The regulator published its much-anticipated policy statement PS20/6 (date) and guidance consultation GC20/1 on defined benefit transfer advice. Most of it will be unsurprising to industry, as much had been mooted prior to its publication, but it does bring some additional clarification what constitutes suitable advice for DB transfers. PS20/6 and GC20/1 build on two previous policy statements on DB transfer business. The guidance consultation ends in October.
ISA activity was less pronounced in the third quarter of 2017, with sales dropping to £1.5bn. However, pensions picked up the slack and generated around 70% of platforms’ net flows. This was due to a combination of investors exercising their pension freedom rights and the steady pipeline of DB transfers.
We're in an extended lockdown phase as several platform clients will not be reporting their results to the stock exchange until March. That's a pretty long wait so here are a few investment platform industry highlights to keep you going until the Fundscape Platform Report is issued.
Each year we provide five-year platform projections and look at the main drivers of growth and change, and their significance for different stakeholders.
The world is literally changing before our eyes. The nationalistic mood sweeping through global politics is re-setting government policy globally and there is a similar mindset shift sweeping through financial services. Whether fund managers and platforms like it or not, in this low-growth world the old way of doing business is no longer viable or sustainable and investors are no longer willing to subsidise it. That means increased focus on the cost of investment solutions and their component parts (advisers, platforms, fund managers...).