manager, 'Tatton reports record inflows as AUM nears £20bn')
A new poll reveals that 53% of IFAs doubt the Labour Government's economic competency, with only 10% believing it is better for business than the Conservatives. Almost half (47%) feel the government doesn't prioritize the nation's best interests, highlighting concerns about Labour's economic management ahead of Chancellor Rachel Reeves' Budget announcement. (Financial Planning Today, 30/10/2024, 'More than 1 in 2 IFAs question Labour competency')
A majority of Hargreaves Lansdown (HL) shareholders voted in favour of the £5.4bn acquisition, clearing a key hurdle for the expected takeover by a private equity consortium, including Abu Dhabi’s sovereign wealth fund. The vote revealed significant investor dissent, with 71.3% of shareholders supporting the deal and 86.7% of shares by value in favour. (Jeremy Gordon, 15/10/2024, Citywire Wealth Manager, 'Shareholders approve Hargreaves Lansdown takeover')
St James’s Place (SJP) partners have previewed a new tiered charging structure set to launch in the second half of 2025. Clients will pay a fee based on their investment size, with an initial advice charge to SJP that will allocate a portion to the partner. The changes, announced last October in response to the consumer duty, will also eliminate exit fees, reduce product charges, and unbundle fees for various services. (Jack Gilbert, 17/10/2024, Citywire Wealth Manager, 'SJP reveals first details of new advice fee model')
Moneybox, backed by Fidelity fund manager Anthony Bolton, has secured £70m in new investment, marking the second-largest minority wealth tech investment in the UK for 2024. The round was led by Apis Global Growth Fund III, with support from Amundi, joining existing investors like Fidelity International Strategic Ventures and Oxford Capital to help accelerate the company’s growth. (Dylan Lobo, 23/10/2024, Citywire Wealth Manager, 'Duo pour £70m into digital wealth firm backed by Fidelity legend Bolton')
Former Ruffer Business Development Director Toby Barklem has launched Minos Wealth Planning (MWP), a London-based financial planning firm incorporated on 24 July and recently approved by the FCA. MWP is an appointed representative of the New Leaf Distribution network, which comprises over 250 advisers. (Dylan Lobo, 25/10/2024, Citywire Wealth Manager, 'Ex-Ruffer business development director launches new firm')
Wealth manager St James’s Place reported a record £184.4bn in assets under management as of 30 September, up from £158.6bn in Q3 2023, despite net inflows dropping to £0.89bn, a 35% decrease quarter-on-quarter and 2% year-on-year. Gross inflows rose 20% year-on-year to £4.4bn, attributed to increased client engagement ahead of the Autumn Budget, although this figure was slightly lower than £4.56bn in the previous quarter. Year-to-date client retention remained stable at 94.6%. (Financial Planning Today, 17/10/2024, 'SJP hits assets record despite drop in net flows')

Mergers and Acquisitions

CBPE Capital LLP has made a strategic investment in Bristol-based wealth and pensions manager Clifton Asset Management to accelerate its acquisition program. The investment, which involves collaboration with Clifton’s management team, including CEO Neil Greenaway, will support both organic growth and strategic acquisitions. The deal is pending regulatory approval. (Financial Planning Today, 31/10/2024, 'Private equity firm invests in £1.8bn AUM Bristol Planner')
Financial Planning-focused national adviser Foster Denovo has acquired East Midlands firm 80Twenty, marking its fifth acquisition in the past year and adding £500m in AUM/A, a 13th UK office, and its first base in the East Midlands. The acquisition price was not disclosed. Four advisers—Neil Welbury, Jackie Worby, David Catterall, and Stuart Annable—along with six support staff, will join Foster Denovo, which will now serve about 120 private clients, including several high-profile corporate clients. (Financial Planning Today, 29/10/2024, 'Foster Denovo acquires £500m AUM/A Midland adviser firm')
