Financial Services News
Artificial Intelligence: opportunity or threat? - Artificial Intelligence presents both significant opportunities and challenges. While it offers immense potential for efficiency and innovation, it also raises concerns about job displacement, ethical implications, and security risks. In the insurance and financial sectors, AI can streamline processes and improve decision-making, but it must be managed carefully to avoid unintended consequences. Balancing these factors will determine how AI impacts industries moving forward. (IDEX Consulting news, 'Artificial Intelligence: opportunity or threat?')
Flexible working bill: what you need to know - The Flexible Working Bill, effective from 2024, enhances employees’ rights to request flexible working from the start of employment. It allows two requests annually, requires quicker employer responses, and removes the need for justification. Employers must still handle requests reasonably but they now face new obligations to discuss alternatives if a request is denied. These changes are significant for businesses aiming to support a healthy work-life balance while maintaining operational efficiency. (IDEX Consulting news, 'Flexible working bill: what you need to know')
2024 FS M&A trends - 2024 has seen strong financial services M&A activity, driven by private equity investments, digital transformation, and regulatory challenges. Trends include heightened interest in fintech and regtech, increased insurance sector deals, and strategic consolidations to boost efficiency and innovation. (IDEX Consulting news, '2024 FS M&A trends')
What does Consumer Duty mean for the Financial Services sector? - Consumer Duty emphasises the need for financial services firms to act in the best interest of their customers, ensuring products and services are suitable, fairly priced, and easily accessible. It introduces regulatory obligations to prevent harm, enhance transparency, and improve customer outcomes. This shift will reshape how firms manage their relationships with clients, making consumer protection a top priority. (IDEX Consulting news, 'What does Consumer Duty mean for the Financial Services sector?')
A survey by NextWealth, commissioned by Schroders Capital, Franklin Templeton, and Aviva Investors, reveals compliance concerns and platform availability hinder UK advisers from investing in private markets, with only 2% of UK-advised assets allocated compared to 15% globally, and 80% of advisers not planning changes. (Selin Bucak, 7/11/2024, Citywire Wealth Manager, 'Advisers reticent about investing in private markets, survey finds')
Industry veteran Ken Davy has warned the CII risks damaging the Financial Planning profession over its dispute with the Personal Finance Society (PFS), suggesting a breakaway PFS could emerge if unresolved. Davy, an honorary CII fellow and founder of SimplyBiz, expressed "increasing sadness" over the conflict, centered on the PFS’s direction and use of funds. (Financial Planning Today, 21/11/2024, 'Industry leader Davy says independent PFS 'possible')
Seven firms, including several Financial Planning companies, achieved Corporate Chartered status with the CII in September and October 2024, recognizing their technical competence and commitment to professional standards. The firms include Augustine Limited, Avoca Wealth Management, Better Financial Planning, Park Insurance, Sedulo Wealth Management, SGM Financial Management, and Suttons Independent Financial Advisors. (Financial Planning Today, 7/11/2024, '7 firms achieve Corporate Chartered status')
Wealth Club has launched a semi-liquid funds platform, offering UK high-net-worth investors access to private equity, credit, and infrastructure strategies from top managers like Apollo and Schroders, with a £10,000 minimum investment. (John Schaffer, 12/11/2024, Citywire Wealth Manager, 'Wealth Club launches first semi-liquid platform for HNW UK investors')
Defined benefit pension transfer values dropped 2% in October to £153,000, their lowest in a year, driven by rising gilt yields amid investor uncertainty over the Chancellor's Budget, according to XPS. (Financial Planning Today, 27/11/2024, 'DB pension transfer values fall following Budget')
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The FCA's upcoming advice guidance proposals aim to clarify the distinction between advice and guidance, providing consumers with better understanding of their pension and investment choices. Speaking at TheCityUK National Conference, COO Emily Shepperd highlighted efforts to offer targeted support, enhance value for savers, and explore investment options with potentially higher returns and adjusted risk profiles. (Financial Planning Today, 27/11/2024, 'FCA advice shake up to focus on pensions')
