Financial Services News
The gender pay gap in Financial Services - To tackle the gender pay gap in financial services, focus on advancing into senior roles by honing your leadership and negotiation skills. Keep up with industry trends, such as pay equity and flexible working policies. Networking with leaders who champion diversity, gaining accreditations, and seeking mentorship can also elevate your career trajectory. Employers value proactive individuals who push for equality while advancing their expertise. (IDEX Consulting news, 'The gender pay gap in Financial Services')
The impact of robo-advisers on the Financial Services market - Robo-advisers are transforming financial services by offering low-cost, automated investment solutions. To stay relevant, professionals should enhance their digital skills and focus on personalised services for high-net-worth clients. Embracing this technology will help financial advisers compete in a tech-driven market. (IDEX Consulting news, 'The impact of robo-advisers on the Financial Services market')
In-demand skills: how to set yourself apart from the competition - To stand out in today’s competitive market, focus on building a mix of soft and technical skills. Employers prioritise problem-solving, critical thinking, and effective communication. Stay updated on new technologies like AI, and continuously develop your professional skills through learning and mentorship. The key is aligning your skills with employer expectations to remain relevant and competitive. (IDEX Consulting news, 'In-demand skills: how to set yourself apart from the competition')
7 tips to negotiate your pay rise - To negotiate a pay rise effectively, research industry salaries, believe in your value, and present your achievements. Prepare by scheduling a meeting in advance, practicing with someone, and staying calm during negotiations. If pay isn’t negotiable, explore other benefits like flexible working or extra annual leave. Always follow up with an email to document the discussion. (IDEX Consulting news, '7 tips to negotiate your pay rise')
The FCA has fined Starling Bank nearly £29m for financial crime failings related to its financial sanctions screening and for repeatedly breaching a requirement not to open accounts for high-risk customers; the bank was initially facing a fine of almost £41m but received a 30% discount by agreeing to resolve the breaches and enhance its controls. A 2021 review by the FCA highlighted serious concerns with Starling's anti-money laundering and sanctions framework, leading to restrictions on opening new accounts for high-risk customers until improvements are made.(Financial Planning Today, 2/10/2024, 'FCA fines Starling Bank £29m over screening failures')
Data from Royal London reveals that by age 55, women have on average 43% less in their pension pot than men, with significant differences in pension contributions based on age, job type, and income; despite nearly equal participation rates in pension saving, women consistently save less throughout their careers, with the gender pension gap widening from 16% in their 30s to 43% by age 55, impacting their financial security in retirement. (Financial Planning Today, 2/10/2024, 'Gender pensions gap soars to 43% at 55')
Tavistock's full-year results highlighted escalating legal tensions with Titan Wealth, as both firms have a shared interest in the fate of collapsed advice firm LEBC, in which Tavistock took a 21% stake before it was sold to Titan-owned Aspira. (Nicola Blackburn, 1/10/2024, Citywire Wealth Manager, 'Titan’s £45m deal adds fresh angle to Tavistock dispute')
Albion Strategic Consulting is partnering with P1 Investment Services to offer its smartersuccess investment service on a discretionary basis, with P1 handling execution and portfolio management, while Albion continues to support advisers with portfolio construction, governance, and client communications. (Sophie Downes, 30/9/2024, Citywire Wealth Manager, 'Albion partners with P1 for discretionary service')
HSBC plans to leverage its academy training program to recruit hundreds of new staff for a renewed focus on the UK wealth and advice sector, aiming to double its assets under management from £50bn over the next five years, driven by a consumer shift away from independent financial advisers, according to Managing Director for customer channels Christopher Dean. (Sophi Downes, 26/9/2024, Citywire Wealth Manager, 'HSBC leans on academy to capitalise on ‘shift away from IFAs’)
Rathbones reported a £200m net inflow in the second quarter, reversing the £600m outflow from the first quarter, with underlying pretax profit surging 120.7% to £112.1m, attributed to a slowdown in senior investment manager departures; this comes amid plans for Investec W&I to merge its bespoke arm with Rathbones’ £45bn bespoke division, marking a significant step in the Rathbones-Investec merger. (Zachariah Sharif, 24/9/2024, Citywire Wealth Manager, 'Investec W&I’s investment assurance lead leaves after 15 years')
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Paymentshield has launched a referral proposition aimed at helping advisers protect more clients by allowing them to either refer clients to in-house insurance specialists for scheduled advice or provide instant automated quotes via email or text for Home and Landlord’s Insurance, ensuring that clients can still access support from Paymentshield’s referral team during their online journey. (Momodou Musa Touray, 18/9/2024, Money Marketing, 'Paymentshield launches adviser referral proposition')