WTW has acquired an undisclosed minority stake in private equity-backed Atomos, enhancing its growth strategy following a strategic alliance formed in 2022. Mark Calnan, head of Investments for Europe at WTW, noted that this investment extends their capabilities to a wider audience. With this stake, WTW aims to provide additional capital to support Atomos, which manages £7bn in assets. Atomos was previously Sanlam UK Wealth until rebranding after its acquisition by Oaktree in 2021. (Dylan Lobo, 3/10/2024, Citywire Wealth Manager, 'WTW acquires stake in PE-backed Atomos')
Cazenove Capital has acquired London-based family office Whitley Asset Management (WAM), with founder Edward Whitley and his 10-member team joining Cazenove, while Co-Founder Louise Rettie retires; the deal's value was not disclosed. (Dylan Lobo, 7/10/2024, Citywire Wealth Manager, 'Exclusive: Cazenove Capital buys £1.5bn London family office')
Brooks Macdonald is expanding its financial planning services with a £45m acquisition of Lift, paying £30m at completion and an additional £15m contingent on client retention and Ebitda targets; the deal, including Lift Financial Group and Lift-Invest, is expected to finalize by the end of March, after which the Lift team will join Brooks. (Dylan Lobo, 8/10/2024, Citywire Wealth Manager, 'Brooks Macdonald strikes £45m deal for £1.6bn advice business')
Söderberg & Partners has expanded its investment portfolio by acquiring minority stakes in four more UK advice businesses, bringing its total to over 20 firms. The investments include Nottingham-based George Square, with £400m in assets under management (AUM); Cheltenham IFA, with £290m AUM; London-based Bluezone Capital, with £190m AUM; and nationwide firm Alexander Bates Campbell, which also operates a European private client subsidiary. (Julian Bovill, 21/10/2024, Citywire Wealth Manager, 'Nordic wealth manager buys stakes in four more UK firms')
Investment consultancy Redington has been acquired by Arthur J Gallagher & Co for an undisclosed sum, with CEO Sylvia Pozezanac and her team remaining in place, while Gallagher, a global insurance brokerage with a market cap of $63bn (£48.56bn), oversees Redington's operations amidst SJP's reduced use of external consultants. (John Schaffer, 25/10/2024, Citywire Wealth Manager, 'Redington sold to insurance giant Gallagher')
Titan Wealth has agreed to acquire Ravenscroft Investments Limited, a Channel Islands wealth manager with £7.9bn in AUM, for an undisclosed sum, subject to shareholder and regulatory approval; Ravenscroft will rebrand as Titan Wealth International next year, while its corporate finance and property management divisions will remain separate, with Founder Jon Ravenscroft continuing as a significant shareholder. (Financial Planning Today, 24/10/2024, 'Titan Wealth buys £7.9bn AUM Channel Islands firm')
Fast-growing Financial Planning group Perspective has completed four new acquisitions—Clayden Financial Planning in Ipswich, PW White & Partners in Amersham, Constellation Financial Solutions in Darlington, and a longstanding self-employed adviser in Newcastle upon Tyne—bringing its total to 15 this year, adding £350m in assets under advice, 940 households as clients, and two new offices, raising its total to 41 offices; the group has now made 93 acquisitions overall. (Financial Planning Today, 16/10/2024, 'Perspective makes 4 acquisitions')
Financial Planning firm Ascot Lloyd has acquired Scottish adviser Create and Prosper Financial Services for an undisclosed amount, adding £254m in assets under administration; Ascot Lloyd's Acquisitions Director, Gordon Kerr, highlighted that the deal enhances their national footprint and aligns with their ongoing M&A strategy to identify high-quality businesses that fit their culture and values. (Financial Planning Today, 14/10/2024, 'Ascot Lloyd acquires £254m AUA adviser')

Movers

Brooks Macdonald COO and CTO Caroline Abbondanza, who joined from FNZ in 2019, left the firm in August. She became COO in early 2023 after Lynsey Cross's departure, one of three senior exits at the time. Brooks declined to comment. (Dylan Lobo, 31/10/2024, Citywire Wealth Manager, 'Revealed: Brooks Macdonald operating chief exits')
