Clear, practical insights for regulated advice teams, every month.
This month’s edition covers important updates on tax-free cash protection, drawdown timing, AI in the advice process, and a global clampdown on dodgy online promotions.
Whether you’re client-facing or behind-the-scenes, if you’re involved in shaping, delivering or supporting advice – this is for you.
Let’s dive in 👇
🧮 Drawdown: A Tax Point You Might Be Missing
HMRC has updated its guidance on when a drawdown pension is formally “brought into payment.” And it’s earlier than many assume.
According to their revised manual, a drawdown is triggered the moment:
- The fund is designated for drawdown, and
- Any payment is made – even tax-free cash.
This has implications for how benefits are reported and can affect death benefit tax rules.
What to do: Review how your firm records and describes drawdown commencement. Ensure client documentation and internal systems reflect HMRC’s stance.
💰 Tax-Free Cash Protections Are Changing – Time to Act
A heads-up if you’re advising clients with scheme-specific tax-free cash protections.
From 6 April 2025, new rules mean post-commencement transfers may no longer preserve these entitlements – especially where the receiving scheme doesn’t mirror the protection.
Why this matters: Protected lump sums can be lost, and that could have a huge financial impact.
Next step: Identify affected clients now. If a transfer is on the horizon, this could be the last window to preserve higher tax-free cash allowances.
📖 Discussion via Paraplanners Assembly
🤖 AI in Advice: FCA Launches Sandbox in Partnership with NVIDIA
The FCA has teamed up with NVIDIA to support firms testing AI in a secure regulatory environment.
Use cases include:
- Natural language tools for report writing
- Automated reviews of client files
- Real-time suitability checks and more
What this means: AI is moving fast — and the regulator is watching. Advice firms need to balance innovation with documentation, oversight, and client understanding.
Forward-thinking teams should keep tabs on this sandbox — it could shape the tools you’re using next year.
📱 Finfluencers Beware: FCA Targets Rogue Promotions
The FCA has taken the lead in an international campaign to crack down on illegal financial promotions online — particularly those using social media to skirt regulation.
Their latest sweep targeted influencers marketing investments without FCA authorisation, often on TikTok and Instagram.
If your firm creates content — or if individual advisers post online — this is a good time to refresh your approach. Disclosure, balance, and clarity aren’t optional.
💡 Need Extra Capacity or Technical Firepower?
We Complement supports advice teams across the UK with high-quality report writing, technical analysis, and regulatory alignment. We work alongside planners, compliance teams, and business leaders to make sure the advice process runs smoothly – and nothing regulatory falls through the cracks.
If you’re working through complex drawdown, planning for April 2025 changes, or trying to future-proof your templates – we’re here to help.
