Ian

The financial planning landscape continues to evolve, with advice platforms playing an increasingly dominant role in wealth management. According to Fundscape’s latest Platforms Report, the top five advice platforms now account for two-thirds of all growth, highlighting a strong concentration of assets among a few key players.

For financial planners, this raises important questions about platform choice, service quality, and the long-term implications of consolidation. This month, we explore what’s driving this shift and what it means for advice firms. We also cover Goldman Sachs’ recent downgrade and BP’s strategic shift back toward oil and gas, both of which could have implications for investment strategies.

Advice Platforms: A Growing Influence on the Advice Market

Strong stock market performance throughout 2024 boosted platform assets to a record £1.1 trillion, with adviser platforms accounting for £697 billion of this total. Fundscape’s data reveals that while the market as a whole has grown, a select few platforms are seeing the biggest gains.

The top five platforms leading the charge are:

• Quilter
• Aviva
• Transact
• Aegon
• Fidelity

In the adviser-only segment, Quilter, Aviva, and Transact led the way, posting record-breaking gross and net sales. These three firms have consistently ranked at the top for three consecutive quarters, reflecting strong demand for professional financial advice and investment solutions.

For financial planners, this dominance raises key considerations:

• Are your clients benefiting from the best platform pricing and service?
• How resilient is your chosen platform to market shifts and technology changes?
• What impact will platform consolidation have on competition and adviser influence?

Why Are the Big Players Dominating?

Several key trends are fueling the consolidation of growth within these major platforms:

1. Multi-Channel Strength

Platforms that operate across advised, direct-to-consumer (D2C), workplace pensions, and institutional markets—such as Aegon, Fidelity, and AJ Bell—are seeing strong inflows across multiple business lines, making them more resilient to client withdrawals and market downturns.

2. Growing Demand for Financial Advice

As clients navigate complex tax and inheritance planning, the value of financial advice has never been clearer. Fundscape’s CEO, Bella Caridade-Ferreira, highlighted that demand for advice is expected to increase, particularly as clients seek guidance on inheritance tax and capital gains tax planning.

3. Regulatory Developments Creating Opportunities

The advice guidance boundary review and targeted support initiatives could bring more consumers into the financial planning ecosystem. Platforms positioned to support both full-service advice and streamlined guidance models may see additional inflows as more clients seek investment solutions.

4. Platform Efficiency & Technology Enhancements

Larger platforms are investing in automation, reporting tools, and user-friendly interfaces, making it easier for planners to manage client portfolios efficiently. However, as firms scale, there’s also a risk that service levels may decline, impacting the client and adviser experience.

Goldman Sachs Downgraded as Dealmaking Slows

For financial planners managing high-net-worth and corporate clients, the investment banking slowdown is worth noting.

Goldman Sachs was recently downgraded from ‘outperform’ to ‘market perform’ by KBW, due to a slower-than-expected start to dealmaking in 2025.

Key takeaways for planners:

• The bank’s valuation surged nearly 50% in 2024, but rising inflation, interest rate uncertainty, and cautious corporate sentiment have stalled mergers and acquisitions activity.
• Goldman’s revised share price target of $660 (down from $690) reflects a more measured outlook on corporate deal flow and investment banking profitability.

BP’s Strategic Shift: Reducing Renewables, Increasing Oil and Gas Investment

Energy remains a crucial consideration for investment portfolios, particularly for planners working with ESG-conscious clients.

BP has announced plans to reduce its renewable energy investment and increase annual spending on oil and gas to $10 billion. This signals a more cautious approach to energy transition investments, reflecting profitability concerns in renewables and a short-term focus on shareholder returns.

Implications for financial planners:

• Clients invested in ESG funds may need portfolio reviews to ensure alignment with their ethical investing goals.
• Oil and gas exposure could present short-term growth opportunities, given the sector’s higher margins and recent demand trends.
• BP’s pivot suggests a more challenging environment for renewables, meaning planners may need to scrutinize clean energy funds and their long-term growth potential.

What This Means for Financial Planners

The increasing dominance of a handful of platforms presents both opportunities and challenges:

✅ More investment options & better pricing – Consolidation means larger platforms can negotiate better fund charges and offer a wider range of investment products.

