Perhaps the best thing about the news this week was the one thing which was gloriously missing from it: barely any mention at all of the Royal wedding.
Having now completely ruined that, let's move on to our run down of the week in news.
1) Getting EUsed to being poorer
This week Bank of England governor Mark Carney waded back into the paddling pool of predictions about the future of Britain's economy and didn't seem to find the water any more welcoming.
He claimed Britain's referendum decision to leave the European Union (EU) has so far cost each UK household an average of £900.
Mr Carney said the economic reality since Britain voted to leave the EU had been much worse than the Bank's forecasts anticipated.
He quantified that under-performance by saying the economy was 1-2 per cent smaller than its May 2016 forecasts expected.
Mr Carney continued on this theme in a speech later in the week, saying a "disorderly" Brexit could see interest rates fall rather than rise.
But Mr Carney said it remained the central bank’s base case that a deal on the terms of the UK leaving the EU would happen and interest rates would rise.
2) Rise of the Machines
As the robots come to take our jobs, perhaps the only salvation advisers have is the Financial Conduct Authority, which this week burst the bubbles of a few robo-advisers.
The regulator found failings around disclosure and suitability during its review of robo-advice which required many of the companies which took part in the process to make "significant changes".
As part of the review the regulator looked at seven firms offering automated online discretionary investment management (ODIM) and three firms providing retail investment advice exclusively through automated channels.
Among the FCA's concerns was the fact service and fee-related disclosures at most automated fund management firms were unclear.
The FCA also found problems with the way these companies conducted suitability assessments, with many firms failing to evaluate a client's knowledge or experience, investment objectives and capacity for loss.
Some of the robo-advisers later responded to these findings by saying the sector was still young and evolving.
3) How it feels to be free
A financial adviser, who has been reported to the Financial Conduct Authority after advertising free seminars on defined benefit transfers in a local magazine, hit back this week claiming the events were "educational".
John Webb, a chartered financial planner and managing director of Midland Independent Financial Services, recently took out an advert offering four free seminars across the West Midlands for those looking to transfer out of a defined benefit (DB) pension.
But according to an email seen by FTAdviser Mr Webb has been reported to the FCA over concerns whether he presented defined benefit transfers in an unduly positive light in an advertising feature in the magazine the seminars were promoted in.
But Mr Webb said he was not aware of having been reported to the FCA and he said he had not been contacted by the regulator.
4) Mo money, mo problems
Some advisers might be reluctant to do DB transfers, but that doesn't seem to have stopped the huge flow of money out of final salary schemes.
Cash transferred out from DB schemes to defined contribution (DC) plans more than doubled in 2017, reaching £20.8bn, data from the FCA revealed this week.
According to a freedom of information request from FTAdviser’s sister newspaper Financial Times, the watchdog registered £7.9bn transferred out in 2016.
In total, 92,000 transfers from DB to DC schemes were reported last year — a 50 per cent increase, when compared to 61,000 reported the year before.
According to the data, around £5.5bn was transferred out of DB plans in the fourth quarter of 2017, compared with £2.5bn in the same period the year before.
5) Clawback drawback
The Financial Services Compensation Service (FSCS) could consider clawing back compensation paid to consumers in relation to self-invested personal pension providers if the courts make differing rulings to its position.
Speaking at the Association of Member-Directed Pension Schemes (AMPS) conference this week, James Darbyshire, general counsel at the FSCS, said the lifeboat scheme may need to take a view on claims when there isn't guidance from the courts.
He said: “We have to take a view based on the information that is out there, based on the information that consumers bring to us, and based on our experience as whether we think there is a legal liability or not.”
Mr Darbyshire was answering a question about claims for compensation related to investors who put money into Sipps provided by Carey Pensions and Berkeley Burke, two separate but similar cases currently going through the courts.
He said in a bid to compensate investors as quickly as possible the FSCS may payout before the two legal cases are decided.
damian.fantato@ft.com