The Platform Association has been launched as a trade body for platforms amid increased regulatory scrutiny, providing members a confidential space to engage with regulators and policymakers; founding members include Abrdn, Aegon, Fidelity, Quilter, Seccl, and SS&C, with an additional 20 platforms and 15 affiliate members verbally committed to join, while discussions are ongoing with around 60 others. (Victoria Bell, 23/9/2024, Citywire Wealth Manager, 'Quilter, Abrdn and Fidelity join rivals to launch platform trade body')
West Sussex-based high net worth specialist Servo Private Wealth has been awarded CISI Chartered Firm status, joining a select group of only 20 such firms in the UK; the CISI, which also awards the Certified Financial Planner designation, recognizes firms that meet specific criteria, including regulatory recognition, having at least 50% of staff chartered with CISI, implementing a CISI qualifications and CPD program, and aligning with the CISI Code of Conduct. Servo Private Wealth focuses on serving high net worth business owners and their families across the UK. (Financial Planning Today, 26/9/2024, 'West Sussex Planning firm gains Chartered status')
Acquisitive wealth manager Kingswood reported that group assets under advice and management (AUA&M) reached £12.9bn by the end of June, marking an 8.2% year-on-year increase; operating profits rose 21% to £6.1m, while revenue increased by 14% to £40.6m. In its half-year results, Kingswood noted that UK & Ireland assets under advice (AUA) totaled £6bn, aided by the acquisition of Dublin retirement planning firm BasePlan in February, while UK & Ireland assets under management (AUM) stood at £3.7bn. (Financial Planning Today, 30/9/2024, 'Kingswood AUM climbs 8.2% to £12.9bn')
Mergers and Acquisitions
Tavistock Investments has sold its network advice arm to private equity-backed Saltus for up to £37.8m, with an initial £22m payment and up to £15.8m in deferred payments, marking the end of a challenging period for Tavistock and expanding private equity's presence in the UK advice market. (Victoria Bell & Nicola Blackburn, 1/10/2024, Citywire Wealth Manager, 'Tavistock sells advice network to Saltus in £38m deal')
Close Brothers Group has confirmed the sale of its wealth management arm, Close Brothers Asset Management (CBAM), to private equity firm Oaktree for up to £200m, following exclusive talks that resumed in July; this deal highlights the growing trend of UK wealth management businesses being acquired by private equity, shortly after the significant sale of Hargreaves Lansdown. (Jeremy Gordon, 19/9/2024, Citywire Wealth Manager, 'Close Brothers Asset Management sold to private equity for £200m')
Skerritts Group has acquired Harrogate-based Ellis Bates Financial Advisers for an undisclosed sum, completing the transaction at the end of September after receiving regulatory approval; this acquisition adds over £1bn in assets under management and strengthens Skerritts' presence in the North of England as the group aims for national expansion with support from Sovereign Capital Partners. (Momodou Musa Touray, 17/9/2024, Money Marketing, 'Skerritts buys Harrogate-based advice firm')
WTW has acquired an undisclosed minority stake in private equity-backed Atomos, providing the wealth firm with additional capital to support its growth strategy; this investment builds on the strategic alliance formed between the two in 2022. Mark Calnan, Head of Investments for Europe at WTW, stated that the investment extends their capabilities to a broader audience. As part owner of Atomos, which manages £7bn in assets, WTW aims to enhance the firm's growth potential. Atomos rebranded from Sanlam UK Wealth after being acquired by private equity firm Oaktree in 2021. (Dylan Lobo, 3/10/2024, Citywire Wealth Manager, 'WTW acquires stake in PE-backed Atomos')
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Movers
Charlotte Aspinall has rejoined Charles Stanley as a Senior Investment Manager at its Tunbridge Wells branch, seven years after leaving the firm where she began her career in 2000, having since gained experience at Hurley Partners and Mattioli Woods. (Dylan Lobo, 2/10/2024, Citywire Wealth Manager, 'Charles Stanley alumna returns home after Mattioli Woods stint')
Paul Killik is stepping back from day-to-day leadership at Killik & Co, the wealth business he founded in 1989, with Clem MacTaggart, formerly Chief Strategy Officer, and Sarah Threadgould, who joined as Chief Marketing Officer in 2019 from Which?, appointed as joint Managing Partners, while Killik remains as Chairman and his daughter, Georgie Killik, becomes Chief Strategy Officer. (Dylan Lobo, 1/10/2024, Citywire Wealth Manager, 'Paul Killik steps back from his wealth business')
Deutsche Private Bank has restructured its central European business to offer ultra-high-net-worth clients a dedicated service, forming a markets investment team led by Liya Rozman, who previously headed the investment managers unit for Emerging Europe and Switzerland, and Adam Bergenfield for traders, while Sean Magee continues to lead the US investment management business, all with a focus on expanding client numbers and providing direct capital markets access. (Sophie Downes, 30/9/2024, Citywire Wealth Manager, 'Deutsche Private Bank shakes up investment arm')