✅ Enhanced technology & automation – Tools for portfolio reporting, risk analysis, and client engagement are improving, making it easier for advisers to scale their businesses.

⚠️ Risk of platform dependency – If an advice firm relies too heavily on a single provider, it may lose flexibility if pricing, service levels, or product offerings change.

⚠️ Regulatory shifts require careful planning – The evolution of advice regulations could impact how planners engage with clients, making it crucial to stay ahead of compliance updates.

Meanwhile, BP’s shift in energy strategy and Goldman Sachs’ cautious investment banking outlook suggest that sectors previously seen as high-growth (clean energy, investment banking) may face headwinds, while more traditional industries (oil and gas) could benefit in the short term.

Final Thoughts

With platforms consolidating, markets shifting, and sector trends evolving, financial planners play a crucial role in helping clients navigate uncertainty. Whether it’s choosing the right platform, balancing traditional vs. ESG investments, or adapting to changing regulations, the key is to stay informed and proactive.

At We Complement, we’re committed to supporting financial planners with insights, tools, and strategies to help them deliver the best outcomes for clients.

Investment Trends to Watch in 2025: From Yield-Enhancing Structured Products to Private Credit and Music Securitisation

As we move towards the end of February, the investment landscape continues to evolve. Structured products, private credit, and innovative investment opportunities such as music securitisation are gaining traction among private banking clients, institutions, and high-net-worth individuals. These investment options provide stability, diversification, and exposure to unique markets.

However, investors must navigate persistent inflation risks, geopolitical tensions, and the transition to lower-carbon energy sources. These factors are reshaping the global economy, with sectors like mining and energy expected to present long-term growth potential. Meanwhile, ongoing geopolitical conflicts—particularly in Ukraine and the Middle East—and potential shifts under a new U.S. administration add further complexity to investment strategies.

Yield-Enhancing Structured Products: A Top Choice for 2025

Yield-enhancing structured products are set to remain a preferred investment option, especially for private banking clients with lower risk appetites. Popular choices include Fixed Coupon Notes (FCNs) and Equity-Linked Notes, which offer stable returns despite ongoing market volatility.

Notably, structured product volumes in Asia surged throughout 2024, reflecting growing demand for their attractive risk-reward profiles. With interest rates on a downward trend, structured products linked to equities and fixed income will likely stay in demand, particularly those benefiting from a steepening yield curve.

Key Takeaways:

• Structured products offer stable returns and diversification.
• Lower long-term interest rates may reduce the appeal of Minimum Redemption Notes.
• These investments serve as an inflation hedge and portfolio risk management tool.

Private Credit: Stability Amid Uncertainty

Private credit—lending capital to companies or individuals outside traditional banking channels—continues to attract investors seeking predictable returns. Despite falling yields in 2024, private credit maintains a premium over public bonds and remains a strong diversifier in uncertain times.

What Investors Should Consider:

• Manager selection is critical as new entrants increase risk exposure.
• Liquidity concerns are growing as private credit expands into the mainstream.
• Experienced managers with strong underwriting standards are favored in 2025.

Fund selectors say buy ‘hot’ private credit, but avoid newbie managers

Private Equity: High Rewards, High Risks

Unlike private credit, private equity involves acquiring ownership stakes in non-public companies. While private equity investments present substantial growth opportunities, they come with greater risks, including longer investment horizons and liquidity constraints.

• Requires high minimum investments, typically reserved for accredited investors.
• Long-term commitment with potential for significant returns but also higher risk exposure.
• Ideal for investors with a longer-term growth strategy.

Private Credit vs. Private Equity: What’s the Difference?

Music Securitisation: A Niche Yet Promising Investment

Music securitisation, first introduced through David Bowie’s “Bowie Bonds” in 1997, has evolved into a legitimate investment avenue. This strategy allows artists to monetize future royalties while providing investors with steady, passive income.

Why Invest in Music Royalties?

