The morning briefing: towards a single pension regulator

Hello and welcome to your Morning Briefing on Friday, June 10, 2022. To receive it each morning in your inbox, click here.


Simplify pensions

There is a theory that it is easier to serve one master than two.

Rachel Vahey, senior technical consultant at AJ Bell, makes a strong case for the need for a single pension regulator.

It envisages the Financial Conduct Authority focusing on defined contribution schemes and the pension regulator dealing with defined benefit schemes.


FSCS Defaults

Are birdwatchers close followers of the Financial Services Compensation Scheme (FSCS) default list?

Maybe and the bailout fund confirmed 11 companies in default.

This means consumers can now see if businesses owe them money and if they are protected by the bailout fund.


A difficult complacency

We worked hard at the Money Marketing Retirement Summit and our reporter Momodou Musa Touray got this story yesterday (June 9).

He covered a panel that said advisors need to do more to challenge current thinking about multi-asset portfolios during the time of savings accumulation.



quote of the day

In reality, with spiraling inflation and rising interest rates, lenders are likely to tighten affordability criteria rather than soften their approach to lending. This is unlikely to change just because the Prime Minister says he wants it to.

– Tom Selby, personal finance expert and head of pension policy at AJ Bell, comments on Boris Johnson’s plans designed to help low-income households gain access to property



Stat Attack

Canada Life customer data revealed that 14% of claims in the first quarter came from customers looking to meet their daily living expenses.

12%

Requests have also been made to consolidate unsecured debts.

36%

of inquiries in the first quarter were from customers looking to pay off the remainder of their mortgage

A quarter

Freed up equity for this purpose to make home improvements in Q1

ten%

Customers also continued to use the equity release to make large one-time purchases such as booking vacations

9%

To buy a new property

8%

To buy a car

Source: Canada Life



In other news

Pacific Asset Management has announced the launch of the Pacific North of South EM Equity Income Opportunities Fund.

The portfolio will be managed by Matthew Linsey, Kamil Dimmich and Robert Holmes.

The Irish UCITS fund will invest in 50-60 emerging market stocks of all market capitalizations.

The fund’s gross forward yield is estimated at more than 8%.

With this new fund, the team is targeting mature, well-managed companies in countries with low currency volatility.

Fund managers will seek high yield from a relatively concentrated portfolio of companies selected for their sustainable dividend characteristics and ability to grow at least in line with inflation.



By the way

Owner abandons pub as quarterly energy bills approach £30,000 (BBC News)

Sunak accused of losing £11bn in UK government debt servicing (Financial Times)

Anti-money laundering proposals ‘uninspired and vapid’, say MPs (The Guardian)


Have you seen?

Tom Baigrie is one of the great champions of protection and works tirelessly to promote it.

His latest column makes a case for this and he writes, “Recently I found an incentive that could encourage your business plan to once again include protection and turn the tide.”


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