Coaching – the new behaviour taking over the workplace

Posted on August 16, 2023May 16, 2025 by Claire Tunley

These findings, outlined in our latest report, ‘Reskilling Everywhere All at Once,’ also placed a spotlight on Coaching – a behaviour reported by our members as being most in demand and prioritised for investment, closely followed by adaptability, relationship management and critical thinking. For the first time, we are starting to see firms embed coaching cultures to equip managers to meet staff expectations around growth and development. 60% of Financial Services Skills Commission members have reported an increase in demand for coaching skills in 2022, recognising the need for good leadership and self-management skills, with many investing in programmes to train as many employees as possible with coaching skills. This is a decisive shift towards embedding a coaching culture throughout their organisation.

We know the demand for coaching has grown since the pandemic, which revealed the extent to which managers (departmental or line) are critical to the pastoral care and development of their teams. As a result, changes to performance assessments now require many managers to demonstrate coaching skills. As a CEO of a small organisation, I use coaching skills daily to support my team to develop their professional objectives as well as foster self-confidence and self-awareness, which in turn creates a more inclusive and productive working culture.

Danske Bank, a Commission member, is building a coaching culture throughout its workforce, with a focus on using coaching as an adaptive leadership tool for its 250 people leaders. The bank has also introduced a “You Coach You” intervention, ensuring coaching is increasingly accessible for employees across the business.

CoachHub, a digital training provider, reports nine out of ten firms are planning to increase their use of coaching next year, illustrating the essential relevance of this skill. Coaching can also be particularly valuable in the context of upskilling and reskilling, where belief in potential and motivation make all the difference.

Firms are using a variety of approaches to develop and embed future skills and behaviours within their organisations, be it through apprenticeships and internal academies or via upskilling and reskilling programmes. Investment in reskilling is having a positive impact, but more work is needed. This is why our report calls on UK business leaders to prioritise reskilling programmes to boost innovation, productivity, and competitiveness across the financial services industry.

Our report comes at a pivotal time for our sector, as we face acute shortages in the labour market coupled with an increasing skills gap. Our work shows that developing talent is vital if the sector is to remain competitive on the global stage. The need to ensure our workforce is equipped with critical skills and behaviours has never been so urgent.

Claire Tunley, CEO, Financial Services Skills Commission

To find out more about the Financial Services Skills Commission and their latest research, please visit here.

1. CoachHub, Business Trends in Coaching 2023

Cutting Carbon: The Power of Collective Change

Posted on August 8, 2023May 16, 2025 by Paul Holland

Thinking about the current carbon output of the financial sector, there are several key contributors, with one being investments and lending decisions. Many financial institutions continue to provide funding for fossil fuel projects, such as coal mines and oil and gas drilling, which adds significantly to carbon emissions. Customer products and services are also a consideration, including high-carbon mutual funds or real estate investment trusts (REITs) that invest in carbon-intensive properties.

Reports show that in 2019, the UK Finance sector was responsible for financing 805 million tonnes of CO2 through their lending and investment activities. However, with a lack of organisational transparency and comparable data, the true number is thought to be much higher.

Even with this estimated number, 805 million tonnes of CO2 is almost double the annual net emissions of the UK as a whole. Putting this into greater context, this would be the same amount of CO2 generated by 57 billion flights from Amsterdam to Paris, or equivalently, fully charging 97 trillion smartphones.

The financial services industry also creates a large carbon footprint from its direct emissions. This can be attributed to a substantial number of offices and data centres that consume high amounts of energy, as well as regularly conducting carbon-intensive processes such as print, pack and post.

This large amount of carbon has a profoundly negative impact on our environment and public health. As global temperatures rise, the effects are becoming clearer and more devastating, with increased sea levels and altered weather causing coastal and structural damage, heat waves destroying coral reefs and other habitats, reduced crop yields and increased threats to human life through air pollution and infectious diseases.

The industry as a whole is in need of a collective shift, especially with consumer demand for environmentally-friendly products on the rise. Customers are becoming increasingly aware of the threats to our environment and are more likely to do business with organisations that prioritise sustainability, so those falling behind the curve may be in danger of failing to retain or attract new clients.

When it comes to lending and funding, banks and other large financial organisations will be vital for encouraging change, shifting their support from high-emitting processes and behaviour and pushing for sustainable low-carbon alternatives. This will include creating incentives that encourage ESG compliance, along with decarbonising their portfolios by supporting the development of new, sustainable tech and cutting finance to companies that remain carbon intensive.

Organisations must also take the steps to reduce their direct emissions and become carbon neutral, sourcing renewable energy for buildings and offsetting emissions through green initiatives. The development of offices and other commercial buildings will be important, with possible larger-scale improvements involving the use of recycled rainwater and solar panels.