• Offers a consistent income stream backed by future royalty payments.
• Requires no ongoing management (unlike real estate or traditional businesses).
• Streaming platforms (TikTok, Instagram Reels, Spotify) can boost revenue unpredictably.

Key Risk: Revenue from royalties can fluctuate due to shifting music trends and algorithm changes on streaming platforms.

Music Royalty Securitisation: Bowie Bond’s Impact on the Industry

3 Benefits of Investing in Music Royalties That Recently Surged 200%+ in Streaming Revenue

Conclusion: Strategic Investment Choices for 2025

Navigating 2025’s investment landscape requires a diversified approach, balancing traditional instruments like structured products and private credit with innovative alternatives such as music securitisation.

To succeed, investors must:

• Understand the risks associated with each asset class.
• Choose experienced managers with strong track records.
• Diversify portfolios to maintain a balance between stability and growth.

Stay ahead of the trends—subscribe to our newsletter for more insights!

It’s been a busy month in the fintech space! From cutting-edge AI tools to some big regulatory and tech developments that could impact your day-to-day work, here’s what’s been happening and what it means for financial advisers.

AI in Advice: Hype or a Real Game-Changer?

AdvisoryAI has recently launched its second AI assistant, Evie, designed to streamline “the most time-consuming aspects of the financial advisory process.” Evie can update customer relationship management (CRM) systems, eliminating the need for manual data entry, and also automates meeting transcriptions and summaries, making it easier to stay on top of client interactions without the usual admin burden. Read more here.

But let’s be real—while AI has potential, many advisers are still figuring out where it fits. Our recent LinkedIn poll on client meeting notes showed that a huge 42% of advisers still rely on pen and paper, despite the availability of transcription and AI-powered tools. Meanwhile, just 11% record and transcribe meetings every time. This tells us there’s still a gap between the AI solutions being marketed and what advisers are actually comfortable using. So, is AI truly making your life easier, or is it just another layer of complexity? If you’re still sticking to traditional methods, what’s stopping you from embracing AI-driven solutions?

DeepSeek: The AI Model That’s Raising Eyebrows

A new AI model called DeepSeek has been making waves in the AI space. Developed by a Chinese research team, DeepSeek is an open-source large language model (LLM) designed to rival ChatGPT. While both models generate human-like responses, DeepSeek was developed in record time and at a fraction of the cost, raising concerns about the quality of its training data and security risks. For financial advisers, the key takeaway is that not all AI models are created equal. While ChatGPT has undergone rigorous testing and compliance reviews, DeepSeek’s rapid release raises questions about data security, reliability, and ethical considerations. If you’re considering integrating AI into your practice, make sure any tool you use meets compliance requirements, safeguards client data, and aligns with FCA guidelines. The last thing you want is to rely on an AI that hasn’t been stress-tested for accuracy in financial planning. Read more here.

Letters of Authority: Why Are Providers Making Life Harder?

In a move that’s frustrating many in the industry, some providers are refusing to speak with adviser admin staff—even when they have a signed Letter of Authority (LoA). This is making it harder to get client requests processed efficiently. For many firms, admin staff are the backbone of smooth client service, and this kind of red tape only slows things down.

The issue isn’t new, but it seems to be getting worse. Some providers claim security concerns or regulatory requirements prevent them from engaging with non-advisers, while others simply don’t have the internal processes to handle LoAs efficiently. This leads to delays in transferring client information, increased workloads for advisers, and unnecessary frustration for both firms and clients.

Recognising these challenges, The Pension Lab has launched the Fix LoA Action Group (FLAG), a collaborative initiative aimed at overhauling the LoA process. FLAG seeks to bring together industry stakeholders—including providers, advisers, paraplanners, and others—to streamline and improve the LoA process. The goal is to make LoA processing as simple and transparent as Open Banking.

Paraplanners, advisers, and admin teams—how is your firm handling these roadblocks? Have you found any workarounds, or are you simply forced to wait? Let’s keep this conversation going and push for real change. Read more here

The UK’s Potential Leadership in Asset Tokenisation

The UK is in a strong position to lead the global market in asset tokenisation, a revolutionary use of blockchain technology to digitise ownership of traditional assets. Tokenisation allows for fractional ownership of everything from property to fine art, opening new investment opportunities. However, while the U.S. has been focusing heavily on cryptocurrency, the UK has the opportunity to dominate the tokenisation space, offering a more accessible and secure market for investors.

