Written by Charlie Rae, partner in law firm TLT’s employment team

On 26 October 2024, a new law will come into force which places a duty on employers to take reasonable steps to prevent the sexual harassment of their workers in the course of their employment. 

Sexual harassment is conduct of a sexual nature which has the purpose or effect of violating a worker’s dignity or creating for them an intimidating, hostile, degrading, humiliating or offensive environment.  

The new preventative duty requires employers to take reasonable steps to prevent sexual harassment by their own workers as well as by third parties such as clients, contractors, customers, and/or members of the public. 

 Financial advisors who are in employment (or, indeed, are employers themselves) will find their employer must take proactive active steps to anticipate scenarios where their workers may be subject to sexual harassment in the workplace and be proactive to prevent it. Self-employed advisers may see employers they interact with highlighting their expectations of third-party standards of behaviour and may even find they are being asked to sign up to behavioural charters and such like 

The duty will cover acts in the workplace but also any other place where the worker is working, for example attending a training course. It might also include other circumstances where the worker is not working but what they are doing is connected to work, such as after-work team drinks. 

What is a ‘reasonable’ step is expected to vary from employer to employer. Recently published Equality & Human Rights Commission (EHRC) guidance sets out a detailed list of factors that might be relevant, such as the size and resources of the employer, or whether steps already taken have been effective or ineffective.  

Some of the preparatory steps we are seeing employers take, include preparing a bespoke risk assessment, reviewing and updating existing policies and procedures, delivering training courses for staff and managers, setting up anonymous reporting channels, and making and keeping under review a record of all reported incidents of sexual harassment. 

For employers who fail in the new duty, the EHRC has the power to take enforcement action against the employer, in many cases this may arise from workers who report concerns directly to the EHRC. In addition, where an employee succeeds in a Tribunal claim for sexual harassment and is awarded compensation, the Tribunal can uplift that compensation by up to 25% if it considers the employer has not complied with the duty. However, an employee will not have a standalone claim for breach of the duty by an employer. 

It’s worth noting that the Labour Government is proposing to raise the bar on these new changes even higher for employers. Whilst some commentators have criticised the forthcoming changes as being too light on the enforcement options, it’s an obligation that employers will need to take seriously, not least because these duties are only likely to be strengthened in time.  

By Ahmed Bawa, CEO of Rosemount Financial Solutions (IFA) 

Financial advice is not a young industry. Data from the Financial Conduct Authority released a couple of years ago, following a Freedom of Information request, found that just 6% of advisers were aged under 30. By contrast more than one in three were aged between 50 and 59. 

There is a pressing need to address this imbalance too, since many older advisers are actively looking towards the exit. A study from Investec earlier this year suggested that around half of advisers are looking to retire within the next five years. 

It’s already debatable whether we have sufficient numbers of advisers in place to guide clients with their financial decisions, from investments to protection needs, but the fact that adviser ranks could take a further hit by the older cohort moving into retirement will create additional problems. 

If, as an industry, we are going to support the ongoing needs of our clients then it’s evident that we need to bring fresh blood into financial advice. 

Addressing the image problem 

The first question that needs to be addressed is why greater numbers of school leavers and graduates do not look towards financial advice as a potential career. Is it that they are less attracted to the industry? Or do they not even know about it as an option? 

Speak to advisers and most will say it was a job they fell into, so how can we improve the image of financial advice and make sure that it’s something younger people are actively pursuing? 

After all, we all know that financial advice is a fantastic career. Advisers have the chance to build their own business, really take control of their own destiny. Couple that with the ability to be flexible over working hours, to try to find a better work-life balance, the variety of the work and the opportunity to secure a lucrative income, and it’s obvious this should be a career that appeals to greater numbers of people. 

A different way of doing things 

Bringing fresh blood into the industry isn’t just important because of the swathes of older advisers approaching retirement, and who will need replacing. 

No, young advisers are desirable because they can help push the industry to be more innovative. 

Financial services has become more forward-thinking in recent years, with the greater adoption and integration of technology, but that is really only the start. By bringing in new talent, we can ensure that fresh approaches and perspectives are given the opportunity to help the way that we advise develop. 

Let’s be honest, advice firms are far more likely to be able to capitalise on social media and other emerging ways of working with the next generation of clients if they have younger staff not only on their books, but who feel valued enough to come forward with their own ideas and suggestions. 