Additionally, digital capabilities will play a large part in this change. With the pandemic helping to push more services online, financial organisations should continue this trajectory, starting by increasing their online banking capabilities and lessening the need for physical branches. Switching paper comms to digital will also be an easy win for FS, as using a secure email or other chat solution minimises reliance on carbon-intensive postal services and offers greater efficiency, speed and data security. Top of Form

Finally, moving IT workloads from on-premise data centres to the cloud is a step businesses are more readily starting to take, with studies suggesting that the reduced energy consumption could offer potential annual savings of £1.2bn and carbon reductions equivalent to the annual emissions of over 4 million passenger vehicles.

As financial services professionals, we have the power to make a positive impact through the decisions we make in our personal and professional lives. The stepping stones for industry change are starting to be laid out – it is now up to us to follow them, so that we can contribute to a more sustainable future for all.

Paul Holland, CEO and Founder of Beyond Encryption

paul.holland@beyondencryption.com

Associate Membership Offerings

SEAR/IAF – The countdown has begun!

Since the Central Bank of Ireland proposed the introduction of the Senior Executive Accountability Regime and the broader Individual Accountability Framework, firms and individuals alike have been working hard to assess the changes required and the impact of the new regime on those affected. Due to the type and scale of the changes planned, this is likely to be one of the most impactful regulatory changes seen in recent years.

The recent consultation paper published by the Central Bank has clearly laid out what the new regulatory expectations will be and whilst firms digest both this document and the supporting guidance, there are still many firms and individuals looking to gain further clarity on how this will impact them. With the clock ticking towards the initial implementation dates, now is the time to start considering how you and your organisation could benefit from exploring how RegTech can support and streamline your accountability regime.

With more experience of SM&CR implementations in the UK than other RegTech supplier, why not join the Worksmart team as we discuss and debate the challenges that the new regime will bring to firms, and the lessons learnt from UK organisations who have now been subject to an accountability regime for some years now.

Whilst some aspects of the newly proposed regime/framework including SEAR, will initially only apply to certain regulated firms, others such as new conduct rules for certain individuals and business standards for firms will apply for all regulated firms. We will seek to discuss and debate all areas and engage with the audience for polling, commentary, Q & A’s and general observations and experience, so if you feel that you and your firm could benefit from the vast experience that the Worksmart team have built up in the UK, then join us for what will be a lively and open discussion.

To book click here

Vanessa Palmer
Database & Events Management Principal
vanessa.palmer@worksmart.co.uk
07535031514

Linking Consumer Duty outcomes to Employee Competence

Since the FCA introduced plans for Consumer Duty, firms and individuals alike have been working hard to ensure they deliver against the new requirements. However, whilst there has been a lot of work put into implementing the cross-cutting rules, and the four consumer outcomes, very little has been said about the “employee” dimension, other than in respect of the Conduct Rules.

If asked, would your organisation be confident to hand over their Training & Competence records to the regulator? If they asked to see your T&C Regime pre-Consumer Duty and post, would it really look any different? If asked, could your firm demonstrate analysis and decisions around appropriate MI to evidence that your T&C scheme supports good consumer outcomes? Would being asked to demonstrate “role relevant” training on conduct rules to staff make you start to feel a little uncomfortable?

Regardless of whether you might answer Yes/No/Don’t know to any one of those questions, we think your input and perspective would add value to our debate on the topic, so the Worksmart team to discuss:

1. The regulators expectations of your T&C Regime
2. What analysis and changes have you made to your T&C arrangements in light of Consumer Duty
3. What does a good T&C regime look like under Consumer Duty?
4. How you can evidence, measure, and monitor the competence of the staff to deliver defined customer outcomes
5. How can your T&C arrangements support Culture change in your firm
6. How RegTech can improve your approach to T&C

To book click here

Vanessa Palmer
Database & Events Management Principal
vanessa.palmer@worksmart.co.uk
07535031514

Ready, Steady Grow! Edinburgh

At St Andrew Square, Edinburgh, EH2 2AD The Enterprise Investment Scheme Association (EISA) is bringing together small businesses, investors, IFAs, entrepreneurs and business advisers — all in one place to hear expert opinion from SME industry experts.

The event is split into two parts – a technical seminar, followed by a networking reception.
The seminar is 4pm registration for 4.30pm start till 5.45pm at The Edinburgh Grand, 42 St Andrew Square, EH2 2AD.
The networking reception is 6pm till 7.30pm next door at RBS/Dundas House, 36 St Andrew Square, EH2 2AD.

Ready Steady Grow Edinburgh – sign up here

Seminar agenda and speakers forthcoming.

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Here’s an overview of this year’s entire series of Ready Steady Grow! events:
Edinburgh (29 Aug), Birmingham (20 Sep), Cardiff (27 Sep), Bristol (28 Sep), Manchester (4 Oct), Leeds (10 Oct), Cambridge (11 Oct), Newcastle (17 Oct), Belfast (19 Oct), Oxford (2 Nov)

If you have any queries or would like to attend please contact Mary Rodgers on mary.rodgers@eisa.org.uk

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FAQs
Who should attend this event?
Entrepreneurs looking to start a business, or access funding to take your business to its next level
Wealth managers looking to gain knowledge and expertise in EIS and small company investing
Investors looking to invest in the ‘Next big thing’
Professional Advisors who want to help SMEs develop and grow.