Yet, there’s a significant lag in the UK’s regulatory framework for digital securities. Industry experts argue that stronger government leadership and clear regulatory guidance are needed to ensure the UK doesn’t fall behind other global financial hubs like Singapore or Luxembourg. Asset tokenisation could reshape capital markets, increase liquidity, and provide new opportunities for both advisers and clients.

If you’re advising clients on alternative investments or looking to diversify portfolios, this emerging trend could be a key area to watch. Read more here.

Final Thoughts

The takeaway this month? AI adoption in advice is happening, but advisers are still hesitant about fully integrating it. The LoA process continues to cause frustration, but efforts are underway to make it smoother. The UK’s potential in asset tokenisation could be a game-changer for advisers looking to offer new investment opportunities.

At We Complement, we’re here to help advisers navigate the evolving tech landscape with solutions designed to improve productivity, simplify compliance, and provide valuable support to both clients and teams. Whether it’s helping you get the most out of AI tools, streamlining admin, or staying on top of regulatory changes, we’re here to make tech work for you.

Until next time,

Amy North

Welcome to Regulation Round Up! This monthly briefing is your go-to resource for the latest regulatory updates in financial services. Each edition, we highlight key developments from HMRC, the FCA, and beyond—helping you navigate the evolving landscape with confidence and stay ahead of industry changes.

FCA Sets Out Proposals to Open Up the Bond Market

The FCA is currently consulting on plans to reduce costs and lower barriers for companies seeking to raise capital by issuing bonds. According to the FCA, “the aim is to encourage companies listed on stock exchanges to offer bonds in smaller sizes, thereby improving investment opportunities for wealth managers and retail investors. More flexible and affordable capital raising should support the growth of UK listed companies.”

The proposals are designed to enable companies to offer larger quantities of shares or bonds to a broad investor base outside of public markets through an authorised firm—much like the approach taken by crowdfunding platforms.

Read more on the FCA’s website

Treasury Committee Begins New Inquiry into the Use of AI in Financial Services

The Treasury Committee has opened a call for evidence regarding the use of artificial intelligence in banking, pensions, and other financial services. The inquiry aims to understand how AI can be utilised for innovation while ensuring robust consumer protection.

Key areas of focus include:

• How AI is currently being used in financial services.
• Opportunities for innovation and its impact on employment.
• Comparative analysis of the UK’s approach versus international methods.
• Consumer risks, especially for vulnerable groups, and the potential effects on financial stability and cyber security.

Find out more about the inquiry

Reminder: Deadlines for Lifetime Allowance Protections and Enhancements

Pensions Scheme Newsletter 166 (issued at the end of January) reminds us of the upcoming deadlines for lifetime allowance protections and enhancements. Please ensure that any clients affected by these changes submit their applications before the deadlines:

• Fixed Protection 2016 and Individual Protection 2016: Deadline: 5 April 2025
• International Enhancements for Overseas Individuals: Overseas individuals with accrual under a registered pension scheme, or transfers from a recognised overseas pension scheme, who wish to apply for international enhancements must do so by the earlier of the following: either the 31st of January following the end of the tax year, five years after the end of the tax year in which the accrual period ends or in which the recognised overseas scheme transfer took place, or the 5th of April 2025.
• Pension Credit Enhancements from Previously Crystallised Rights:Apply by the earliest of the following: Either the 31st of January following the end of the tax year, 5 years after the end of the tax year in which they legally became entitled to the pension credit, or the 5th of April 2025.

Read the full details on the GOV.UK website

Recent FOS Decisions

This month, we take the opportunity to review some recent decisions by the Financial Ombudsman Service (FOS). These decisions are invaluable for financial planners and paraplanners alike, offering insight into the considerations and rationale behind complaint resolutions.

