Your IndustryAug 31 2018

Phoenix crackdown & pension transfers: the week in news

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Phoenix crackdown & pension transfers: the week in news

For those of you who were wondering whether the Prime Minister can dance, this week we found out what the answer was but we'll let you reach your own conclusions.

But if you're looking for news which is slightly less frivolous, then you've come to the right place. It's time for the week in news.

1) Top of the Pops

One of the nation's largest advice businesses, St James's Place, can lay claim to 12 per cent of UK adviser sales, based on its most recent financial data.

According to a report by analysis firm Plimsol, SJP topped the group of advisers with the largest market share by a margin of 6 percentage points.

The data showed SJP made £893.1m in sales in the year 2017/18, based on its latest financial results.

Collectively, the biggest advice firms are on the road to market dominance, the report showed.

The top 25 firms claimed a market share of 48 per cent of sales in the last year and experienced an average 12 per cent growth, compared with the market average of 8 per cent.

2) Snitches get stitches

This week it emerged The Pensions Regulator (TPR) is asking trustees of troubled schemes to keep a record of pension transfer activity and submit a monthly list of the financial adviser firms used by its members to the Financial Conduct Authority (FCA).

In a letter sent to trustees of several pension schemes, the pensions watchdog said the level of transfer activity in the pensions industry had increased "significantly" in recent years, meaning electronic records should be maintained.

TPR is also advising scheme trustees to contact the FCA in case of "specific concerns" or if "they become aware of specific issues in relation to regulated financial advice provided by an FCA-authorised adviser with respect to individual transfers".

According to data from the FCA, £20.8bn was transferred out from defined benefit (DB) schemes during 2017, more than double the volumes registered in the previous year.

3) Back to basics

Aegon's platform problems isn't only causing problems for the retirements of its clients, but also for those of its own staff.

Ex-Aegon chief operating officer Tommy Young has come out of retirement to help the company solve the problems caused by its recent replatforming.

Mr Young was appointed chief operating officer in 2011 and retired in February and Aegon said he will now be working with the firm to improve the issues caused by the migration from the Cofunds platform for an indefinite short-term period.

Aegon said in June it had factored in £3m in costs to deal with the issues and would be compensating advisers who have experienced problems with transactions.

4) Flight of the Phoenixes

The government will give new powers to the Insolvency Service to crack down on reckless directors who phoenix their firms.

The Department for Business, Energy & Industrial Strategy (BEIS) has unveiled a series of new measures on corporate governance and insolvency which include new powers for the Insolvency Service to investigate directors of dissolved companies where they are suspected of having acted in breach of their legal obligations.

Under the new powers, which will be set out in further detail in the autumn, the Insolvency Service will be able to fine directors or even have them disqualified.

The government said the new rules respond to the many calls for the government to act against the practice of phoenixing, which is often used to avoid liabilities.

5) Too much information

The FCA has been taken to the Information Commissioner over an adviser's "inaccurate" entry on the regulator's register.

In the latest chapter in a lengthy dispute between Alistair Hinton and the FCA, the adviser argued his entry on the register of regulated firms was still inaccurate despite several years of attempting to have this issue resolved.

The dispute centres on a register entry which gave the impression both him and his wife were directors of a firm which the regulator had publicly censured.

Mr Hinton had initially complained to the FSA in 2009, when he was told rectifying the matter by amending the register would be too costly but the regulator had added "guidance notes" to clarify the situation.

Unhappy about the amendment, which had made the issue "as misleading as ever", the adviser took the matter to the Complaints Commissioner, but it emerged the regulator would be unable to address the complaint because doing so could cost up to £100,000.

damian.fantato@ft.com