Will refreshments be provided?
Drinks and canapés will be provided

***
We, the EISA, may share your personal data with third parties in certain circumstances including (but not limited to) our sponsors. Before we disclose personal data to a third party, we take appropriate steps to ensure that the third party will protect personal data in accordance with applicable privacy laws and in a manner consistent with our privacy policy, which can be accessed here: https://eisa.org.uk/about-eisa/privacy-policy/.

Financial advisers and automation

Posted on August 2, 2023May 16, 2025 by Erin Sims

These new challenges include:

a talent shortage due to the aging demographic of advisers and lack of new talent entering the industry
escalating operating costs due to current economic conditions
insurance premiums and compliance expenses
as well as a sustained decline in real household disposable income since quarter one of 2020, which can reduce demand for financial advice as well as the ability or willingness to pay fees to receive such advice

In response to these challenges, IFAs are increasingly turning to automation.

How are IFAs leveraging automation?

Our recent Real Economy survey showed that process automation was the second most important action businesses had taken over the past 12 months to combat staffing challenges, with 76% of respondents stating that the successful implementation of automation had directly resulted in improved productivity.

Robo-advice

The rise of robo-advice is transforming the way financial advice is delivered. Robo-advice platforms leverage algorithms and artificial intelligence to provide automated investment advice and portfolio management tailored to clients’ individual goals and risk tolerance. This surge in popularity is driven by the affordability and convenience it offers, allowing IFAs to serve a broader client base.

Client data and portfolios

Automated systems allow financial advisory firms to streamline the client onboarding process in a drastically reduced time. For example, automated ‘know your customer’ (KYC) checks can reduce effort and time, while still ensuring compliance.

Automation can be applied to client data to aggregate and analyse bank accounts, investments and pensions, as well as to automate client risk profiling. Additionally, portfolio rebalancing processes can be automated to monitor performance, trigger alerts and execute trades based on predefined criteria that are aligned with goals and risk profiles of clients.

Automated customised reports providing insights into investment performance, asset allocation and progress towards financial goals can be generated for clients, providing customers with a bespoke and personalised service as well as contributing to the data required for reporting back to the Financial Conduct Authority as part of their Consumer Duty regime, in force from 31 July 2023.

Automation can revolutionise the way clients are charged based on the value of assets under advice. By leveraging application programming interfaces (APIs), charges can be calculated and delivered in near real-time, eliminating the need for manual and time-consuming processes to determine the total fund value at a specific moment. This streamlined approach offers greater efficiency, accuracy of fees and convenience for both advisers and clients alike.

Communication and marketing

Evolving client expectations, driven by advancements in technology, have created an expectation for an accessible digital interaction with a financial adviser, while simultaneously maintaining a personal touch. Automation is used within the industry to streamline client communication and engagement, such as sending regular updates, newsletters and personalised notifications, or offering a ‘chatbot’ service.

Workflow

Advisers can automate tasks, such as reconciling transactions, managing fees, streamlining billing processes and other administrative responsibilities, which free up time to allow them to focus on tasks that add value to their clients. Automating these tasks can reduce the requirement for administrative staff, while also minimising errors and improving accuracy in financial calculations.

Reporting and compliance

Cutting-edge compliance monitoring tools play a pivotal role in tracking and auditing regulatory compliance by constantly flagging issues, operating 24/7. These tools are designed to enforce adherence to regulations, thereby minimising risks associated with compliance. As a result, employees are relieved of a substantial burden in performing compliance tasks.

Conclusion

Despite only approximately 8% (4.1m) of all UK adults having received financial advice, the FCA wants to make investment advice much more accessible, leading to a rise in demand. Automation can significantly enhance efficiency and scalability for IFAs and, with the evolving customer expectations, IFAs need to adapt and leverage technology to enhance their services and remain competitive. Moreover, automation can also make previously underserviced markets more attractive because the client advice cost is reduced. As with any digital transformation, it is important to consider the risks that come with implementing new technologies, such as regulatory compliance, data privacy and security and cyber risk. It is crucial that there is a clear understanding of the tools used for automation to ensure effective control and compliance, particularly where the technology is outsourced.

The rise of automation, particularly with generative artificial intelligence, is set to transform the IFA space. While emotional understanding and personalised client service have traditionally been seen as crucial aspects of financial advising, technological advancements offer opportunities to maintain a human touch and build strong client relationships.

Erin Sims – Financial Services Senior Analyst, RSM UK

RSMUK.COM

Do We Work To Be Happy Or Rich?

Posted on August 2, 2023May 16, 2025 by Chris Budd

Have we got our approach to work the wrong way round? I know I did.

