OK, this might sound a bit financial-adviser-nerdy, but is a reminder that the Law of Unexpected Consequences should always be expected when brave new policies are introduced. Our regulator introduced something called ‘Consumer Duty’ last year, which required both advisers and providers to review their businesses and ensure they have ‘a clearly defined target market’ for whom their products and services ‘represent fair value’. Many as a result have decided that they can’t be all things to all types of clients and that they should perhaps focus on fewer and charge accordingly for the service provided. Which means the much discussed ‘advice gap’ widens, and is likely to continue to widen, still further. Another trade press headline this week: ‘Adviser exodus looms with half planning to retire in next five years’. To paraphrase a memory of a previous election, things don’t, necessarily, always get better.
“Pensions minister: ‘we have created saving pots, but not a pension system’”
The OBR (Office of Budget Responsibility, as opposed to the OBI, often said to be housed in No.11) said this week that pensions were one of the biggest problems to be faced by this and future governments.