Nick Swales has retired as Regional Director of Rathbones' Newcastle office, which he helped launch 11 years ago, and has been succeeded by Co-Founder James Kyle, who has served as an Investment Director since 2013, with the office now managing around £825m in funds and employing about 20 staff. (Jeremy Gordon, 30/9/2024, Citywire Wealth Manager, 'Founding head of Rathbones Newcastle office retires')
Helen O’Neill, the former Chief Operating Officer of Tatton Investment Management, has joined Whitman Asset Management as a Senior Adviser, following her departure from Tatton in March after seven years, during which she helped grow assets under management from £4bn to £17bn. (Dylan Lobo, 27/9/2024, Citywire Wealth Manager, 'Ex-Tatton COO Helen O’Neill joins boutique')
7IM has expanded its investment team with the hiring of Asim Qadri and Brian Leitao as Investment Managers; Qadri, who has over a decade of experience, joins after three years at Abrdn, while Leitao comes from Mercer, where he was a Senior Investment Research Analyst, and previously worked at Fundhouse, EQ Investors, and Morningstar. These hires follow the recent appointment of Elizabeth Chambers as an Independent Non-Executive Director at 7IM. (Sophie Downes, 26/9/2024, Citywire Wealth Manager, '7IM boosts investment team with Abrdn and Mercer hires')
Jessica Lewry has left her role as Head of Investment Manager assurance at Investec W&I after 15 years, making her the most high-profile departure since Portfolio Management Head Jon Walker left last month; Lewry, who joined in 2009 from Merrill Lynch, spent nearly six years in her latest role after advancing from Project Manager and Investment Risk Manager. (Zachariah Sharif, 24/9/2024, Citywire Wealth Manager, 'Investec W&I’s investment assurance lead leaves after 15 years')
Premier Miton has appointed Nicola Stronach as Chief Operations Officer, following the recent launch of its model portfolio service; Stronach previously served as Director of Operations at Quilter Investors for three years and has also held roles at Credit Suisse, BNY Mellon, and Merian Global Investors. (Natalia Vasnier, 23/9/2024, Citywire Wealth Manager, 'Premier Miton hires Quilter operations director')
Former Charles Stanley Investment Chief Jon Cunliffe has joined JM Finn as Head of the Investment Office, returning to wealth management after nearly three years at non-profit firm B&CE; prior to his tenure at Charles Stanley, Cunliffe held various fixed income roles at Lombard Odier, ABN Amro, and Aberdeen Asset Management, where he led global fixed income macro strategy. (People Moves, 20/9/2024, Citywire Wealth Management, 'Ex-Charles Stanley CIO takes new JM Finn investment role')
Schroders has appointed Meagen Burnett as its new Chief Financial Officer (CFO), succeeding Richard Oldfield, who became group Chief Executive earlier this month; Burnett, who joined Schroders in January 2023, has over 25 years of experience in financial services, including roles at M&G, J.P. Morgan, Goldman Sachs, and KPMG. She will serve as interim CFO starting 8 November 2024, until her formal appointment on 1 January 2025, while Schroders’ group Chief Investment Officer, Johanna Kyrklund, will also join the executive board. (Dan Cooper, 26/9/2024, Money Marketing, 'Schroders appoints Burnett as new CFO')
Sesame Bankhall Group (SBG) has appointed Toni Smith as Distribution Director to lead its adviser network Sesame; with over 35 years of experience in the intermediary sector, Smith will focus on growing the Sesame business and enhancing the network's mortgage and protection propositions. She joins from PRIMIS Mortgage Network, where she served as Chief Operating Officer and later Chief Distribution Officer, and previously held the role of Business Operations Director at First Complete Limited for 10 years. (Momodou Musa Touray, 18/9/2024, Money Marketing, 'Sesame Bankhall hires new director to lead adviser network')
National advice firm One Four Nine has appointed Martyn Southam, a former Manager at Succession Wealth, as Regional Director; Southam brings 35 years of experience in the financial services sector, having worked with mutuals, banks, product providers, and networks. (Momodou Musa Touray, 17/9/2024, Money Marketing, 'One Four Nine hires from Succession to boost regional expansion')
The Personal Finance Society (PFS) has appointed Carla Brown as its new President; Brown is the Managing Director of St James’s Place partner firm Oakmere Wealth Management Ltd in Cheshire and also serves as a Director of CL Wills and Estate Planning. A Chartered Financial Planner and Fellow of the PFS, she is an accredited Later Life Adviser and holds a Certificate in Relational Financial Planning, along with an MSc in Wealth Management from Loughborough University. (Financial Planning Today, 26/9/2024, 'SJP partner firm founder appointed PFS President')
All information provided in this Market Digest has been gathered from Citywire Wealth Manager, Financial Planning Today, Money Marketing and IDEX Consulting.
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