When my parents and teachers asked me what degree I wanted to study at university, I had no idea.

The next question was ‘What are you good at?’ My Dad pushed me towards accountancy, because all the accountants he knew were wealthy. We compromised on Economics. I absolutely hated it.

At no point when trying to decide what I was going to spend the rest of my life doing in the working day did anyone ask me: ‘What do you enjoy?’

I was reminded of this recently when I saw the following tweet from American marketeer Prof Scott Galloway:

“If you’re going to ‘follow your passion,’ you’re likely to end up in an overcrowded field & have less ROI. Follow not your passion but your talent.”

I was struck by this tweet, the message of which is that you should go for a career that will make you the most money, irrespective of whether or not you will be happy in your work.

What Is Your Job Worth?

How much should we be paid? Let’s start by assuming that there is a minimum amount that everyone should be paid simply for their time. This is called a minimum wage, and, for adults over 23 in the UK, is currently £10.42 ph (equal to an annual salary of around £18,000).

Wage increases beyond this level are then influenced by a number of factors, based on the rules of supply and demand. This will include issues such as qualifications, risk, and unpleasantness.

If a job offers great meaning and purpose, more people will want to do it. Therefore, the pay goes down.

This is why nurses are so badly paid compared to investment bankers. It’s why nurses are so reluctant to strike (because they care so much about their jobs) and why investment bankers don’t need to (Check out David Graeber’s book Bullshit Jobs for more on this.)

Happy Or Rich, or Happy And Rich?

Now let’s look at the other side of the equation. Professor Galloway’s tweet is built on the assumption that we should all try and earn as much money as we can, sacrificing enjoyment and meaning along the way.

Research (and religion, and psychology) tells us that a person who sees money as an objective will be less happy than they would otherwise have been. I have worked with many wealthy people who have achieved their financial goals, only to realise that they haven’t stopped to consider what their wealth is actually for.

Absolute Advice

And this is why Professor Galloway’s assertion is, I believe, not only wrong, but dangerous. His tweet may well resonate for some people for whom it is entirely correct. It may also resonate for some people for whom it is entirely incorrect, yet they might still follow his ‘advice’.

As the saying goes, free advice is worth every penny you pay for it.

What people should do, in my view, is to seek advice from a financial adviser who will base their financial plan around what makes them happy, not just what makes them rich. It means an adviser who will advise the person, not just the money.

Financial Wellbeing For The Adviser

This is financial wellbeing in practice. It is about taking the time to understand the four cornerstones of the relationship between money and happiness:

What brings everyone wellbeing
What brings each individual wellbeing
The barriers to wellbeing affecting everyone
The barriers to wellbeing unique to each individual

By taking time to understand how these interplay for each client, advisers can ensure that they have their relationship between work and money the right way round. But there’s a bonus – advisers I know who have taken the time to understand financial wellbeing are far more happy and fulfilled in their own jobs.

Chris Budd’s new book, The Four Cornerstones Of Financial Wellbeing, is out now. If you’d like to learn more about financial wellbeing, join the Institute for Financial Wellbeing, and maybe take the Financial Wellbeing Certificate.

PIMFA Roundtable: Wealth Management Industry – How to Achieve Long-Term Growth and Profitability? Simplify, Scale and Serve

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July 31, 2023

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Consumer Duty Implementation: Creating Clarity and Alignment to Maximise Outcomes

The deadline for implementing the consumer duty has passed, but there’s still work to be done embedding it into BAU. Paul Scott, Managing Director of PIMFA associate member Square4, shares his thoughts on the audience poll results from our most recent consumer duty webinar before outlining how PIMFA member firms can clarify and prioritise their day 2 activities.

CASS: Crush Your Next Audit Not Your Budget

Let’s face it, all firms want to crush their next CASS Audit, addressing any gaps in their systems and processes in time for their firm’s formal CASS audit, but actually achieving these goals can sometimes be a different story.

Disclosures – a Genuine and Generational Opportunity

Posted on July 15, 2023April 30, 2025 by Nigel Ross-Scott

What has become clear since we left is that, regardless of one’s views on that decision, there are very real opportunities for the reform of retail financial services, given that a large proportion of the rules which govern this sector have been on-shored from EU derived law.

Since 2016 we, along with many in the industry, have felt some frustration with what we considered to be an absence of vision about what the UK’s post Brexit financial services system looked like. The announcement of the Edinburgh Reforms addressed this frustration, with the government setting out an ambitious vision for where radical changes could be made in the system.

Six months on from this announcement, some of these concerns have returned. In the intervening period we have had a number of interesting discussion papers suggesting a desire to make radical change and our overwhelming feeling is that these discussion papers have focused on looking for problems rather than setting out clear proposals for reform.