How we are doing it at Rosemount 

At Rosemount, we are taking a proactive approach to bringing fresh talent into financial advice, looking for ways to get them into the door to begin with. 

A good example of this is our internship programme, through which we have partnered with a host of universities so that we are listed as offering opportunities to students looking for a one-year work placement as part of their studies. 

The programme started last year with one intern, and we have two working with Rosemount this year. These aren’t internships where they are tasked with making the tea, or sitting bored in meetings either – we give them hands-on experience in all areas of the business, from compliance and case checking to risk management and feeding back to advisers. 

It’s only by getting a real taste for what this career can offer that we can attract the next generation of advisers, and the fresh ideas and perspectives they bring with them. 

Breeding excitement 

Both of our current interns are economics students. Joshua Wright had heard about Rosemount, and financial advice more generally, through his older brother who worked for one of Rosemount’s Appointed Representatives. 

He told us that while his friends are doing a lot of admin in their placements, he was given responsibility straight away, with support whenever needed, which has helped build his confidence. 

His fellow intern, Ewan MacBride, worked with a financial services business in his Year 11 work experience. He has also enjoyed the fact that the programme has provided exposure to different aspects of the business and how it operates as a whole. 

I’m thrilled that Rosemount is becoming known for the quality of our internship programme, and it’s something we are committed to continuing. There’s such a benefit to us as a business, as well as the industry as a whole, through having young, enthusiastic people as part of the team. 

I hope that as more students come through, and take positions in financial advice, that they can then become advocates for the career for the next crop of youngsters. 

But as an industry, we need to raise our game in promoting financial advice as a career to young people. It’s not enough to simply raise awareness of advice as a job; we also must ensure there are clear pathways for the advisers of the future to join our ranks.

The Chartered Insurance Institute (CII) is today calling on its members and the wider insurance profession to uphold the highest standards of behaviour following the publication of the FCA’s findings into culture and non-financial misconduct.

The FCA’s survey identifies numerous cases that have the potential to undermine societal trust in the insurance profession. 

The CII requires all its members to adhere to its Code of Ethics, which sets down the principles that they must follow in the course of their professional duties. These include complying with all relevant laws and regulations, acting with the highest ethical standards and integrity and treating all people fairly. The CII can take disciplinary investigation and impose sanctions where its members fall short of its expectations. We also expect our Chartered firms to have in place core values, business practices and a diversity and inclusion policy that align with our Code of Ethics.

Commenting on the results, chief executive of the CII, Matthew Hill, said: “The FCA’s survey results make for uncomfortable reading, but equally highlight an opportunity for our professions to make a real difference. The CII supports what the regulator is seeking to achieve, professions in which everyone can thrive, regardless of their background, and workplaces that are conducive to professional success by eliminating conduct and behaviours that can stifle, harm and obstruct careers. For our part, we will be writing to all our members to remind them of their need to comply with our Code of Ethics, which speaks directly to the outcomes the FCA is seeking to achieve.” 

Alongside its Code of Ethics, the CII’s Professional Map provides a vehicle for individuals working across financial services to better understand and develop the behaviours that build consumer confidence. 

Matthew Hill added: “Our Professional Map is already a valuable tool for many firms, and we would encourage all our members to consider adopting it in order to help develop a positive working culture and to drive good customer outcomes.” 

Following news this week that the FCA is taking action against finfluencers who may be illegally promoting financial products, Sarah Pennells, consumer finance specialist at Royal London, expresses concerns about relying on social media for money management tips. 

“Many money bloggers and finfluencers use social media as a way of sharing information about their personal experience of managing money, and this can resonate with people in a powerful way.  

“Our own research shows that one in four people aged 18-34 had turned to social media for information about their finances in the last two years, and that was second only to the numbers who’d asked friends and family for advice.  

“The problem is that while there is lots of useful information on social media, it can be hard, if not impossible for people to know what’s accurate and what’s incorrect. The bigger concern is that some finfluencers may be promoting financial products when they aren’t authorised or pushing risky investments. 

“Seeking advice from a financial adviser can help you keep your money plans on track. They can help you build a picture of your overall personal financial circumstances and identify and prioritise the areas you should focus on.” 

Ahead of National Pension Tracing Day, this Sunday (27 October), new research from digital wealth manager, Moneyfarm, has found that 29 percent of the nation have no idea how many pension pots they have – believing that they probably have around £13,303 sitting across approximately three ‘lost’ pension plans – yet a whopping 79 percent say they don’t know how to begin tracking them down. 