FOS decisions can be really valuable reading for anyone who works in the financial planning world, and we recommend that all paraplanners, in particular, take a look at some recent decisions from time to time. You might find some of the decisions and the rationale given to be surprising. Regardless of whether you agree with the decisions made by the FOS, looking through their decisions gives a really interesting insight into the sort of things they look at when investigating a complaint. We’ve found this to be invaluable when writing suitability reports, and it helps you think critically about the processes and procedures that are in place where you work, and how they would be perceived by an external person.

DRN-5161884

This decision concerns a client’s complaint about the service received from his financial adviser, specifically challenging the perceived disproportionate charges relative to the level of service provided. The complaint was not upheld. The ombudsman’s rationale highlights the importance of something we mention often: evidencing the suitability of your advice. Without the adviser’s good record keeping, the outcome could have been different.

In a nutshell, the client said that he had incurred significant charges since the adviser has been managing his pension, and over that time there had been no fund switches made. He felt that the reviews were “tick box exercises” and he was not happy that his pension hadn’t achieved the same performance as the FTSE All Share Index.

As evidenced by the client file, the adviser had offered to re-assess the client’s risk profile on two occasions, had discussed the option of other investments, and had proposed discretionary management to the client to provide the level of active management he was seeking. The client declined these options.

Keeping your files well-organised, including maintaining records of conversations with clients, is key to making sure that you understand your client’s thoughts and needs, and adds an extra layer of protection for you. If you need help with making sure you have the right processes in place, get in touch.

Strengthen Your Practice with Robust Record-Keeping

Don’t let disorganised files and incomplete records jeopardise your professional standing. Maintaining comprehensive, up-to-date documentation is essential—not only for regulatory compliance but also for building trust and clarity with your clients. If you’re looking to refine your processes or need expert guidance on best practices, we’re here to help.

Get in Touch:

• Schedule a Free Consultation: Let’s discuss how to optimise your record-keeping and compliance processes.
• Tailored Support: Receive personalised advice to ensure your documentation practices meet the highest industry standards.
• Secure Your Future: Proactively safeguard your practice and enhance your client relationships by working with our experienced team.

Contact us today to find out how we can help you streamline your operations and protect your business.

Welcome to this month’s edition of Specialised Investments Simplified, designed to provide financial advisers with the latest insights and actionable updates on key investment topics. This edition covers developments in inheritance tax (IHT), Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS), emerging markets, and the strategic role of gold for 2025.

IHT Receipts Soar to £6.3 Billion – A Record Year Ahead

With IHT receipts hitting £6.3 billion, the Treasury is set for a record-breaking year. The frozen nil-rate band and rising property values continue to leave clients exposed to increasing IHT liabilities. Additionally, the industry warns that IHT on pensions could create “significant problems” for clients who have relied on these assets as part of their estate planning strategy. Now, more than ever, robust estate planning advice is essential to help clients mitigate their exposure.

Explore the IHT trends further here.

VCTs: Beyond Size and Age

As Venture Capital Trusts celebrate their 30th anniversary, their relevance remains strong. While the size and age of a VCT often influence client confidence, advisers should note that success increasingly depends on the expertise of the management team, the quality of deal flow, and portfolio diversification. With tax-efficient opportunities still in demand, VCTs offer a compelling solution for clients seeking growth-focused investments.

Learn more about what makes VCTs successful.

Review 30 years of VCT progress.

Is EIS the Right Fit for Your Clients in 2025?

Enterprise Investment Schemes (EIS) continue to provide tax-efficient growth opportunities, particularly for clients willing to embrace higher-risk investments. With Income Tax relief, CGT deferral, and potential Inheritance Tax benefits, EIS may present a timely solution for clients seeking diversification while optimizing their tax position.

Read why EIS could be a strong addition to client portfolios.

Navigating Emerging Market Volatility Driven by US Policy

Global Emerging Markets (GEMS) remain under pressure due to U.S. policy-driven volatility. Shifts in monetary policy, geopolitical tensions, and trade dynamics are creating challenges—but also opportunities. Advisers should carefully evaluate how these trends could impact client portfolios and whether exposure to GEMS remains aligned with their risk appetite.

Dive deeper into the implications of US-driven volatility on GEMS.