One of the areas where problems were well known and understood was our disclosure regime. The demise of the Packaged Retail and Insurance-based Investment Products (PRIIPs) regime, which PIMFA has been critical of since it came into effect, is greatly welcome, albeit with the caveat that it still unclear what will replace it in the long run. But we strongly believe that there is a greater prize to be won here: wholesale reform of the disclosures regime, which needs to be considerably simplified.

We need to return to first principles to truly come to a conclusion of what disclosure is really for. If it’s to engage the client, then we need to design a regime which is ultimately rooted in that principle. If we want to educate the client, the same principle applies. What we cannot do is look to design a new disclosure framework which seeks to be all things to all people. If we do this, we run the risk of reinventing the PRIIPs regime, not improving it.

PRIIPs was overly complex and confusing, comparing the characteristics of a vast range of products through a single document. The complexity of KIDs, and the language used within them, had a negative impact on retail investor sentiment, putting investors off buying certain investment products, particularly retail bonds.

We believe that in reforming our disclosure regime, there should be six building blocks that government and the regulator should consider and build a regime around. We need to:

Recognise low levels of consumer engagement and financial literacy in the UK
Focus disclosure information on mass market products
Take advised businesses out of a future disclosure regime
Develop “headline” disclosures that use straightforward language
Launch a broad review of all retail disclosure rules
Create a central retail disclosure sourcebook in the FCA Handbook

Whilst the government’s vision on the Edinburgh Reforms is to be applauded, one is entitled to be sceptical about the possibility for radical change given the breadth of proposed reform, the timelines envisioned and, crucially, their action to date. Looking again at the provision of financial information to consumers is the one area where wholesale reform is not only needed but presents policymakers with a genuine and generational opportunity to engage with and empower more people.

The Government and the FCA must engage with industry on this issue as we work to create the culture of saving and investing in the UK which we all want to see.

Webinar: The Financial Crime Risk Landscape in Russia

We have published our Russia financial crime risk report, the latest in Themis’ series of country risk reports which explore the financial crime landscape in different jurisdictions. The report details the risks that Russia poses to the global financial system, exploring the extent of sanctions evasion, money laundering and predicate offences that originate in the country and impact other economies globally.

We have convened a webinar with a panel of experts to discuss the report’s findings and promote discussion about what should be done by businesses in the financial services industry and beyond to protect themselves from Russia-related risk. We are privileged to be joined by the following speakers:

• Valeriya Melnichuk – Vice President, Highgate
• Henry Williams – Head of Investigations, Themis
• Olga Lautman – Senior Fellow, Center for European Policy Analysis and Senior Investigative Researcher, IEI: Institute for European Integrity
• Stephen Rae – Chair and Publisher, AML Intelligence
• Matei Rosca – Reporter and Owner, Reporter.London, ex-Politico and S&P Global Market Intelligence.

The webinar will take place at 12.30-1.30pm BST on Thursday 6th July and registration is open to all. All those who register will also receive a free copy of the Russia financial crime risk report ahead of the event.

Finance Magnates London Summit – FMLS:23

The Finance Magnates London Summit FMLS:23 is the year’s most exclusive and premium event. This outstanding event is specialised particularly for the fintech, payments, digital assets, and online trading industries, and will take place from November 20th to 22nd, 2023, at the famous Old Billingsgate in London.

2.5 days of unequalled networking and knowledge-sharing possibilities. With a historic attendance of 3500+ industry experts, this is your chance to network with the financial world’s top. Engage with over 150 eminent speakers who are at the forefront of their disciplines, delivering essential insights into the current trends and strategies.

Indulge in a premium exhibition with 150+ exhibitors, where you’ll discover cutting-edge innovations, special products, and services. Network with industry pioneers, investors, and innovators to forge connections that can propel your business to new heights.

Join us in the Old Billingsgate in London from November 20th to 22nd, 2023, for an elite and premium event that will shape the future of finance.

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Bringing Consumer Duty Home: Three Final Steps Before the Deadline

Posted on June 27, 2023May 16, 2025 by Matt Neill

Where does the time go? Summer is upon us, and the 31st July deadline for implementing the Consumer Duty is barely a month away.

In a recent straw poll of PIMFA members, it was good to see that 57% were confident that they would be compliant by the deadline – but on the flipside almost half were concerned to some degree that they would not be compliant.

If you find yourself in this position, you may think that there is little you can do to change what can and can’t be delivered by the deadline. But all is not lost.

There is still time to review your plans and refocus on the changes that will really matter to customers, and that will ensure your compliance with the regulations. Effective prioritisation and careful planning, even at a late stage, are often crucial factors in assuring timely delivery of new activities, processes and outputs, and whether they take root successfully across an organisation.

Now is the time to step back and ask yourself some important questions such as:

What actions are needed to ensure that the most important items in your plans are successfully delivered?
How can you ensure that changes are incorporated effectively and smoothly into ‘business as usual’?
What gaps do you have and how might they be addressed prior to the deadline or shortly afterwards?

What are the FCA’s priorities?