Anna Macdonald has joined Aubrey Capital Management as an Investment Manager, following roles at Amati Global Investors, where she co-managed the UK Listed Smaller Companies fund, and a brief position at Sustineri Global Investment. She previously served as an Executive Director at Adam & Co and is a frequent BBC radio contributor. (John Schaffer, 4/10/2024, Citywire Wealth Manager, 'Anna Macdonald resurfaces at Aubrey Capital')
Carolyn Bell, with 16 years of experience, has joined Stonehage Fleming as Deputy Manager of the £2bn Global Best Ideas (GBI) Equity strategy, supporting Gerrit Smit. Previously at Aegon, she managed US, global equities, and tech strategies, following five years as an Investment Analyst at Baillie Gifford. (Sophie Downes, 8/10/2024, Citywire Wealth Manager, 'Stonehage Fleming adds new signing to £3.8bn strategy')
Wealth manager Brown Shipley has hired Robbie Hewitt as a Wealth Planner for its Edinburgh office; Hewitt, with over 10 years of financial services experience, joins from JKFS and previously worked as a Mortgage Adviser at the Royal Bank of Scotland. (Financial Planning Today, 29/10/2024, 'Brown Shipley hires new planner for Edinburgh')
True Potential has appointed Gerry Mallon, currently Head of Tesco Bank, as CEO starting in early 2025, following Daniel Harrison's announcement of his departure; in the interim, True Potential’s Chief Investment Officer Jeff Casson will serve as CEO until Mallon assumes the role, bringing experience from his six years at Tesco and previous leadership at Ulster Bank Ireland. (Julian Bovill, 7/10/2024, Citywire Wealth Manager, 'True Potential announces Tesco Bank chief as new CEO')
Amanda Tovey has been appointed Head of Avellemy Private Wealth (APW) as it integrates with Whitechurch Securities, following FCA approval for Ascot Lloyd's acquisition of Whitechurch; Tovey will maintain her role as Head of SRI at Whitechurch and acting Head of APW until she transitions to the full-time position next year, having joined Whitechurch in 2012 after working as a Portfolio Manager at Barclays Wealth. (Natalia Vasnier, 7/10/2024, Citywire Wealth Manager, 'Revealed: Avellemy picks wealth head after Whitechurch deal')
Martin Blank, Head of Manager Research at Schroders, will step down this month after over 20 years with the firm, having joined as a graduate analyst in 2001 and progressing to oversee a 10-member team responsible for billions in assets invested with external managers. (Joseph Eden, 9/10/2024, Citywire Wealth Manager, 'Schroders veteran head of manager research to exit')
Titan Wealth has appointed Matt Hodey from PwC as Senior Risk Adviser amid an ongoing legal dispute with Tavistock; Hodey previously served as a Compliance and Risk Director at PwC and was a Director of Risk and Controls at Prudential. (Zachariah Sharif, 11/10/2024, Citywire Wealth Manager, 'Titan hires PwC risk director as Tavistock row rumbles on')
Private equity-backed Attivo has appointed Jo French, former Schroders Director, as its first CEO, aiming to re-enter the discretionary fund manager (DFM) space; she will oversee the investment operations team and the firm's investment platform strategy. French previously served as COO at Benchmark Capital and held adviser sales roles at Sipp provider Hornbuckle before joining Schroders in 2022. (Victoria Bell, 14/10/2024, Citywire Wealth Manager, 'Attivo hires ex-Schroders director as CEO with eye on DFM launch')
Royal London has appointed Iain McLeod as Director of Investment Proposition. He previously served as Head of Investment Proposition at M&G Wealth until June 2023. Before that, McLeod spent over 35 years at Abrdn and Standard Life in various investment roles, including Global Head of Multi-Manager Investment Specialists at Abrdn and Head of Investment Proposition at Standard Life from 2005 to 2011. (Nicola Blackburn, 16/10/2024, Citywire Wealth Manager, 'Royal London hires M&G Wealth’s investment boss')
