Money Marketing’s Weekly Must-Reads: Top 10 Stories
This week, pensions experts react to the government’s DB surplus plans, dissecting their impact on retirement schemes. Meanwhile, Standard Life CEO Andy Curran announces his retirement, marking a leadership transition.
Pensions experts react to government’s DB surplus plan
Pensions experts largely welcomed government proposals allowing DB scheme surpluses to be invested in the economy or returned to employers.
While some, including AJ Bell’s Rachel Vahey, cautioned against risking members’ funds, TPR’s Nausicaa Delfas noted 80% of schemes are fully funded but stressed member security as the priority. TPT’s David Lane backed the plan’s growth potential but urged safeguards, while SPP’s Chris Ramsey highlighted economic benefits yet warned of reduced member security.
Vahey warned against repeating past scandals, emphasising trustee responsibility to protect pensions from employer pressure and uncertain conditions.
LV= launches ‘platform services’ in partnership with Embark
LV= launched its Embark-backed adviser platform after a 12-month trial, integrating its smoothed managed funds with 5,000 others and DFM portfolios.
The platform uses Embark’s white-label tech, combining FNZ infrastructure with a custom interface. Planned features like drip-feed drawdown aim to bolster retirement advice post-Consumer Duty. Rated ‘superior’ by AKG and five stars by Defaqto, it targets streamlined adviser access. LV=’s Gwen Haggo highlighted enhanced digital integration, while Embark’s Daniel Giddings emphasised market-leading reliability.
Both underscored the partnership’s focus on innovation and member security amid economic ambitions.
Standard Life CEO Andy Curran to retire in 2025
Standard Life CEO Andy Curran announced his 2025 retirement after five years leading the Phoenix Group-owned firm, capping a 35-year career.
Under his tenure, Standard Life became pivotal to Phoenix’s growth, achieving a £1.5bn cash target two years early and driving 2023 profits up 13% (£617m) via workplace pension growth. Curran prioritised expanding retail products and revitalising the brand. Post-retirement, Phoenix will merge divisions under Mike Eakins, retaining key leaders.
Curran highlighted urgent retirement savings challenges, while Phoenix CEO Andy Briggs praised his customer-focused transformation.
SJP ongoing advice review ‘progressing as planned’
St James’s Place confirmed its ongoing advice charge review progresses as planned, following increased client complaints and a £426m refund provision linked to FCA scrutiny.
The firm’s 2024 results revealed resilience: £18.4bn gross inflows, record £190.2bn funds under management and a rebound to £4.3bn net inflows despite a share price plunge and temporary FTSE 100 exit.
CEO Mark FitzPatrick noted strong adviser-client engagement and confidence in addressing retirement savings gaps, though challenges persist from regulatory probes into service evidence.
Evelyn Partners to ‘focus solely on wealth management’ as it sells Fund Solutions business to Thesis
Evelyn Partners agreed to sell its Fund Solutions division to Thesis, prioritising wealth-management focus.
The deal (pending approval) transfers £10.6bn in assets and 75 staff to Thesis, expanding its £40bn fund services. CEO Paul Geddes cited streamlined operations after inflows surged 50% to £2.1bn. EPFL’s Neil Coxhead emphasised Thesis’s expertise for continuity, while Thesis’s David Tyerman welcomed enhanced client offerings. The sale follows Evelyn’s strategic review, aligning with earlier divestments to sharpen core services.
Both firms underscored seamless transitions, maintaining service standards for clients and staff.
Andrew Tully: The government needs to look at alternatives to IHT on pensions
Andrew Tully urged the government to seek alternatives to applying Inheritance Tax (IHT) to pensions, warning HMRC’s 2027 proposal risks complexity and harm.
Discretionary pension payouts, blended families and tight six-month deadlines could delay processes, triggering penalties and stress for vulnerable beneficiaries. Illiquid assets risk late charges, while rushed decisions may erode support.
Tully cautioned the move might deter pension savings, heightening reliance on state care funding. He called for policies balancing HMRC’s aims with consumer protection, stressing the industry’s need to prioritise bereaved families’ needs over administrative haste.
AR, VR and ER have ‘huge potential’ to transform financial advice
Progeny Group announces leadership changes as Neil Moles steps down as CEO
Progeny Group announced leadership changes as founder Neil Moles stepped down as CEO, appointing Tom Wood as his successor and Bobby Ndawula as CFO.
Moles, who led Progeny’s growth to £9bn in assets and 700 staff, will remain as non-executive director and president. Wood, previously CFO, aims to drive further expansion. Ndawula, former Skipton Group CFO, strengthens the executive team. Chair Ewen Stevenson praised Moles’ leadership, emphasising continuity and growth.
The appointments remain subject to regulatory approval.
Majid Hussain: A balanced perspective on Rachel Reeves and the economy
Majid Hussain analysed Chancellor Rachel Reeves’ economic policies, highlighting criticism over tax reforms but noting the Labour government inherited existing challenges.
He confirmed high-net-worth individuals are considering relocation due to tax changes and urged a competitive, long-term approach. Hussain warned against discouraging private-equity investment, citing global competition, particularly from the US. He called for pragmatic policymaking, suggesting the government refine its proposals based on emerging evidence.
While Reeves faces scrutiny, Hussain argued broader economic difficulties predate her tenure.
Chancellor to soften non-dom tax crackdown amid exodus of millionaires
Chancellor Rachel Reeves announced plans to soften non-dom tax changes following concerns over a millionaire exodus.
Speaking in Davos, she confirmed an amendment to ease temporary repatriation rules. Data showed over 10,000 millionaires left the UK in 2024, continuing a post-Brexit trend. While Labour pledged to abolish non-dom status, tax advisers warned Reeves’ changes may not prevent further departures.
Critics highlighted increased inheritance-tax exposure as a key issue, urging the government to reconsider its approach.