Let’s remind ourselves of the priorities highlighted by the FCA in recent months. Broadly these can be summarised as:

The FCA will take a pragmatic approach, targeting the products and services which pose the biggest risks to customer harm, and prioritising serious breaches;
Firms should focus on key areas the FCA has highlighted in its reviews and speeches where implementation is not meeting expectations;
Firms are expected to understand and evidence the outcomes their customers are experiencing. They need to ensure they are making material changes and not relying too heavily on existing systems, data or processes; and
Consumer Duty is a major culture shift for firms (and the FCA). The new rules are about putting the customer first and embedding this mindset through your organisation from the board downwards.

Keep these points in mind as we step back and review our Consumer Duty deliverability with a few weeks to go.

1. Assess your current position

The first step is to honestly assess where you are today, and how confident you are that you will be materially compliant with the regulatory requirements by the deadline. Think about whether your products or services could cause harm or risk of harm to your customers.

Are there any significant weaknesses in your current approach? Have you appropriately addressed these in your plan, and if not, can they be addressed before the deadline? Otherwise, you must plan to address them afterwards.

The FCA expect Consumer Duty to drive genuine improvements, so it is worth asking whether the changes in your organisation are material. For example, have you changed the pricing of any of your products? Have you had to withdraw or substantially redesign any products, or changed the way they are communicated or distributed?

If the impact of Consumer Dity has been minimal, you need to be confident that you can justify why that is. If you’re using only existing data for your measurements, you need to be clear on why that is appropriate and how all aspects of Consumer duty are covered.

2. Review your action plan

The next step is to review your action plan and close down any areas of concern. Check that all of the following are in place:

The scope and prioritisation of activities within the remaining weeks are still appropriate;
Sufficient people are engaged with the project, and they have the skills and experience to see it through;
Budget is in place to complete the work and continue with the next phase of the plan if there is one;
There is robust project governance in place, you have clear evidence and audit trails, ownership of responsibilities is clear including how you will perform ongoing monitoring and controls; and
There is an agreed closure process and clear ‘definition of done’ for each major deliverable in the plan.

3. Crossing the finish line

The last important thing you need to think about prior to the deadline is business readiness and embedding any new procedures or project outputs.

People or teams that need to change how they work after the deadline need to be thoroughly briefed and ready to adopt the new ways of working if they are not already doing so. Be sure to address any concerns or questions that they may have.

Involve key stakeholders throughout the change process and particularly in the final stages of implementation. Ensure that all the final boxes have been ticked and everyone is comfortable to go live.

Your Consumer Duty programme is likely to have resulted in numerous changes to your firm’s activities and processes, so make sure that these changes are captured, documented and evidenced at the right level of detail – for example, why decisions were taken, what the new procedures are, who signed them off, any supporting evidence, and so on. This information needs to be easily accessible should you ever have to explain or review your thinking.

Time is short, but by taking a few hours to review your priorities at this stage, your likelihood of achieving compliance by the Consumer Duty deadline will improve, and the odds of last-minute disasters will be reduced.

Matt Neil – Partner, Beyond

Matt has over 15 years’ consultancy experience helping financial services clients navigate complex transformation and the ever-changing regulatory landscape, working with operations, compliance and technology leaders to deliver their critical initiatives.

If you would like an external perspective on your firm’s preparedness for Consumer Duty, specialist consultancy Beyond are offering a free no-obligation Consumer Duty Readiness review to PIMFA members which will typically take around 90 minutes. To request a review, please email robin.sapherson@beyondfs.co.uk and they will get in touch.

June 25, 2023

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MITIGO Cybersecurity | No Room for Complacency in Cybersecurity

When it comes to cybersecurity, “there’s no room for complacency” reasons Mitigo’s Kerrie Machin in his message for PIMFA member firms. Wealth Managers and Financial Advisory firms are prime targets for cybercriminals who prey on a firm’s lack of vigilance and rely far too heavily on their IT provider to offer the cyber protection the FCA and ICO expect your firm to have in place.

LGBTQ+ clients – A Safe Space Webinar to help with their financial needs

This webinar has been created to help those concerned with saying the wrong thing when working with LGBTQ+ clients. We all know an LGBTQ+ client is the same as any other but for some, human fear kicks in (unintentionally) and you may feel you’ve said the wrong thing which in turn creates an uncomfortable situation for all when no one means too.

So, at 10am on the 22nd June, we have a safe space for all advisers and support staff to join and just hear from others who have felt the same, hear from advisers on how to support LGBTQ+ community with their financial neds in the same way as anyone else and most importantly a place for Q&A.

This year, we’ve gone one step further and collaborating with our Industry Peers, so alongside The Openwork Partnership, we have friends from SJP and possibly one other network joining us.

