Ian

Helping you stay one step ahead, with practical insights for paraplanners and advisers.

🤖 FCA to Launch Live AI Testing Service

The FCA has announced plans to launch a live AI testing service this September. The idea? To give firms a safe space to trial consumer- or market-facing AI tools, working alongside the regulator. If you’re considering using AI to enhance your advice process (think onboarding, risk profiling, or document automation), this could be a golden opportunity.

The service will run for 12 to 18 months and form part of the FCA’s wider tech-positive strategy. The FCA says it’s committed to supporting innovation while protecting consumers – and this live testing approach aims to help firms deploy AI responsibly, without fear of crossing regulatory lines.

Engagement Paper: Proposal for AI Live Testing

💡 Practical tip:If your firm is exploring AI tools, start by mapping out your use case. Is it aimed at improving client understanding? Speeding up suitability letter writing? Think about risks – bias, explainability, data protection – and how you’d address them. Even if you’re not planning to test with the FCA, being ‘AI-ready’ is likely to become a regulatory advantage.

🌍 Crypto & Digital Assets – Regulation Is Catching Up

The Government is moving closer to finalising legislation to regulate crypto assets – with licensing and registration of crypto firms on the horizon. The FCA has already taken down 900+ scam sites and issued 1,700 consumer alerts.

The new regime is expected to bring greater clarity and accountability. Key changes include:

• Firms must be registered with the FCA

• Enhanced enforcement powers

• Stronger investor protection mechanisms

Crypto ownership in the UK is now at 12% of adults, and the FCA is keen to protect this growing user base.

New cryptoasset rules to drive growth and protect consumers

💡 Practical tip for advisers: If your clients are asking about crypto, consider including it in your advice scope documentation. Outline where you do (or don’t) offer guidance – especially around scams and red flags. It can help manage expectations and demonstrate Consumer Duty compliance.

♻️ SDR Delay for Portfolio Managers

The FCA has decidednotto proceed (for now) with plans to extend Sustainability Disclosure Requirements (SDR) to portfolio managers. The feedback was broadly supportive, but the regulator says “now isn’t the right time.”

Instead, attention will turn to its upcoming review of Model Portfolio Services (MPS) – specifically looking at how firms are applying the Consumer Duty in practice.

FCA publishes update on extending the UK SDRs to portfolio managers

💡 Practical tip: Paraplanners can help ensure your investment proposition stands up to scrutiny by stress-testing model portfolios against client needs, preferences, and objectives. Keep an eye on cost/value assessments and be ready to evidence suitability.

📈 AI, Innovation & Becoming a Smarter Regulator

In a recent speech, the FCA’s Jessica Rusu explained how the regulator is embracing tech – not just to supervise better, but to reduce regulatory burdensfor firms. Think streamlined authorisation forms, fewer legacy data returns, and even a machine-readable Handbook.

The message is clear: innovation isn’t just allowed – it’s encouraged, provided it benefits consumers.

AI for growth – how the FCA can help

💡Practical tip:Innovation doesn’t always mean big budgets or bots. Small wins – like automating client communications or streamlining file reviews – can make a big impact. paraplanners and operations staff often spot these opportunities first.

What does all this mean for you?

We know it can feel like there’s a lot of change, but much of it is about enabling better advice, more efficient firms, and safer outcomes for clients. Whether you’re a paraplanner diving into tech tools or an adviser preparing for crypto conversations, this month’s updates offer useful prompts to reflect, review, and maybe even rethink.

At We Complement, we’re here to help you stay ahead – with clarity, confidence, and compliance.

📩 Want to talk about how these updates affect your CIP, CRP, or advice process? Let’s chat.hello@wecomplement.co.uk

As spring unfolds, so does a fresh wave of opportunities and challenges across the investment landscape. For advisers and paraplanners, this month presents an important moment to reassess the terrain—particularly around green investments, renewable infrastructure trusts, and the growing momentum behind responsible investing.

This edition of Investment Matters brings together the latest insights and, as always, focuses on what this actually means for you and your clients. Our goal is to help you translate big market themes into real, practical planning conversations.

🌍 Green Momentum: UK Takes Centre Stage on Sustainable Investment

The UK government is doubling down on its ambition to become a global hub for green investment. With a £300 million fund earmarked for offshore wind development and a high-profile 60-country energy summit hosted in London this month, the message is clear: Britain wants to lead the clean energy race.

This comes at a time when many investors—especially those with ESG values—are feeling unsettled by policy instability elsewhere, particularly in the U.S. The UK’s consistency on climate goals provides a more stable backdrop for long-term, sustainability-focused investment strategies.