Complaints to the Financial Ombudsman Service rose over 50% year-on-year to 73,692 between July and September, with personal pensions leading at 1,272 complaints—nearly triple those for stocks and shares ISAs at 489. (Financial Planning Today, 27/11/2024, '50% rise in complaints to Financial Ombudsman'
Financial services are set to lead salary growth in 2025, with pay budgets projected to rise by 5%, outpacing the UK median of 3.5%, driven by competition for talent and demand for expertise in risk, compliance, and technology, according to 3R Strategy's Global Salary Planning Report. (Financial Planning Today, 26/11/2024, 'Financial services to top salary growth table')
A Phoenix Insights report reveals 64% of self-employed workers aged 60-65 have no private pension savings, amid a surge in self-employment among over-50s and the over-60s now being the fastest-growing group of self-employed workers. (Financial Planning Today, 21/11/2024, 'Most self-employed 'Boomers' hold zero pension savings')
The FCA plans to hold round tables with smaller advice firms in early 2025 to discuss introducing cheaper, simplified advice services, aiming to make support more accessible. The regulator seeks to collaborate with firms on testing options for a streamlined, lower-cost advice process. (Financial Planning Today, 18/11/2024, 'FCA to consult small IFA firms over advice shake-up')
A survey by Icit Business Intelligence found 85% of finance professionals use AI-powered Financial Planning tools, with two-thirds saving 50–200 hours annually and companies reporting £50,000–£100,000 in yearly savings. 59% said AI improves decision-making through accurate forecasts and real-time analysis. (Financial Planning Today, 7/11/2024, '4 in 5 finance professionals using AI-enabled software')
Scottish Widows Platform has integrated ATEB Suitability software to streamline suitability report writing for advisers, automating data transfer and reducing manual input. This follows earlier updates, including CURO for bulk valuations and tools like Voyant and EVPro for financial modelling. (Dan Cooper, 27/11/2024, Money Marketing, 'Scottish Widows Platform adds new software to simplify adviser reporting')
Research by NextWealth shows 72% of advisers are ending more client relationships in 2024, with 58% planning increased offboarding in the next year. While 46% feel obligated to clients, many are parting ways with those with simpler needs, like small pension pots or ISAs, to demonstrate fair value. (Lois Vallely, 27/11/2024, Money Marketing, 'Regulation and profitability forcing advisers to offboard clients')
Aviva has launched a new Shariah-compliant lifestyle investment strategy, offering a suite of funds and a de-risking option for workplace pensions, designed to mirror its existing strategies and ensure consistency, while adhering to Islamic principles and automating risk management throughout the pension journey. (Financial Planning Today, 19/11/2024, 'Aviva launches new Shariah investment strategy')
Mergers and Acquisitions
MKC Wealth, backed by Cabot Square Capital, has acquired Warr & Co Independent Financial Advisers and Halstead Independent Financial Management. Warr & Co brings £70m AUA from 140 households, while Halstead adds £90m AUA from 150 households. Co-founder Jeff Crewdson will retire post-handover, with Steve Prosser and team joining MKC's Stockport office. (Financial Planning Today, 25/11/2024, 'MKC Wealth acquires 2 firms in Greater Manchester')
Tavistock has acquired asset manager ABP, adding £3bn in AUM, as it refocuses on providing investment solutions to advice firms and retail clients. ABP, founded in 2017, specialises in outsourced investment for regulated advice businesses. Tavistock will pay £6m upfront, with performance-based payments capped at £18m. (Financial Planning Today, 22/11/2024, 'Tavistock acquires £3bn AUM asset manager ABP')
The Penny Group, the largest firm within the Openwork Partnership, has acquired Surrey-based Whiting Financial, adding £90m in assets under advice. This acquisition brings the group’s total assets to £1.2bn, serving 3,500 clients. Whiting Financial, founded in 1987, will continue to operate from its Farnham office while integrating into The Penny Group over the next year. (Financial Planning Today, 22/11/2024, 'Chartered Planner adds £90m AUM with Surrey acquisition')
Birmingham-based Margetts Wealth Management has completed a management buy-in, with Directors Ian Butler and James Vickers acquiring equal shares in the firm. The duo, both with over two decades at the firm, join existing owner Kevin Smith. The buy-in ensures the firm’s continued independence and manages over £230m of assets for 350 clients, including business owners and professionals. (Financial Planning Today, 21/11/2024, 'Birmingham adviser completes management buy-in')
