Good morning and welcome to your Morning Briefing for Tuesday 26 November 2024. To get this in your inbox every morning click here.
FCA branded ‘incompetent at best’ in scathing Parliamentary report
The Financial Conduct Authority (FCA) has been labelled “incompetent at best, dishonest at worst” in a damning report by a cross-party group of MPs and Lords.
The report, compiled by the All-Party Parliamentary Group (APPG) on Investment Fraud and Fairer Financial Services, accuses the FCA of systemic failures, including regulatory inaction, cultural defects and inadequate handling of whistleblower evidence.
The 358-page report, based on testimony from 175 individuals — including whistleblowers, scam victims and current and former FCA employees — paints a troubling picture of the watchdog’s operations.
Evelyn Partners appoints Kate Morrissey as head of asset allocation
Evelyn Partners has appointed Kate Morrissey as head of asset allocation, a newly created role within its central investment team.
Reporting to chief asset management officer Edward Park, Morrissey will lead macroeconomic and quantitative strategy teams, shaping the firm’s asset-allocation decisions.
Morrissey joins after a 23-year tenure at HSBC, where she most recently managed £16bn as head of world selection and global strategy funds.
Aviva completes £1.7bn buy-in with National Grid pension scheme
Insurance giant Aviva has completed a £1.7bn pensioner buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme.
The transaction, which was completed in October, included transitioning the group’s existing longevity swap with Zurich Assurance Ltd to Aviva. It will insure the benefits for 5,800 pensioner members of the Group.
Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by DLA Piper UK LLP, while the Scheme Trustee was advised by Mayer Brown International LLP.
Quote Of The Day
Tax rises like this must simply never again be done to business
– Confederation of British Industry (CBI) CEO Rain Newton-Smith laments the impact of the recent Budget
Stat Attack
A large proportion of defined contribution (DC) savers are at risk of an advice gap both at and in retirement, according to a new survey from Invesco of 151 retirement-focused advisers and 500 consumers with at least £50,000 in DC pensions either at or in retirement.
The study found that significant fears about retirement income, product suitability and access to advice could leave many people a long way short of their desired retirement.
22%
of clients come to advisers too late for retirement planning.
79%
of advisers say running out of money is a top client fear.
32%
of consumers don’t spend as much of their pension as they could afford because they dislike the idea of their savings going down.
51%
of advisers aren’t satisfied with current retirement products.
29%
of non-advised retirees do not actively seek any retirement information.
Source: Invesco
In Other News
Model portfolio specialist 8AM Global has introduced a new range of 8AM AQ Global portfolios, offering investors with a higher-risk appetite access to its proprietary AQ investment process.
This launch complements the firm’s existing ‘Classic’ and ‘Sustainable’ ranges, and focuses on global market-cap allocation.
The AQ Global range features three models with equity exposure levels of 60%, 80% and 100%, catering to varying risk preferences.
These portfolios are designed for cost efficiency, with an underlying portfolio Ongoing Charges Figure (OCF) of less than 0.30%.
At the core of the AQ portfolios is the ‘Adaptive Quant’ tool, a data-driven fund-selection system that identifies alpha-generation opportunities and ensures clear reporting.
The AQ Global portfolios leverage this tool to justify tactical use of actively managed funds, adapting seamlessly to shifting market data.
A key differentiator for the AQ Global range is its equity allocation, which aligns with the MSCI All Country World Index (ACWI) as a strategic benchmark.
The portfolios employ 8AM’s proprietary Floating Asset Allocation (FAA) methodology, integrating extensive crowdsourced data to provide unbiased and tactical insights.
The non-equity portion mirrors the 8AM AQ Classic portfolios.
Ash Weston, head of MPS at 8AM Global, said: “These portfolios respond to adviser demand, balancing robust principles with flexibility. While AQ Classic prioritises diversification, the AQ Global range meets the needs of investors seeking potentially greater long-term gains.”
Dynamic Planner, the UK’s leading digital advice platform, has appointed Rowan Whittington as growth director for Tram, an app designed to revolutionise client engagement in the financial-advice sector.
Tram, the UK’s first white-labelled adviser app, enables firms to engage with clients at scale, enhancing the way financial planning is delivered.
Whittington brings a wealth of experience from Confused.com, where she served as product director and head of personal finance.
She also played a key role in growing two start-up consumer-facing digital businesses and was part of the senior management team that developed and launched Veygo at Admiral Car Insurance.
In this newly created role, Whittington will focus on expanding Tram’s reach and impact, working closely with advice firms to drive investor engagement.
Over the coming months, she will also build a dedicated team to support Tram’s ongoing development.
Her position places her on Dynamic Planner’s Senior Leadership Team, Executive Management Team, and Board.
Dynamic Planner CEO Ben Goss highlighted Whittington’s track record in leading transformative digital initiatives and her deep understanding of consumer needs, calling her an “invaluable addition” to the team.
Whittington described the opportunity as an “exciting journey”, aligned with her passion for customer-centric innovation and empowering both advisers and their clients.
From Elsewhere
Trump tariff on China could lower global inflation, says UK economist (The Guardian)
BoE’s Lombardelli worries over above-forecast inflation, backs gradual rate cuts (Reuters)
Barclays fined £40m Over Qatar fundraise disclosures (Bloomberg)
Did You See?
We have seen a real push to make pensions more visible and understandable to consumers this year, writes Clare Moffat, pensions expert at Royal London.
Whether it’s the ‘Pay your pension some attention’ campaign, Pensions Awareness Week or Pensions Tracing Day, the aim is to help people engage with their savings.
All this activity is a great thing. The more engaged we can encourage people to be and the more they understand pensions, the better it is for them in later life.
But it’s also good for employers and advisers, in terms of engagement and support.
Our recent workplace pension research surveyed 4,000 employees with a pension and 500 people who had retired.
Almost half of the employees said they check their pension once every two or three months. Most check online, with reviewing annual statements a close second.
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