Fidelity International has hired Ravin Seeneevassen, reuniting him with former Allianz Global Investors colleague Mike Riddell, who joined Fidelity in July. Seeneevassen will start in London next month, bringing 17 years of experience, including his previous role as Lead Manager on the Allianz Fixed Income Macro strategy and supporting Riddell on several funds. (Jeremy Gordon, 17/10/2024, Citywire Wealth Manager, 'Exclusive: Fidelity adds Mike Riddell’s old Allianz colleague to bond team')
Titanbay has appointed Michael Gruener, formerly Managing Director of strategic clients EMEA at BlackRock, as Co-CEO, joining existing CEO Ossama Soliman. With over 20 years of wealth management experience, Gruener previously worked at Goldman Sachs for nine years, reaching the Executive Director level before joining BlackRock in 2012. (Sophie Downes, 23/10/2024, Citywire Wealth Manager, 'Exclusive: Titanbay hires BlackRock veteran for CEO post')
LGT Wealth Management has appointed Phoebe Stone as Chief Sustainability Officer in the UK to enhance its green credentials with potential clients. Stone has been managing the firm's sustainable investment proposition since its launch in 2018. (Natalia Vasnier, 24/10/2024, Citywire Wealth Manager, 'LGT Wealth Management makes new green push with Stone’s promotion')
Sandra Dailidyte has joined Cazenove Capital as a Portfolio Manager in a newly created Scottish role, moving from her position as an Investment Director at Brown Shipley, where she spent over five years. Cazenove Capital aims to strengthen its commitment to the Scottish entrepreneur community with this appointment. Previously, Dailidyte held roles at Seven Investment Management and Standard Life as a Private Client Manager and Proposition Development Analyst. (Sophie Downes, 24/10/2024, Citywire Wealth Manager, 'Brown Shipley director exits for new Cazenove Capital Scotland role')
Anders Lindegaard, who won the Premier League trophy with Manchester United in 2013, has transitioned from football to finance as a Business Development Specialist at UBS. The former goalkeeper, signed for £3.5m by Sir Alex Ferguson in 2010, will focus on providing wealth management services to top athletes and enhancing UBS's understanding of their needs. (Zachariaf Sharif, 25/10/2024, Citywire Wealth Manager, 'From Man Utd to UBS: Fergie’s £3.5m title winner starts new job')
Wren InvestmentOffice has expanded its team with four new hires, including Jo Robinson as Client Relationship Director. Robinson brings 20 years of experience with ultra-high-net-worth clients, having previously worked at Kleinwort Benson and Barclays Private Bank. Alongside her, Vladislava Cusnir joins as Client Reporting Associate, Tiwalola Obadeyi as Client Relationship Assistant, and Savan Shah as Operational Associate, all contributing to Wren's focus on sustainable growth. (Natalia Vasnier, 28/10/2024, Citywire Wealth Manager, 'Wren Investment Office hires former Barclays banker for endowment push')
BHP has expanded its financial advice business by adding Jonathan Lecomber as a Senior Financial Planner from Succession Wealth, bringing over 10 years of experience. Additionally, Tim Clasper has been promoted to the senior management team after completing the PDW Management Academy, having worked at BHP Financial Planning since 2019. (Financial Planning Today, 17/10/2024, 'Accountancy firm adds senior Planner in growth push')
Hoxton Wealth has welcomed Dewi Evans, an experienced Financial Planner, to its Dubai team. An associate member of the CISI, Evans has over seven years of financial planning experience, with the last six dedicated to providing wealth advice in Dubai. (Financial Planning Today, 14/10/2024, 'Hoxton Wealth adds Financial Planner to UAE team')
AJ Bell has strengthened its executive committee with the appointments of Ryan Hughes and Stephen Westgate. Hughes, who has been with AJ Bell since 2016, has been named Managing Director of AJ Bell Investments after serving as Interim Managing Director since late 2023. Westgate joins as Group Corporate Development Director, previously holding the position of Managing Director and Head of Financial Institutions at Deutsche Numis. (Financial Planning Today, 10/10/2024, 'AJ Bell hires 2 for leadership team')