To register click here

Setul Mehta
The Openwork Partnership

Clarity Is Needed In Our Drive Towards Net Zero

Posted on June 8, 2023April 30, 2025 by Nigel Ross-Scott

The Government recently published its green finance strategy, setting out its ambition to reinforce and expand the UK as a world leader on green finance and investment. Not long before this, the Labour Party outlined its 5 missions for Britain, placing the same objectives at the heart of its plans for the UK economy.

PIMFA supports both of these aims. Whilst there are some who may disagree with the final destination – net zero – it is clear to me that in order to adapt and sustain the next stage of economic and industrial progression, we will have to focus on securing growth in a way that is more considerate of the environment around us than has previously been the case.

Whilst these initiatives were welcome, they were, in my view, lacking. There are 4 mentions of the word ‘retail’ across the document – none of which relate to the role retail investors can play in driving towards net zero, which continues to be overlooked.

Chronology may be an important factor in this. The FCA has only recently begun thinking about what ESG means for retail, as we’ve seen in their recent consultation on Sustainable Disclosure Requirements (SDR), whilst our own member engagement has shown that it is the need for clarity and articulation of expectations which continues to shine through, as well as consideration of the potential unintended consequences of this proposed regulation.

In conjunction with associate members Alpha FMC, we will shortly be publishing a new piece of research providing clarity on where our industry currently stands on this issue. This finds that the proliferation of ESG definitions and interchangeable language used throughout financial services has undoubtedly caused confusion for clients.

This is supported by the FCA’s qualitative consumer research, documented in their recent SDR consultation, which found that ‘the terminology used in sustainable investing was not always intuitively understood’.

Our survey reveals that firms are finding it difficult to provide consistency to clients. For example, one survey respondent noted that “Wealth Managers are responsible for telling clients what ESG means” but we note that the FCA-proposed naming and marketing regime within their consultation is an initial attempt to address this issue.

However, whilst limiting the use of certain terms may help to prevent potential mis-selling of sustainable products, there is still a need to tackle client comprehension on this topic and seek some standardisation in the terms relayed in marketing materials. These challenges, and the subsequent impact on educating clients about ESG, may help explain firms previously-referenced inability to identify specific facets of ESG investing that they feel are of the most importance to their clients.

The picture being painted here, is one whereby firms are finding it challenging to report to and educate clients around ESG investing and do not necessarily have the regulatory clarity they need to have full confidence in their approach. This is a shame, and to the points made above, a potential opportunity missed.

One way or another, I strongly believe that the private capital of retail investors should be a central pillar in moves from any future government to rebuild, refocus and rebalance our economy. The opportunity has been laid out in no uncertain terms to the institutional market but what it means for retail investors is still unclear. As above, this may be a function of chronology – the retail market is not as developed as the institutional market. But again, I return to the absence of clarity we have in comparison to our institutional colleagues.

By giving the advice sector and D2C sector the tools that it needs to both manufacture and distribute products to retail investors, government and the regulator have the opportunity to supercharge the drive towards net zero. There are of course other considerations for us to take account of – and I will no doubt return to these in future – but by ignoring the role of retail altogether what promises to be a bright and exciting future could become a huge opportunity lost.

Strong communication cuts through complexity and delivers greater value

Posted on May 31, 2023May 1, 2025 by Danny Baggs

What’s contributing to complexity?

At the beginning of the year, I helped put together an outlook for the wealth industry, and it’s true that the once rock-solid status quo has changed in borderline innumerable ways. While far from exhaustive, we can group them into three loose categories.

1. Demographic changes

Some of it, such as the great wealth transfer, was easily predictable – although the scale of the shift is still a force to be reckoned with. By 2060, Capgemini predicts that around $60 trillion will have moved to younger generations, along with other influential demographic shifts.

2. Global and geopolitical trends

Other shifts towards complexity were less easy to foresee. The global pandemic and outbreak of geopolitical tensions in Eastern Europe have ongoing repercussions that we’ll feel for years to come.

3. Technological advancements

Then we need to contend with the technological aspect. Just as we don’t notice the speed of the world’s rotation, it can be easy to forget the lightning pace with which everything is changing whilst immersed in our day-to-day lives. Yet it is changing. Fintech, cryptocurrencies, mass affluent markets, cybersecurity, digital service experiences – there aren’t enough fingers on two hands to count the distinct ways it affects us.

The role of communication

My point is not that complexity isn’t present in today’s wealth landscape. It’s that the conditions that are contributing to this complexity also help us to navigate it. In short, delivering value amidst complexity is a question of communication. Technology helps communication both directly and indirectly.

Indirect communication benefits

The indirect benefits are largely to do with boosting efficiency, freeing up advisors to spend more time on client interactions. Mobile financial applications have become essential for a reported 46% of investors according to Refinitiv’s Wealth Management Report – a statistic that rises to 72% when you only consider millennials. Likewise, technology helps streamline onboarding processes, helping with everything from prospecting to identity verification, KYC, AML and due diligence checks.