Gold in 2025: A Strategic Anchor for Portfolios

Gold remains a strategic asset in uncertain times, offering diversification and a hedge against volatility. The World Gold Council’s 2025 outlook emphasizes gold’s continued relevance for client portfolios, particularly given macroeconomic uncertainty and shifting market dynamics. For advisers, gold can provide an effective way to mitigate risk while enhancing portfolio resilience.

Explore the latest research on gold’s role in 2025 portfolios.

Supporting Your Clients in 2025

The evolving investment landscape presents both challenges and opportunities. As advisers, ensuring clients are informed and well-positioned to navigate these developments will be key to delivering value. Whether it’s addressing IHT exposure, exploring VCTs or EIS, or rebalancing portfolios with gold and emerging markets, staying proactive will set you apart.

We’d love to hear your thoughts or questions—join the conversation on our LinkedIn page.

How Can We Complement?

Welcome to the January edition of Tech Talk. In this issue, we focus on how AI is transforming the financial services industry. AI-driven tools are making remarkable progress in streamlining operations, improving compliance, and enhancing customer experience. From meeting transcription to personalised suitability reports, these tools are enabling businesses to operate more efficiently, reduce costs, and deliver better outcomes for their clients.

AI Tools Revolutionising Financial Services

The integration of AI into financial services is unlocking new levels of efficiency and accuracy. Key players such as Fireflies.ai, Saturn, Aveni, Timeline, and Avenir are at the forefront, automating tasks, enhancing compliance, and enabling professionals to focus on high-value activities. Like many businesses, we’re in the early stages of conducting our own in-house research and would like to share an overview of some of the most impactful AI tools currently available:

Fireflies.ai: Streamlining Meeting Transcriptions and Analysis

Fireflies.ai automates the transcription and analysis of meetings, saving valuable time and ensuring accurate documentation. It supports platforms like Zoom, Google Meet, and Microsoft Teams, generating summaries, capturing action items, and enhancing team collaboration.

Key Features:

• Automated transcriptions with multilingual support
• AI-generated summaries highlighting key decisions and tasks
• Task tracking integration with tools like Slack
• A searchable database for easy retrieval of meeting notes
• Analytics on meeting participation and talk time

There’s a free 7-day Business Plan trial available, but we’ve been using their free forever subscription over the past week and can confirm it’s very user-friendly. Give it a try here: Fireflies.ai

Saturn: A Customisable Platform for Financial Advisers

Saturn is a powerful platform designed to enhance the efficiency of financial Advisers, paraplanners, and compliance teams. It automates routine tasks, manages data, and ensures compliance, allowing professionals to focus more on client-facing activities.

Key Features:

• Client management, data capture, and reporting
• Compliance and risk management tools
• Workflow automation to improve client service
• High security standards to protect sensitive information

Find out more at: Saturn

Aveni: AI-Driven Automation for Administrative Tasks

Aveni specialises in automating administrative tasks in financial services. By leveraging voice AI, the platform enhances customer service, ensures compliance, and boosts overall productivity by automating client-related activities such as onboarding and document processing.

Key Features:

• Automates tasks like client onboarding and document management
• Voice AI to improve customer interactions
• Ensures regulatory compliance
• Provides performance coaching and quality assurance

Pricing: For a customised quote, please reach out directly to Aveni.

Avenir: Personalised Suitability Reports in Minutes

Avenir simplifies the process of generating personalised suitability reports. Designed for financial advisers, the tool integrates seamlessly with client records to create reports in under 25 minutes, saving time and ensuring accuracy.

Key Features:

• Rapid generation of suitability reports
• Customisable templates for tailored reports
• Secure data processing and integration with client records

Pricing:

• Standard Plan: Unlimited reports with Avenir’s templates (currently 3 available, with 2 more in the pipeline)
• Premium Plan: Custom templates for your firm’s specific needs

The Importance of AI in Financial Services

AI is rapidly becoming a cornerstone of operational efficiency in the financial services sector. These technologies provide several key benefits:

• Improved Efficiency: Automating repetitive tasks allows financial professionals to focus on higher-value activities like client engagement and strategic planning.
• Enhanced Accuracy: AI ensures precise documentation, reducing the risk of human error.
• Compliance and Risk Management: AI tools help businesses stay ahead of evolving regulatory requirements, reducing the likelihood of compliance issues.
• Better Client Experience: Automation frees up professionals’ time, enabling them to deliver superior service to clients.

