The Morning Briefing: Why FCA Needs More Staff and EIS Fundraising


Hello and welcome to your Morning Briefing on Wednesday, May 18, 2022. To receive it each morning in your inbox, click here.


FCA workforce

Experts say the Financial Conduct Authority needs to bolster its authorizations team to successfully introduce new application fees.

Maddie Delboy, Head of Regulatory Support at Apricity, said Money Marketing that the decision to increase the fees is right.

Still, she thinks the regulator will need to grow its permissions team.


Raising capital for SMEs

The Business Investment Program (EIS) can be a way for businesses to raise funds to grow.

Companies using EIS have grown from 2,965 in 2019/20 to 3,245 in 2020/21 according to private equity firm Growthdeck.

The private equity firm believes that the increase in the number of SMEs seeking to raise funds through EIS shows that enthusiasm for capital fundraising among small businesses is growing.

But others ask, given that the UK is no longer in the EU, why isn’t it using the flexibility to diverge?


AE missed opportunity

Automatic enrollment has been hailed as one of the most successful policy interventions since 2000.

It dramatically increased the number of people saving in a pension.

But a former pensions minister, Baroness Ros Altmann, laments that she could have done so much more.



quote of the day

The fact is that only a minority of people feel confident in making their own investment decisions. We all need advice of one kind or another, whether it’s basic and triage advice on how to start investing or saving in a pension, or more complex advice in areas such as estate planning.

– Simon Binney, Director of Business Development at Wealth Wizards, comments on the need for a human touch in the advisory process



Stat Attack

New research from Boring Money shows a clear preference among clients for more flexible advisory models to meet a wide range of needs and preferences. He finds :

20%

Advised customers also use a D2C platform

28%

Of all the clients advised today, cite a preference for a one-time needs-based advice model, over

45%

Who prefer the ongoing holistic guidance they receive today

42%

Of advised clients today prefer a traditional face-to-face model to a hybrid advisory model

Source: Boring Money



In other news

Janus Henderson Investors has appointed Panos Nikopolitidis as head of operations. He replaces Graham Foggin who is retiring at the end of June after 20 years with Janus Henderson.

Nikopolitidis will be based in London and will report to Chief Operating Officer, JR Lowry.

He will be responsible for operations strategy, fund administration, investment operations, client operations, investment monitoring, oversight of third-party administrators, and performance and client reporting.

Nikopolitidis will also be a member of Janus Henderson’s executive committee.

He joins Janus Henderson from Russell Investments where he had been responsible for global investment and data operations since 2017.


St. James’s Place (SJP) has announced changes to its fund lineup. This is part of the company’s long-term investment strategy to create asset class building blocks, improve the consistency of returns and the long-term performance of its funds.

For global growth, SJP will change the lineup of managers with the appointment of Axiom Investors, WCM Investment Management and Artisan Partners. They will manage the fund alongside existing managers Edgepoint and Sands Capital.

SJP will also seek to improve flexibility and liquidity by moving from a fund-of-funds structure to a direct investment structure.

With respect to emerging market equities, SJP changes the investment objective and policy. He is moving from a single-manager strategy to a multi-manager strategy.

With this approach, SJP hopes to increase diversification and reduce manager-specific risk.

As a result, it appointed Lazard Asset Management, ARGA Investment Management and Somerset Capital Management to help provide a more diversified source of returns.

They will also complement the growth strategy of the current fund manager Wasatch Advisors.

The changes will come into effect on July 25, 2022.



Moreover

UK inflation hits 40-year high at 9% (Financial Times)

Covid support schemes left ‘open target’ for scammers, says watchdog (The Guardian)

Top hedge funds invested in Twitter before Musk unveiled his plans (Reuters)


Have you seen?

Editor Katey Pigden got an interesting update on Nucleus yesterday (May 17).

Money Marketing understands it will change the way it pays interest on cash held on the James Hay and Nucleus platforms in a bid to provide a “clear and fair” approach.

The platform group says its newly created treasury function aims to generate “significantly better” returns for clients.

While customers are generally not encouraged to hold a lot of cash on platforms, providers tend to take different approaches to how they handle interest on operational cash.

Some platforms pass zero interest to customers, some give customers everything, and some do something in between.

Previous Introducing capital gains tax could discourage investors—Popoola
Next Experts will discuss ways to strengthen the West African capital market