This echoes figures released today by the Pensions Policy Institute who estimate that as many as 3.29 million pension pots worth £31.1 billion remain unclaimed in the UK.

Having multiple different pots is inevitably hard to keep track of, leading to feelings of worry and frustration for 27 percent of the nation, yet worryingly, 18 percent say they are unconcerned because they believe there is plenty of time to track them down later in life. 

Whilst annual statements from any workplace or private pension provider should be issued, if you move home and don’t update your pension provider, statements can easily go missing. This, coupled with the number of jobs we hold over a lifetime are the main reasons people lose track of old pensions – and the more pensions you have, the more admin, and the harder it is to stay on top of them all.

The research went on to reveal that only 15 percent of people instinctively inform their pension provider when they change address. In comparison, 74 percent will notify their bank, 62 percent will inform their doctors, 51 percent their local authority and 50 percent their energy suppliers in a timely fashion. 

Carina Chambers, Pensions Technical Expert at Moneyfarm says, “Pensions are not easy to keep track of over a lifetime, so it’s quite common for one, if not more to get overlooked and forgotten about, with the average person having three lost pensions containing around £13,000.

“If you are one of these people, then the first thing you need to do is learn how to find lost pensions so as to maximise your savings for retirement. Combining your old pensions could help you streamline your retirement planning and keep your savings on track, but this is something you need to deal with regularly, not just when you’re getting nearer to retirement. 

“You will need to be armed with as much information as possible such as your National Insurance number, date of birth, pension plan number and employment dates. You then have the option of trying to track down your pensions on your own or through the  Government’s Pension Tracing Service who will tell you where your pensions are and then you can contact the providers directly”. 

But if you don’t want to do all this yourself, Moneyfarm have just launched a free Find, Check & Transfer service which does the heavy lifting for you. From tracking down and finding any lost pensions, to checking each pension found and informing you of any benefits that may be lost such as guaranteed tax-free cash or any potential penalties that may be incurred before transferring them into one new personalised plan, tailored to your investment goals.

“Even relatively small pension pots could grow in value over time thanks to being long-term investments and benefitting from compound interest. It means that if you can find a lost pension, it could be worth a sizeable amount of money, which is why knowing how to find lost pensions is so important”, concludes Chambers.

The majority of individuals that receive professional financial advice across the nation have remained with the same adviser throughout, a new study by St. James’s Place (SJP) reveals, highlighting the power of longstanding advice relationships. 

More than three-fifths (62%) have never switched their financial adviser, rising to nearly three-quarters of those aged 35-54 (72%) and those aged 55 and over (74%).

The third chapter of SJP’s Real Life Advice Report, launching today, examines the relationship between a client and their financial adviser, and the impact this can have. The study, which surveyed just under 12,000 individuals, found that the typical relationship with a financial adviser or advice firm lasts around 7 years, but this increases to over a decade for those aged 55 and over – with nearly a third (31%) of this generation having been with their adviser for 16 years or more.

Trust, understanding and financial satisfaction are the main reasons for never switching financial adviser:

• Trusting their adviser (39%)
• Being happy with the advice and financial returns their adviser has delivered (35%)
• Their adviser understanding their financial situation (34%)
• Having a good relationship with their adviser which has been built over several years (33%)
• Their adviser understanding their long-term goals and helping to deliver them (29%)
• Their adviser looking after both them and their family (21%)
• Their adviser having helped them through big life stages/ moments (18%)    

Andy Payne, Head of the St. James’s Place Financial Advice Academy, comments: “Financial advice is about much more than numbers on a page or graphs on a screen. It’s about building deep, meaningful relationships, and as our research shows these can last many years and span generations. Whether you’re navigating the early stages of wealth creation, planning for retirement, or managing an unexpected life change, having a trusted adviser by your side can make all the difference.

Benefits of long-term relationships – being there when it matters

The study also explored the benefits of ongoing financial advice. These include putting the foundations in place for a stronger financial future, with 32% saying it’s helped them to save more money for retirement and 22% saying it’s ensured they have adequate protection in place if they need it.

Ongoing financial advice has helped more than one in ten with major life goals or moments, such as getting on the property ladder (13%) or navigating difficult periods like divorce or bereavement (13%). Others have been able to pass on money to their children or loved ones (19%), to better manage the cost of raising children (12%), or to provide more financial support to elderly family members (11%).

