Ian, Author at Wecomplement

Welcome to this month’s edition of Specialised Investments Simplified, where we break down key trends and developments shaping the investment landscape. This month, we’re focusing on practical IHT planning advice post-Budget and key updates in sustainable finance—helping you, as financial advisers, better guide your clients through these changes.

Post-Budget IHT Planning: Practical Advice for Advisers

With potential IHT changes on the horizon from April 2027, pensions may no longer be the default ‘tax-efficient’ wealth transfer vehicle they once were. So, what should advisers be doing now?

🔹 Encourage clients to act early– If pensions become liable for IHT, withdrawals may need to start sooner than planned. However, this only works if the funds are then used efficiently.

🔹 Plan for the ‘spend, shelter, or gift’ rule– Whether clients are using trusts, gifting allowances, or spending their wealth, every action needs to be deliberate.

🔹 Utilise trust solutions– Loan trusts, discounted gift trusts, and gift trusts could be useful, depending on client needs. Investment bonds within trusts may also provide tax-efficient benefits.

🔹 Maximise annual gifting allowances– £3,000 per year (or £6,000 if unused from the prior year) can be gifted tax-free, plus small gifts of £250 to multiple individuals. Contributions to ISAs or pensions for family members could also be a smart move.

🔹 Document ‘gifts out of normal expenditure’– This is an often-overlooked exemption that, if used correctly, allows gifts to be immediately outside of an estate. However, meticulous record-keeping is essential.

📖 Read the full analysis

IHT Reform: What Advisers Need to Know About Agricultural & Business Property Relief

The government’s consultation on Agricultural and Business Property Relief (APR/BPR) is creating complexity for estate planning. While the £1m allowance for 100% reliefis helpful, new rules around trusts and transfers add significant challenges.

💡 Key adviser takeaways:

✅ Interest-free instalment optionsfor IHT payments could ease cashflow issues for beneficiaries inheriting qualifying assets.

❌ Trust taxation is getting more complicated– expect increased compliance and administrative burdens.

❌ Spousal transfers aren’t permitted, meaning business owners and farmers may need to restructure to avoid forced sales after the first death.

🚨 Next steps:Clients holding significant APR/BPR-eligible assets should review their estate plans now, particularly if they use trust structures. More legislative clarity is expected in the coming months, but early planning is key.

📖 Read the full analysis:

Sustainability in 2025: Practical Guidance for Advisers

Sustainable investing is evolving rapidly, and advisers need to stay ahead of both regulatory shifts and client expectations.

🌱 Greenwashing remains a major risk – Nearly 25% of Article 8 funds still fail to meet green criteria. Ensuring clients’ ESG investments align with their actual sustainability preferences is more important than ever. 📜 New SDR rules – The Sustainability Disclosure Regulation (SDR) framework is evolving, requiring advisers to provide more transparent, credible recommendations. 💰 Fidelity adopts SDR ‘Sustainability Mixed Goals’ labels – A sign that transparency in sustainable investing is becoming a priority for fund managers.

At We Complement, we use @Etcho, a powerful tool designed to help advisers bring sustainability into client conversations in a meaningful way.

Etcho provides:

✅ Clear ESG insights – Helping advisers align investment strategies with client values.

✅ Interactive sustainability tools – Making complex ESG factors easier to communicate.

✅ A streamlined approach to responsible investing – Giving advisers confidence in their recommendations.

🔗 Essential reads: Greenwashing Risks Sustainability in 2025 SDR Regulations Fidelity’s Sustainability Labels

The investment and tax landscape is shifting, and proactive planning is crucial. Whether it’s navigating potential IHT reforms or adapting to sustainable investment regulations, advisers need to stay ahead to provide the best outcomes for clients.

At We Complement, we understand the challenges you face. Our expertise and support services are designed to help you stay on top of regulatory changes, streamline your advice process, and ultimately, deliver better client outcomes. If you’d like to explore how we can complement your business, we’d love to chat.

📩 Get in touch today to see how we can support you.

Until next time,

Lucy

🔍 AI & Cybersecurity: What Advisers Need to Know

This month, I’ve focused on two big topics that are shaping financial advice right now—cybersecurity threats and AI developments. Both are moving fast, and staying ahead is key.

🛡 Cyber Threats & Client Data—Are Advisers Doing Enough?

Cybercriminals are getting smarter, and financial services firms are a prime target. Keeping client data safe isn’t just about ticking compliance boxes—it’s about protecting your reputation and trust.

The biggest risks right now:

Phishing & social engineering – Scammers are more convincing than ever. Are you and your team prepared?
Weak security protocols – Still relying on outdated systems? You could be leaving your firm exposed.
Regulatory penalties – A single data breach could land you in hot water with the FCA.

Simple ways to tighten security: ✅ Use Multi-Factor Authentication (MFA) – A quick win to reduce the risk of unauthorised access. ✅ Secure document sharing – Ditch email attachments and switch to encrypted client portals. ✅ Regular staff training – People are the weakest link (and your strongest defence). Keep them informed!

📖 Further reading:

🤖 AI Updates—What Actually Matters for Financial Advice?

AI is transforming financial advice, but with all the hype, it can be hard to know what’s actually useful and what’s just noise.

Here’s what’s worth paying attention to:

AI adoption is accelerating – More firms are integrating AI into their processes, streamlining workflows and improving client interactions.
Regulators are watching – The FCA is keeping a close eye on AI to make sure it’s used responsibly.
Potential risks—data security & bias – AI is only as good as the data it’s trained on. What safeguards are in place to ensure fair outcomes?

