Money Marketing’s Weekly Must-Reads: Top 10 Stories
In this week’s edition: John Moret questions whether we’re about to witness the next big pensions blunder, and why 2025 could (finally) be the year the UK sees significant progress.
John Moret: Is this the next big pensions blunder?
John Moret chaired a pensions panel discussing government reforms and industry challenges. The agenda covered pension scheme investment, small pots, the Consumer Duty, collective defined contribution and dashboards.
He criticised unclear priorities, stating the vast scope risks undermining progress. The government aims to boost UK investment but faces resistance, particularly against mandating trustee strategies.
Moret flagged small-pot consolidation delays and SIPP market risks, urging support frameworks. He also advocated flexible small-pot cash-outs, generating Treasury revenue and goodwill, while warning the expansive agenda risks future pension outcomes.
Platforms outlook: Finally, improved flows and a flight to quality
Martin Jennings forecasted continued improvement in platform inflows for 2025, driven by advisers favouring high-quality service providers. However, transfer inefficiencies remained problematic, with most advisers moving clients’ funds in cash rather than in-specie.
Jennings anticipated growing investor appetite for bonds and equities as interest rates fell. He predicted limited impact from AI until 2026 and beyond, despite ongoing discussion. Consolidation within the industry was set to persist, focusing on quality acquisitions. Increased regulatory pressure under the Consumer Duty would likely lead to exits and consolidation among platforms.
Why 2025 could (finally) be the UK’s year
In 2024, UK active managers delivered strong performance despite economic struggles and investor outflows, with UK Equity Income and All Companies funds rising 8.9% and 8.4%, respectively.
Mergers, acquisitions and share buybacks supported market prices, while smaller companies showed signs of recovery. However, low sentiment and persistent outflows hindered growth, and valuation gaps with global markets remained. Inflows resumed slightly in November.
Darius McDermott, managing director of FundCalibre and Chelsea Financial Services, highlighted undervaluation and political stability as drivers for 2025’s potential, contingent on renewed investor confidence.
Titan hires head of sales from Succession Wealth
Titan Wealth appointed Scott Hamilton as head of sales for its discretionary investment arm, Titan Private Wealth, focusing on high-net-worth market expansion.
Previously a business manager at Succession Wealth, Hamilton brought over 25 years of financial services experience and expertise in sales leadership. He succeeded Mark Livesey, now group managing director, who continues overseeing Titan Wealth’s broader growth strategy.
Backed by Parthenon Capital Partners and Hambleden Capital, Titan Wealth manages £35bn in assets, serving clients domestically and internationally from the Channel Islands and the UAE.
Pensions outlook: Navigating change and uncertainty in 2025
In 2025, pensions are navigating transformative changes amid consultations and legislative updates. Key shifts include the inheritance tax reform, which stirs concerns about unclear guidance and the emotional burden on beneficiaries.
The FCA is reviewing advice guidance boundaries and defined contribution pension rules, focusing on consumer confidence and value for money. Pensions dashboards integration and the anticipated Pension Schemes Bill promise greater transparency and reforms. Meanwhile, merging council pensions into mega funds aims to unlock £80bn for economic growth.
Trust and careful planning remain critical challenges. Caitlin Southall, head of Ssas at WBR Group, highlights the complexity ahead.
Vitality Health Insurance announces new CEO
Vitality announced the appointment of Dr Arun Thiyagarajan as CEO of its health insurance business.
Thiyagarajan, formerly global healthcare transformation director at Bupa, brought extensive experience, including roles as general manager at Bupa Global and medical director at UK Health Clinics. He succeeded Dr Keith Klintworth, who remained with Vitality as a consultant. Thiyagarajan focused on expanding Vitality’s innovative health services and Shared Value approach.
CEO Neville Koopowitz highlighted Thiyagarajan’s pivotal role in transforming insurance delivery and member engagement.
Hurst Point Group names new CEO for Hawksmoor
Hurst Point Group appointed Michael Bishop as managing director of its investment management division, overseeing Hawksmoor and Gore Browne Investment Management.
Bishop, with over 20 years of financial services experience, joined from WH Ireland. He succeeded Sarah Soar, who stepped down after five years but will aid in the transition. Soar’s leadership included navigating Covid, completing acquisitions and integrating teams.
Group CEO Ian Gladman praised Soar’s contributions and welcomed Bishop to further develop the business managing over £10bn in client assets.
Hoxton Wealth launches online community for those interested in financial planning
Hoxton Wealth launched a free online community for aspiring financial planners, open to both members and non-members.
The platform, ahead of the next trainee wealth manager programme, provides industry information, Q&A sessions, career clinics and qualifications guidance. Participants gain early access to Hoxton Life podcasts and newsletters. The community also hosts annual events, potentially offering select individuals a place in the wealth manager programme.
Additionally, Hoxton is expanding its recruitment in the UAE through this initiative, which has been running for two years.
Industry legend Ken Davy awarded OBE in King’s New Year Honours List
Ken Davy, the founder of DBS and SimplyBiz, was awarded an OBE in the King’s New Year Honours List.
With over 50 years in the financial services sector, Davy was recognised for his contributions to community rugby league football, having chaired Huddersfield Giants since 1996. Ian McKenna, founder of the Financial Technology Research Centre, praised Davy’s impact on the financial-advice industry.
Other notable honours included Sarah Albon, Jessica Glover, Catherine Vaughan and John Flint for services in public administration and public service.
How to ‘borrow’ discretionary management permissions
Firms cannot undertake the regulated activity of managing investments unless authorised by the FCA.
Some explore alternatives, such as appointed representatives (ARs) or trading names, where an authorised firm holds responsibility. While ARs and trading names may appear to offer freedom, the authorised firm remains accountable for the investment management activity. Firms must ensure clients clearly understand their roles, responsibilities and any fee structures involved.
Compliance with regulations and clear communication is crucial to avoid misrepresentation and ensure appropriate service delivery.
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