What this means for advisers:

• If you have clients who are ESG-minded but feeling unsure about where to invest, now’s a great time to refocus on the UK’s credibility and commitment to long-term green growth.
• Use this momentum to refresh your sustainable investment toolkit. Is your CIP or CRP reflecting the latest in environmental impact strategies?

💬 And a quick shoutout to our friends at Etcho, they’re doing brilliant work helping people understand the environmental impact of their investments. If you haven’t already, check out their platform for fresh inspiration on how to engage clients with their values in mind. Tools like this can be incredibly powerful in bringing ESG conversations to life.

Etcho for IFAs – Differentiate and grow your business through a values-based approach to advising

💡 Tip: Why not create a simple “Green Outlook” briefing for your clients? A short note or visual update on the UK’s renewable direction—and how your investment solutions support that journey—can be a great conversation starter.

💸 Renewable Energy Investment Trusts – Value Beneath the Surface?

Renewable energy investment trusts (REITs) are back in the spotlight—and not for the reasons you might think. After a challenging 2024, the sector has seen trusts trading at historically deep discounts, even as dividend yields hit 7–9%+.

For example:

• Greencoat UK Wind is currently yielding 8.9%, with a 24.6% discount to NAV.
• Triple Point Energy Transition offers an 8.7% yield, with a 36.2% discount.

So, what’s going on? Higher interest rates and a pivot back to gilts and other government bonds have drawn capital away from infrastructure. But with the prospect of rate cuts later this year, and with UK clean power targets getting more ambitious, we could see momentum shift back towards these trusts.

What this means for advisers:

• These REITs may represent a compelling income play, especially for decumulation portfolios where clients are looking for inflation-linked returns.
• Use this as a chance to educate clients on why market sentiment and underlying value can diverge, and how volatility can sometimes open doors, not just create risk.

Is it worth buying shares in Greencoat UK Wind?

💡 Tip: Consider spotlighting one or two renewable trusts in your next client newsletter or review meeting—especially if they hold a strong ESG or income objective.

📈 Responsible Investment: EdenTree’s Thoughtful Approach

EdenTree Investment Management has just released its latest Responsible Investment Activity Review, highlighting an active year of engagement on issues such as climate change, human rights in AI, and labour standards.

The firm also secured the “Sustainability Impact” label for three of its funds and re-affirmed its commitment to the UK Stewardship Code.

For advisers, this is a welcome reminder that ESG is more than just a marketing label—done well, it’s a rigorous, evidence-based approach that adds value for clients who want their money to do more than just grow.

What this means for advisers:

• Use EdenTree’s report (or similar updates from fund partners) as talking points in reviews with ethically-minded clients.
• If you’re building or reviewing a sustainable model portfolio, updates like this can provide credible examples of fund managers walking the talk.

💡 Tip: Invite a fund house rep to your next team CPD session to talk about their ESG process. It’s a great way to stay current, and makes for a stronger story when you explain fund choices to clients.

🏡 A Simpler Future for the Lifetime ISA?

Also in the headlines this month is a renewed call to make the Lifetime ISA (LISA) a pure first-home savings vehicle. Currently, LISAs can also be used for retirement planning, but there’s increasing support for simplifying their purpose and focusing solely on helping young savers get onto the property ladder.

While no changes have been confirmed yet, the proposal has implications for younger clients—especially those weighing up LISAs versus pensions or general ISAs.

What this means for advisers:

• Now is the time to review any LISA-linked advice or suitability documentation, especially for clients under 40.
• Use this debate as a prompt for younger clients to get proactive about planning—not just saving—and remind them that tax wrappers should support wider goals, not drive them.

💡 Tip: Create a quick LISA explainer video or blog post for your website/socials. It’s a great way to capture attention from first-time buyers and new leads.

💬 Final Thoughts – Turning Insight into Action

This month’s developments show how interconnected the advice world has become. Shifts in global policy, sector sentiment, and investor expectations all feed into the choices you make when building client plans.

At We Complement, we know that turning these market insights into practical, usable outcomes isn’t always easy. That’s why we work closely with firms to help shape Centralised Investment Propositions (CIP) and Centralised Retirement Propositions (CRP) that are not only robust, but flexible enough to adapt as client needs—and markets—evolve.

If you’d like to explore how we can support your team in building or refining your CIP or CRP, pop Amy North a DM, we’d love to chat.

Until next time, thanks for reading—and keep up the great work.