Good morning and welcome to your Morning Briefing for Tuesday 4 February 2025. To get this in your inbox every morning click here.
UK crypto traders banking on Trump for major gains
UK crypto traders are optimistic about major gains this year, with many believing a Trump presidency could fuel a market surge, according to new research from GraniteShares, a global issuer of Exchange Traded Products (ETPs).
The study found that nearly one in three (30%) UK retail traders expect returns of at least 30% from crypto trading in 2024, largely driven by the belief that a Trump administration would ease regulatory restrictions and boost the market.
Transact and CURO automate adviser-fee reconciliation
Transact and CURO have launched a new integration that automates the reconciliation of adviser fees, eliminating the need for manual data entry and file uploads.
This development marks a significant step in improving efficiency for financial advice firms.
The integration, enabled through Transact’s Remuneration API, allows thousands of clients’ adviser fees to be securely and automatically transmitted to CURO, the financial-planning software provided by Time4Advice (T4A).
Caitlin Southall: A call for SSAS regulation
I have been a huge advocate of the self-invested sector for decades, due to the flexibility of investments and tax advantages, writes Caitlin Southall, head of SSAS proposition at WBR Group.
But I continue to be concerned and indeed frustrated by some of the consequences of changes implemented as part of A-Day in April 2006 – namely, the removal of the requirement to have a compulsory pensioneer trustee.
Quote Of The Day
Cancer support works best when it treats the person as a whole – taking into account the mental and social factors that affect a person, as well as the disease itself
– Marking World Cancer Day (4 February), Christine Husbands, commercial director at RedArc, reveals that cancer is the condition for which RedArc receives most new cases. She added that “practical advice and emotional support are every bit as important as financial assistance, if not more so”.
Stat Attack
According to figures released by HMRC, over 11.5 million taxpayers met the self-assessment deadline last Friday (31 January):
732,498
The number of people who filed on 31 January itself.
Over 31,000
The number of people who cut it even finer by filing in the final hour before the deadline.
1.1 million
The estimated number of people who failed to file in time.
£100
The individual penalty for a late filing.
£110m
The amount this could net HMRC in late-filing revenue alone.
Source: HMRC
In Other News
The Treasury Committee’s call for evidence on the effectiveness of the Lifetime Individual Savings Account (Lisa) closes at 5pm today (4 February).
The Lisa was introduced by then-Chancellor George Osborne in the 2016 Budget to help people under 40 save for their first home or retirement.
Account holders can contribute up to £4,000 annually until the age of 50, receiving a 25% government bonus on their savings.
However, withdrawals for any reason other than a first home purchase, terminal illness or reaching 60 incur a 25% penalty, something that was left unchanged in the Autumn Budget.
MPs are now reviewing whether the Lisa remains fit for purpose nearly a decade after its launch.
The Committee is seeking input from industry experts, consumers, and financial professionals on key issues, including whether the Lisa should be reformed, its effectiveness as a pension product and whether the withdrawal penalty should be removed.
Other areas under scrutiny include the annual contribution limit, house price cap and whether Lisas should be restricted to those without workplace pensions.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The Lifetime Isa is already making a huge contribution to people’s financial resilience, with the most recent HMRC figures showing a record of 755,000 Lisas were paid into during the tax year 2022/23.
“However, there is more that can be done. The Lifetime Isa has the potential to transform the retirement fortunes of groups such as the self-employed, as well as helping more people achieve their home ownership dreams.”
Those who wish to submit evidence can do so here.
Two local charities have received a financial boost from Dronfield-based financial planners Belmayne, which has donated more than £8,000 through its charitable foundation.
Derbyshire Carers Association and Edale Mountain Rescue Team each received £4,100, raised over the past year by the Belmayne Foundation.
The organisation, funded by the firm’s partners and staff-led events, has now donated over £50,000 to small charities since its launch in 2019.
Derbyshire Carers Association, which supports unpaid carers, will use the funds for respite activities and awareness roadshows.
Meanwhile, Edale Mountain Rescue Team, one of the UK’s busiest rescue services, plans to upgrade IT equipment, replace windproof clothing and water rescue gear, and fund training courses.
Edale Mountain Rescue chairman Ian Bunting said: “We rely on donations, and this generous support will enhance our team’s capabilities.”
Belmayne partner Ben Smalley, who oversees the firm’s charity efforts, added: “Celebrating our 20th anniversary by supporting these fantastic charities has been a privilege.
“We’re committed to helping organisations that improve the health and wellbeing of our community.”
From Elsewhere
Beijing hits back at Trump tariffs with Google probe (Bloomberg)
Millions face council tax rise of more than 5% (BBC News)
Trump tariffs: what’s at stake for the UK and EU? (The Guardian)
Did You See?
Advisers are balancing and facing conflicting factors, writes Noel Butwell, chief executive of Abrdn Adviser.
One is growing demand. The sector has seen steadily expanding client lists, up from 2.4 million in 2017 to more than 3.5 million in 2023, according to the Financial Conduct Authority’s latest retail mediation activities return (RMAR) data.
And appetite for advice is expected to keep rising – something that will take up advisers’ capacity, whether time, skill or capital, to meet.
Part of this stems from behavioural changes in the decade since pension freedoms. Clients are generally opting for drawdown, rather annuities as was the case pre-pension freedoms.
With various financial crises over the last few years covering Covid and the cost-of-living crisis, more consumers are realising this is complex and recognise they need help.
This ongoing trend will be compounded by an ageing population that’s living longer than ever before. The average life expectancy at birth for a woman born in England between 2021-2023 is now 83, nearly five years more than it was in 1980.
So, how do we protect and unlock advisers’ capacity, whether in terms of time, energy or capital?
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