Key questions advisers should be asking: 💡 How does AI handle sensitive client data? 💡 Are AI-generated recommendations free from bias? 💡 What are the FCA’s compliance expectations?

📖 Further reading:

📜 FCA’s Focus on AI & Consumer Duty

The FCA is stepping up scrutiny on AI in financial services, making it clear that firms must prioritise client protection, transparency, and fairness.

The key concerns: 🔹 Data security – AI tools must protect client information and prevent data breaches. [Read more] 🔹 Transparency – Clients should understand AI-driven decisions, not just accept them blindly. [Read more] 🔹 Bias & discrimination – AI should help advisers serve all clients fairly, not reinforce hidden biases. [Read more]

What this means for advisers: ✔ Review your AI tools – Are they compliant with Consumer Duty standards? ✔ Monitor AI-generated advice – Ensure recommendations are accurate and in clients’ best interests. ✔ Stay informed – AI regulations are evolving. Keep up-to-date to avoid compliance headaches.

📖 Further reading:

Cyber threats and AI are reshaping financial advice—are you prepared? By taking proactive steps now, you can protect your clients, improve efficiency, and stay ahead of the curve.

At We Complement, we’re here to help advisers integrate technology in a way that’s safe, efficient, and compliant. If you’re exploring how AI or digital tools could improve your practice, let’s chat!

We’d love to hear your thoughts on these developments—drop a comment or message us!

Welcome to the March edition of Regulation Round Up, your monthly briefing on the latest regulatory developments in financial services. This month, we bring you three key updates from the Financial Conduct Authority (FCA) that are especially relevant for financial planners:

FCA to Launch Multi-Firm Review of Model Portfolio Services

The FCA has announced plans to launch a multi-firm review of model portfolio services (MPS) later this year to assess how firms are implementing the Consumer Duty. With MPS growing “at pace” in recent years, the regulator is keen to ensure that investors receive good outcomes and that best practice is shared across the industry. In a recent letter, Camille Blackburn, Director, Wholesale Buy-Side at the FCA, stated:

“Though MPS sit outside traditional fund wrappers, these portfolios generally invest in investment funds and asset managers are active in constructing and distributing these services.” Alongside the review, the FCA will engage with firms affected by key policy proposals aimed at making its disclosure regime more flexible. Notably, the Advice-Guidance Boundary Review seeks to help consumers obtain the support they need to make informed financial decisions, while the Consumer Composite Investments consultation is designed to transform product disclosures to better prioritise consumer outcomes.

FCA Review of Ongoing Advice Services

The FCA’s review found that while ongoing suitability reviews were delivered in 83% of cases, 15% of clients either declined or did not respond, and in fewer than 2% of cases, no attempt was made to deliver the review. These findings underscore the importance of robust systems and processes to ensure every client receives the service they’re paying for. Here are some practical ways to help your firm meet all contractual obligations:

Clear Client Contracts:Ensure that client agreements clearly outline what ongoing services will be delivered, including the frequency and scope of suitability reviews. Clear contracts help manage expectations and provide a solid reference if issues arise.

Automated Scheduling and Reminders:Invest in a reliable back office system that automatically schedules reviews and sends reminders to both advisers and clients. Automated alerts can help ensure that no review is inadvertently missed.

Robust Record-Keeping:Maintain comprehensive records of all communications and reviews. Digital record-keeping systems facilitate easy retrieval of documentation, which is crucial for demonstrating compliance and quality service delivery.

Internal Audits & Quality Assurance:Combine regular internal audits with quality assurance processes to continuously monitor service delivery. This integrated approach involves periodically reviewing client files to verify that all contractual obligations are met and identifying any gaps. A dedicated team can flag instances where reviews haven’t been conducted as expected and work with advisers to take timely corrective action.

Client Engagement Strategies:If clients consistently decline or do not engage with review invitations, consider proactive outreach such as personal calls or in-person meetings. Understanding the reasons behind non-engagement can help tailor your approach and improve service uptake.

Staff Training and Development:Regularly train your team on the importance of ongoing advice, contractual obligations, and regulatory expectations. Well-informed staff are more likely to adhere to best practices and deliver high-quality service.

By integrating these practical measures, your firm can ensure that every aspect of ongoing advice services is consistently delivered, thereby protecting your business, enhancing client relationships, and reducing regulatory risks.

FCA Removes Requirement for Consumer Duty Board Champions

In a recent regulatory update, the FCA confirmed that from 27 February 2025, firms are no longer expected to have a Consumer Duty Board champion. This change follows a letter from the FCA CEO to the Prime Minister and reflects the regulator’s move to grant boards more flexibility in their governance arrangements.

At a recent event, Matthew Brewis, Director of Insurance at the FCA, noted that the Board champion initiative had not made a significant difference in practice. The FCA will be updating its Finalised Guidance on the Consumer Duty to remove references to this requirement, allowing each firm to decide whether to retain the role.

What Do These Updates Mean for You?

As financial planners, your role is evolving alongside these regulatory changes. How will the multi‐firm review of model portfolio services and the FCA’s findings on ongoing advice impact your daily practice? Are there challenges you’ve faced or opportunities you’re excited to explore?

We invite you to join the conversation—share your thoughts and experiences in the comments, or get in touch if you’d like to discuss how these updates might shape your business. If you’re looking for tailored advice on enhancing your client services and ensuring full compliance, why not take the next step? Contact us for a free consultation, and let’s work together to keep your practice at the forefront of industry developments.

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.