Links to articles about current events in Financial Services, our interpretation of their implications, and thoughts and practical ideas on how to tackle them.
At first glance, this week's ruling on the Carey SIPP court case seems to contradict the Judicial Review of the Berkeley Burke case. But after closer inspection, it doesn't (much). We outline our interpretation of some of the real implications for SIPP providers and what they need to do about them.
22nd May 2020
Lloyd's of London are in the news this week - they are striving to implement new IT systems and eliminate some aspects of culture (eg sexism). We explain how culture, in particular the hidden values that we wouldn't like to admit to, is largely invisible to those inside it and stubbornly resists change. It usually needs an external intervention, whether a new executive or an external agency.
13th May 2020
FCA have announced that Liberty SIPP has gone into administration. Like dealing with regulatory issues, this type of car crash can be avoided if action is taken early enough. We outline some of the options that are available, as long as regulators are on board and the business model is sound.
29th Apr 2020
A FOS adjudication makes it clear that appropriate advice has to be provided on both wrapper and the ultimate investment, even if the client 'insists' on their own investment choice. We discuss how to cope with client subjective 'wants' as well as rational 'needs' - and also explore how to manage the choice of an index for any compensation. Both issues require pragmatism and process.
21st Apr 2020
In the last article we discussed some immediate pandemic issues. Here we explore its medium and longer term implications for financial services in terms of changes to business models, and what firms can be doing now so that they are ready for the inevitable changes on the horizon.
7th Apr 2020
The coronavirus pandemic has shifted business priorities and the way we work. There is likely to be an easing up of regulatory pressure in the short term, and this presents an opportunity to get things in order before regulatory attention returns (as it inevitably will): we discuss some of the potential actions. The pandemic also raises the issue of customer vulnerability which now, more than ever, needs to be paid attention to.
31st Mar 2020
SIPPs used to be simple propositions that could be run at fairly low cost. The boom in both pensions and subsequent regulation have changed the business model to one that that is more complex, with many relationships that need to be managed. This requires a more intelligent approach to expenses and budgets than pure cost minimisation (even if fees have to be raised).
10th Mar 2020
Golfers can easily waste money by attempting to improve their swing in an undisciplined way. Conduct culture is a more complex 'system' than a golf swing, but we can still draw some lessons about how not to waste money on it. Key elements are clarity of goals, external feedback, and expertise on the tangible changes that are most likely to be effective.
27th Feb 2020
Victor Kiam famously bought the Remington company after being impressed with its shaver. A former Telos client was so impressed by how we go about our work that he decided that we were the right choice for his future - and here he explains why.
14th Feb 2020
One SIPP firm (Avalon) has already been brought to its knees, with non-standard investments (NSIs) a core issue. Initial due diligence is needed - but also continuing oversight on investments and investment managers. A SIPP property fund (Dolphin) has become illiquid.
7th Feb 2020
Our predictions (below) about FCA focus on alternative investments are borne out by a flurry of letters asking advisers pointed questions about the subject. We explore some of the issues in more detail, in particular how the overlapping responsibilities of SIPPs and advisers can cause problems.
24th Jan 2020
New areas that the regulators are likely to focus on 2020, particularly SIPP non-standard investments (NSIs) and responsibility for investment managers. Our experience is that firms who anticipate regulatory focus and deal with it early have the smoothest ride.
21st Jan 2020