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Practical Tech Insights for Paraplanners & Advisers

Welcome to the May edition of TechTalk! This month, we’re diving into the latest tech developments in financial services, with a focus on tools and innovations that can make your day-to-day work more efficient and client-focused.

🧠 Enhancing Client Understanding with Psychometric Tools

Scottish Widows has integrated a psychometric testing tool into their platform, developed in collaboration with Oxford Risk. This tool assesses clients’ risk attitudes, knowledge, and composure, providing deeper insights into their financial behaviours.

Why it matters:

• For paraplanners: Gain richer client profiling data during onboarding.
• For advisers: Tailor investment strategies that align more closely with client behaviours, potentially reducing reactive decision-making during market volatility.

👉 Learn more about the integration

🔧 Streamlining Platform Operations: The Platforms Association

A new body, the Platforms Association, has been established to address common challenges in the investment platform sector, such as re-registration delays and inconsistent tech interfaces. Members include major players like Aegon, Quilter, and Fidelity.

Why it matters:

• For paraplanners and advisers: Expect improved platform interoperability and service standards, leading to more efficient client onboarding and management.

👉 Read about the Platforms Association’s goals

📊 Advancing Pension Visibility: Origo’s Dashboard Connection

Origo has successfully connected to the UK’s pensions dashboards ecosystem, a significant step towards providing clients with a consolidated view of their pension pots.Why it matters:

• For paraplanners: Simplifies the fact-finding process by aggregating pension information.
• For advisers: Enhances the ability to present comprehensive retirement planning strategies.

👉 Discover Origo’s role in the pensions dashboard

📑 Standardising Data Requests: The LoA Data Checklist

The LoA Data Checklist, developed by the Fix LoA Action Group (FLAG) and maintained by Criterion, is gaining traction with over 70 firms adopting it. This standard aims to streamline the process of obtaining information through Letters of Authority.

Why it matters:

• For paraplanners and advisers: Reduces administrative burden by clarifying the data expected from providers, leading to faster and more accurate information retrieval.

👉 Explore the LoA Data Checklist

💰 Meeting Client Demand: AJ Bell’s Gilt MPS Launch

AJ Bell has introduced a new Gilt Model Portfolio Service (MPS), offering a low-cost investment option amid growing adviser demand for gilts. The service features a management charge of just 0.10% per annum and is available with a minimum investment of £10,000.

• For advisers: Provides a tax-efficient, low-risk investment option suitable for clients seeking stable returns.

👉 Learn about AJ Bell’s Gilt MPS

🔍 Final Thoughts

The financial services world is evolving fast, and it’s clear that tech is no longer a ‘nice to have’—it’s central to how paraplanners and advisers deliver value, stay efficient, and serve clients better. From smarter client profiling to platform improvements and clearer data standards, these developments are all about making your day-to-day work easier and more effective.

At We Complement, we specialise in supporting financial planning businesses behind the scenes—whether that’s paraplanning, streamlining operations, or helping you adopt the right tech tools without the overwhelm. If you’re curious about how we can help, pop us a DM here on LinkedIn or drop us an email at hello@wecomplement.co.uk. We’re always up for a chat.

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.

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:

• Cybersecurity: Best Practices for Financial Advisers
• Top Cyber Trends for Financial Services in 2025

🤖 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:

• Research Note: AI in UK Financial Services
• FCA and ICO to Host Roundtable on AI Adoption and Innovation

📜 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:

• Data Analytics and Artificial Intelligence (AI) | FCA
• AI Risks in Financial Advice | FT

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!

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.