Succession Wealth, owned by Aviva, has acquired Leeds-based True Wealth Group, adding £1.1bn in assets under advice and marking its third acquisition of 2024. This follows the purchases of DFP Health & Wealth Management and London Wall Partners, collectively bringing £2.2bn in assets.(Financial Planning Today, 18/11/2024, 'Succession Wealth snaps up £1.1bn AUA True Wealth')
Beaufort Wealth Management, a Warwickshire-based IFA firm, has completed a management buyout, with Founders Phil Hart and Ravinder Ghuman buying out Co-Founder Ian Adey, who will remain as a Consultant. Established in 2007, the firm provides financial advice to both retail and corporate clients, covering areas such as investments, pensions, employee benefits, and succession planning. (Financial Planning Today, 18/11/2024, 'Beaufort Wealth Management completes MBO')
Leicester-based WBR Group, specialising in SSASs and tax advice, has acquired SSAS administrator NM Perris & Co Ltd for an undisclosed sum. The deal adds 200 SSAS schemes and £300m of assets under administration, along with a new office in Bristol. The acquisition includes Brunel Trustees and Omniphi Systems, which will continue to operate under their current names. (Financial Planning Today, 13/11/2024, 'WBR acquires Bristol-based SSAS administrator')
Fast-growing wealth manager Advanta Solutions, owner of Chartered Financial Planner Advanta Wealth, has acquired City Financial Planning, adding £800m of assets under management (AUM). With offices in Bath and Exeter, this acquisition marks Advanta's second in 2024 and its ninth overall. CEO Craig Webster highlighted the significance of expanding into Bath and Exeter and praised City Financial Planning's strong client reputation. (Financial Planning Today, 11/11/2024, 'Advanta snaps up £800m AUM south west Planner')
Adviser Services Holdings Ltd (ASHL) has agreed to sell its LYNC Wealth Management arm to an affiliate of 7IM, marking its second sell-off in a week after offloading Rockhold Asset Management to 7IM. ASHL, established in 2020, has built independent and restricted advice networks with over 450 advisers and £9bn of assets under advice. The deal, which involves LYNC’s 60 staff including 28 advisers, is subject to regulatory approval, but the cost has not been disclosed. (Financial Planning Today, 6/11/2024, 'ASHL sells off LYNC Wealth Management')
One Four Nine Group has acquired Nottingham-based Castlegate Capital, boosting assets to over £1.6bn. This marks the first acquisition for its new One Four Nine Wealth brand and the group’s tenth overall. Castlegate, serving private and corporate clients since 2016, will rebrand to One Four Nine Wealth, expanding the group’s presence in the Midlands. (Financial Planning Today, 6/11/2024, 'One Four Nine acquires Chartered Financial Planner')
Brooks Macdonald has acquired Welsh Chartered Financial Planning firm CST Wealth Management for an undisclosed sum, adding £170m in assets under advice and 500 clients, expanding its presence in Wales and supporting growth in Financial Planning. (Financial Planning Today, 5/11/2024, 'Brooks Macdonald snaps up £170m AUM Cardiff Planner')
Perspective Financial Group completed nine acquisitions in October’s second half, adding £1bn in assets under advice, 2,500 households, six new office locations, and 48 staff. The deals expanded the group's national footprint with new offices in Preston, Reading, Rotherham, Teesside, Towcester, and Warwick. The acquired firms include Springfield Financial Services (Preston), Millfield Osceola Financial Consultancy (Reading), Hawley & Wood Ltd (Rotherham), Fortitude Financial Planning (Towcester), Warwick Financial Solutions (Warwick), Edgmoor Financial Planners (Manchester), Keith Mason Wealth Management (Canterbury), a client bank in Teesside, and a self-employed adviser buy-out. (Financial Planning Today, 5/11/2024, 'Perspective adds £1bn AUA with 9 acquisitions')
7IM has acquired £2bn AUM MPS provider Rockhold Asset Management from national adviser firm ASHL. The deal, for an undisclosed sum, enhances 7IM’s investment management capabilities and is described as a "strategic acquisition." ASHL, with 451 advisers, owns several brands including Sense Network, LYNC Wealth Management, Lyncombe, and the Academy. The acquisition is subject to Financial Conduct Authority approval. (Financial Planning Today, 1/11/2024, '7IM acquires MPS provider Rockhold from ASHL')
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Movers