Direct communication benefits

With less time spent on unavoidable processes, advisors can focus on direct client communication through conversational engagement. This is where technology shines as a vehicle to navigate complexity.

Conversational engagement refers to an advisor’s ability to provide superior support during every interaction and on every touchpoint. Take Unblu’s Secure Messenger for example, which offers a WhatsApp-like experience without risking security or falling foul of regulatory compliance. Client conversations can take place over time in a natural manner, ensuring that any questions, doubts, or concerns can be fully addressed.

In their 2023 EY Global Wealth Management Research Report, EY cuts to the heart of the issue saying, ‘Personalised advice and engagement, especially at key milestones, is crucial to helping more clients fulfil their financial aspirations.’

Yes, the world has become more complex. But strong communication, driven by conversational engagement, can help navigate complexity and deliver greater value for your clients.

Danny Baggs is Director of Marketing UK at Unblu. Danny writes about the insights and trends set to define the wealth management industry.

Social media: linkedin.com/in/dannybaggs

Discover more insights into the current wealth management landscape by downloading Unblu’s 2023 Digital Wealth Management Outlook.

PIMFA: The True Value of the Collective Voice

Posted on May 25, 2023April 30, 2025 by Nigel Ross-Scott

The wealth management and financial advice industry in the UK is second only to that of the US in terms of assets under management. We have considerable reach up and down the country to all types of personal investors. Consequently, when we as an industry speak with one voice, the Government and Regulator cannot ignore what we say. There are always conversations to be had with policymakers and regulators and there is always a need to move forward, innovate and to stay focused on building an industry fit for the future. This is why it is vital to support any campaign that helps promote our industry and it is why PIMFA is lending its support FT Adviser’s Promote Your Profession campaign.

Making our industry fit for the future involves negotiating changes to legislation and regulation with the Government and Financial Conduct Authority (FCA). But it also means looking at what we as an industry can do to make improvements, promote our sector as a great place to work, a force for good and ensure that we are doing all we can to serve our clients in the best way possible.

There are many ways in which our industry speaking with one, unified voice has achieved reform. In the last year alone, we have won meaningful concessions from the FCA on the Financial Services Compensation Scheme (FSCS) levy including the Regulator publicly conceding that the levy is unsustainably high and that a new funding model is required. We are continuing to work with the FCA on what that might look like and you will have seen our calls for FCA fines to be used to subsidise the levy. This fits with our call for a polluter pays model, at least in the short term, while a longer-term solution is developed in partnership with the industry.

PIMFA, along with 17 other trade associations, charities and consumer groups including UK Finance and Which?, has also won concessions from the Government in terms of the Online Safety Bill, which was introduced to the House of Commons in March 2022 and included fraud as a priority harm as a direct result of our campaigning work with our partners. The Online Safety Bill is continuing its progress through Parliament and should become law before the end of the year, helping to protect millions of our clients from fraud.

Last year, the FCA banned firms ‘phoenixing’ into Claims Management Companies, an issue PIMFA has campaigned on for a number of years. The FCA also agreed to lengthen the timeframe for implementation of the Consumer Duty as a direct result of PIMFA’s campaign work, whilst we have been providing information to firms to help them prepare in advance of the implementation deadline.

Mini-bonds were brought inside the regulatory perimeter in 2022 following several years of campaigning by PIMFA. We also put forward proposals for a Simplified Advice regime, which prompted the FCA to consider its own proposals for a core investment advice regime and we were pleased to see the 10% depreciation rule repealed following our representations to the Regulator.

Finally, the Packaged Retail Investment and Insurance Products (PRIIPs) regime was also repealed as part of the Government’s Edinburgh Reforms, something PIMFA has campaigned for since its introduction six years ago. We have already put forward proposals to replace it with a simplified disclosure regime.

PIMFA was the only trade association to give evidence to MPs at the House of Commons Public Accounts Committee investigating the British Steel Pension Scheme Scandal, while we also gave evidence to MPs scrutinising the Online Safety Bill, demonstrating the impact of the work we have undertaken in the past few years and the seriousness with which policymakers take our views.

But we, as an industry, must also take a lead in driving change too. This is why PIMFA launched our WealthTech platform last year, as part of our ongoing commitment to drive digital innovation in the wealth management industry. Then, as part of our initiative to promote our industry as a great place to work, we launched our ‘Make.It’ campaign to improve diversity and inclusion in the industry, providing firms with a recruitment pack to help them attract new talent into the sector. This after we had already launched our Diversity & Inclusion Awards to help highlight the great work already being undertaken by the industry.

But there is always more we can all be doing to get support from the Government and our Regulator, which is why we are happy to support FT Adviser’s new campaign. We look forward to working with the campaign and continuing to speak with the one collective voice that we know from experience achieves the change we want to see.

We would encourage all firms to get involved and also to come and speak to the PIMFA team. We’re here to help you and to fight for the things you need. That way, you can concentrate on doing what you do best: serving your clients.

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