The Morning Briefing: New Advice Business Launch and Lack of Consumer Duty Awareness

Welcome to your Morning Briefing for Thursday 24 August 2023. In today’s briefing, we will be discussing the launch of a new advice business, Phoenix customer service’s lack of awareness of the Consumer Duty, and the importance of clients having a firm retirement date. Read on to find out more.

New Advice Business Launches

Former First Wealth financial planners, Scott Millar, Rob Schwarz, and Rob Bell, have recently set up their own advice firm called Finova Money. The firm will operate on a subscription-based model and offer three different tiers of service to cater to the needs of a diverse range of clients. The co-founders hope that their new business will be able to serve the next generation of clients.

Phoenix Customer Service ‘Unaware of Consumer Duty’

A customer of the Phoenix Group has claimed that the company’s customer service team had never heard of the Consumer Duty when they complained about service levels and demanded good customer outcomes. While the Phoenix Group has stated that it has delivered training on the Consumer Duty to its senior staff, the customer’s experience raises concerns about the company’s understanding and implementation of the new duty.

Do Clients Need a Firm Retirement Date?

Amanda Newman Smith, a features writer, raises an interesting question about retirement planning. She asks whether clients need to have a firm idea of when they want to retire in order for advisers to effectively build a retirement plan. Without a specific retirement date, planning for retirement becomes more challenging. The article explores the complexities of planning when a client is unsure about their retirement date and discusses the importance of discussing this aspect of retirement with clients.

Quote of the Day

“The interest rate medicine is working but with unfortunate side effects of a sharp drop in economic activity, and expectations are rising that mild recession is on the way.” – Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Stat Attack

– Nearly half of parents with children at private schools rely on family help to afford the fees.
– Grandparents are the biggest source of funding for private school fees.
– Parents find it difficult to pay fees and often have to make cutbacks and sacrifices to afford them.
– Paying for their children’s private school education has delayed retirement plans for many parents.

Related Facts

– Finova Money, the new advice business, aims to serve the next generation of clients.
– The Phoenix Group has claimed to have provided training on the Consumer Duty to its senior staff.
– The lack of awareness of the Consumer Duty raises concerns about the company’s commitment to good customer outcomes.
– Planning for retirement becomes more challenging when clients do not have a firm idea of their retirement date.
– Private school fees put significant financial pressure on parents, leading to cutbacks and sacrifices in other areas of their lives.

Key Takeaway

The launch of Finova Money highlights the growth and innovation within the financial advice industry and the need for tailored advice for different generations of clients. The lack of awareness of the Consumer Duty by Phoenix Group’s customer service team raises concerns about the company’s commitment to good customer outcomes. The question of whether clients need a firm retirement date emphasizes the importance of open and honest communication between clients and advisers for effective retirement planning.

Conclusion

The financial services industry continues to evolve with the launch of new advice businesses like Finova Money. However, challenges remain, such as the need for improved awareness and implementation of regulatory requirements like the Consumer Duty. Clients also need to actively engage in retirement planning by considering a specific retirement date to ensure a well-structured and effective retirement plan. The Morning Briefing aims to provide valuable insights into these important topics and keep you informed about the latest developments in the industry.