Luna Investment Management has appointed Paul Finnan as a Senior Investment Manager. Previously with Charles Stanley and Brown Shipley, Finnan brings extensive experience managing portfolios for private clients, charities, and family trusts. (Zachariah Sharif, 27/11/2024, Citywire Wealth Manager, 'Ex-Charles Stanley investment manager joins Manchester boutique Luna')
Atomos has appointed Joshua Gennet as Investment Head, succeeding Haig Bathgate, who is joining Callanish Capital. Gennet brings 25 years of experience, including roles at Morgan Stanley, BNP Paribas, MSCI, and co-founding Ethical Capital Opportunity Advisors. Rowan Stone, a key figure in Atomos’s sustainable team, has been promoted to Investment Director to support Gennet. Bathgate, who joined in 2022 from 7IM and led the implementation of the WTW investment process, will depart at year-end after completing a five-year growth plan. (Dylan Lobo, 27/11/2024, Citywire Wealth Manager, 'Exclusive: Atomos names new investment boss as Bathgate joins boutique')
Christopher Morris, Head of Financial Planning Policy at CISI, will join the FPSB Chief Executive's Committee as an at-large representative for a three-year term starting January 1. Andrea Middel, a founding Partner of DURF Financieel Planners and FPSB Board member since 2019, will become FPSB Board Chair on April 1, succeeding Ana Cláudia Akie Utumi. Middel, a past Financial Planner of the Year in the Netherlands, has chaired the FPSB Professional Standards Committee and served on the FFP Board. Caroline Dabu will serve as 2025 Board chairperson-elect, and Emer Kirk will continue as Chairperson of the FPSB European Forum for another two years. (Financial Planning Today, 20/11/2024, 'CISI’s Morris joins global FPSB leadership team')
@sipp has appointed Josh Legg as Business Development Manager to support advisers in the South West with SIPP, SSAS, and commercial property. Legg, with 12 years’ experience, joins from Curtis Banks. Steve Lancaster has been promoted to Chief Operating Officer, overseeing sales, operations, and finance, while Tercia Grindlay steps up as Finance Manager. (Financial Planning Today, 14/11/2024, 'SIPP provider adds SW adviser support specialist')
Perspective has appointed Harriet Griffin as Chief Operating Officer, a new role for the firm. With 16 years’ experience at firms like Kingswood and Charles Stanley, Griffin brings expertise in operations, change management, and technology strategy. A Chartered CISI member with an MBA from Cranfield University, she joins the board alongside CEO Ian Wilkinson, CFO David Hesketh, CRO Julie Hepworth, and Head of M&A Sam Ward. (Financial Planning Today, 11/11/2024, 'Perspective appoints new chief operating officer')
The Association of Member-Directed Pension Schemes (AMPS) has appointed Debbie Seaton of Seabridge SSAS as its new Chair, succeeding Andrew Phipps. Jon Cuin of Barnett Waddingham will serve as Honorary Secretary, while Tasneem Ul-Haq of Aviva remains Treasurer and Joy West of Hartsfield Trustee Services stays as Membership Secretary. (Financial Planning Today, 11/11/2024, 'AMPS appoints Debbie Seaton as chair')
Personal Finance Society interim Chief Executive Don MacIntyre has stepped down after more than two years, having joined in August 2022 to help evolve the PFS's working practices and governance. MacIntyre, who previously served as interim CEO of the UK Cyber Security Council, was unable to secure a permanent CEO, resulting in a 27-month tenure. (Financial Planning Today, 5/11/2024, 'Don MacIntyre steps down as interim PFS CEO')
Quilter Cheviot has appointed Colin Rowe, former Managing Director at 7IM, as Head of Advice, pending regulatory approval. With over 20 years of leadership experience in wealth management, Rowe previously served as Managing Director of private clients at Close Brothers Asset Management. (Financial Planning Today, 4/11/2024, 'Quilter Cheviot poaches new head of advice from 7IM')
Belmayne, the North Derbyshire firm of Chartered Financial Planners, has appointed experienced Financial Planner Nick Pike to its team in Dronfield. With 25 years in the industry, Pike has a background in teaching, accounting, and investment, specialising in clients with complex financial needs, including older individuals who have come into money. He is the third hire at Belmayne in recent months. (Financial Planning Today, 1/11/2024, 'Belmayne adds to adviser team')
Evelyn Partners has appointed Kate Morrissey as Head of Asset Allocation, a newly created role within its central investment team. Morrissey joins from HSBC, where she managed £16bn as head of world selection and global strategy funds over a 23-year career. (Tom Browne, 26/11/2024, Money Marketing, 'Evelyn Partners appoints Kate Morrissey as head of asset allocation')
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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