As AI continues to evolve, its impact on financial services will only expand. Firms embracing these technologies are well-positioned to improve operations, reduce costs, and deliver greater value to their clients.

We hope this edition of Tech Talk has provided valuable insights into the AI tools shaping the future of financial services. We will continue testing these systems over the coming months to assess which ones are truly worth the investment, and we’ll be sure to keep you updated on our findings.

Welcome to our monthly newsletter, Regulation Round Up. Each month, we’ll bring you key insights and timely updates on financial services regulations to help you stay informed and ahead of industry changes. Each month, we will cover key stories from HMRC and the FCA, along with other updates related to financial services rules and regulations.

FCA Advice Guidance Boundary Review

The FCA has released an update on its Advice Guidance Boundary Review, highlighting upcoming consultations that aim to make financial advice more accessible and affordable for consumers. For context, in late 2023, the FCA published policy paper DP23/5, “Advice Guidance Boundary Review – Proposals for Closing the Advice Gap”. This paper included three proposals to address the advice gap:

• Targeted support

• Simplified advice

• Further clarification of the advice boundary

The review aims to ensure people have access to timely and affordable assistance when making important financial decisions to maximize their resources.

As of December 2024, the FCA has moved on to its first consultation, focusing on pensions. This consultation will explore how targeted support might work, including research into consumer interest. By mid-2025, the FCA plans to develop targeted support proposals and consult on draft rules that will apply to consumer investment and pensions.

Read more here:

• Feedback on the Advice Guidance Boundary Review

• Discussion Paper DP23/5

FCA Seeks Further Views on Enforcement Transparency Proposals

The FCA has published the second phase of its consultation on increasing transparency in enforcement investigations and has outlined plans for further engagement following concerns raised in the original consultation.

New data from the regulator shows an accelerating pace of investigations, with some completing within 16 months. By providing data, case studies, and details on the public interest test, the FCA aims to clarify how decisions on announcing investigations might be made if the proposed changes proceed.

Read more here:

• FCA Seeks Further Views on Enforcement Transparency

• Consultation Paper CP24/2 (Part 2)

Government’s Pension Review Suspended

Reports indicate that the government’s retirement adequacy review has been postponed due to concerns about its impact on employers, particularly around potential increases in administrative burdens and contribution costs tied to proposed changes in auto-enrolment. especially after the recent budget. Key areas expected to be addressed in the review included:

• Lowering the minimum auto-enrolment age from 22 to 18

• Removing the £6,240 annual salary threshold so pension contributions apply from the first pound earned

• Increasing minimum contributions from 8% to 12% of earnings

Read more here:

• Government Suspension of Pension Review

• Industry Reactions to the Postponement

Pension Schemes Newsletter 165

HMRC has published Pension Schemes Newsletter 165, an important update for pension administrators and financial professionals. It provides guidance on recent changes to lump sum payment rules and offers clarity on regulatory requirements following the LTA abolition. Key highlights include:

• Some members are asking how they can return pension commencement lump sums (PCLS) or uncrystallised funds pension lump sums (UFPLS) taken due to speculation about potential pension changes in the 2024 Autumn Budget. The newsletter confirms that tax-free lump sum payments cannot be undone, and lump sum allowances will not be restored.

• Regulation 17(5)(2) clarifies that when a TTFAC is issued or cancelled, members must send a copy of the certificate to other schemes they belong to within 90 days or before any relevant benefit crystallisation event (RBCE). The 90-day period began on November 18, 2024, when the regulations came into force.

Read more here:

• Pension Schemes Newsletter 165

As a financial adviser, keeping up with regulatory changes is key to delivering the best advice to your clients. At We Complement, we’re here to help you navigate these shifts with confidence.

Get in touch today to see how we can support your practice and help you adapt to the latest developments in the industry.