Additionally, financial advice has empowered individuals to improve their quality of life – from giving them more flexibility in their job (16%), affording larger purchases such as a car (13%) to realising the dream of upsizing to a new home (9%). Moreover, 10% have used ongoing financial advice to start their own business, while 8% found support in starting or expanding their families, including through IVF and adoption.

Given these benefits, unsurprisingly 86% of those currently receiving advice from a professional financial adviser would recommend getting advice to family and friends.

Andy Payne continues: “These goals, moments and milestones may be common to many throughout their lives, but the specific circumstances will always be unique. Having support from an expert financial adviser, with not just the technical expertise but the empathy to deploy it sensitively and with their clients’ needs in mind, can be the difference between a hope dashed and a dream realised.”

Over the coming weeks, St. James’s Place’s Real Life Advice Report will continue to explore the benefits of accessing financial advice or guidance through diverse real-life stories from its advisers and clients. The report, released in a series of chapters, aims to highlight how financial advice and guidance can benefit everyone.

Titan Wealth today announces that it has entered into an agreement to acquire Ravenscroft Investments Limited (subject to shareholder and regulatory approval), a wealth management services business, operating in both Guernsey and Jersey.

Andrew Fearon, Joint Group CEO and Head of M&A at Titan Wealth, said: “The acquisition of Ravenscroft Investments Limited in the Channel Islands is a significant milestone in our strategy to deliver Titan Wealth’s unique client to custody offering to clients and advisers in multiple international jurisdictions. Closely following our acquisition of Dubai-based planning firm AHR, we have now made significant progress in expanding our differentiated and integrated proposition for international clients and advisers. With investment management and investment funds in both Ireland and the Channel Islands, offshore platform and custody solutions in the Channel Islands and the ability to provide financial advice in both the UAE and Europe and other jurisdictions, we can service our clients wherever they may choose to live.

“James Kaberry and I have worked closely with the Ravenscroft management team for a couple of years and have been impressed by the strength of the team and business, the values and client relationships that they have developed and continue to nurture. We look forward to seeing what we can achieve together now that they are part of the wider business.”

Ravenscroft provides a wide range of offerings to its clients, including discretionary investment management, fund management, advisory investment services, execution only trading, cash management, and dealing in, and storage of, physical precious metals. Ravenscroft employs around 100 staff to manage private and institutional clients and is one of the largest wealth managers in the Channel Islands. The acquisition takes Titan Wealth’s total AUM / AUA to £27.2bn.

As Titan Wealth looks to grow its international advice proposition, both organically and through further acquisitions, Ravenscroft Investments Limited, which will rebrand as Titan Wealth International next year, will provide key operating capabilities offshore. The business also complements Titan Wealth’s own institutional dealing and wealth platform services in the UK.

The corporate finance and property management businesses of the wider Ravenscroft group are not included in the transaction, which follows Titan’s acquisition of Ravenscroft’s UK investment management business last year.

Founder Jon Ravenscroft will remain with the corporate finance and property management businesses, which will retain the Ravenscroft name, and he will also be a significant shareholder in the Titan Wealth group. The acquisition is subject to shareholder approval and regulatory approval by the Guernsey Financial Services Commission and the Jersey Financial Services Commission.

Robin Newbould, MD of Operations at Ravenscroft, said: “Having spent many months working with the Titan Wealth team, it is clear that they have ambitious plans for growth and that we are an important part of that expansion. We have had numerous approaches over the years, but none were right for our clients, our shareholders and our team. The time is now right for Ravenscroft’s wealth management business to become part of a bigger company and have a strategic role in its future expansion. Titan Wealth was impressed with the skills and expertise of our team and its commitment to clients and it is exciting for the Channel Islands that we will become the hub for Titan’s international growth.”

Jon Ravenscroft, who founded the business in 2005, said: “Ravenscroft is unrecognisable from the company it was almost two decades ago and I am proud of everything my incredible team has achieved. I want to thank shareholders and clients for their unwavering commitment throughout. It was clear that future growth and expansion, to realise the true potential of both the offering and our staff, required a change. It needed to be with the right people who had a client first ethos. With the Titan Wealth name and network, Mark Bousfield and Robin Newbould, together with the wider team, are the right people to take the business forward, allowing me to focus on the corporate finance and property management part of Ravenscroft. I will continue to be a significant shareholder in Titan Wealth and look forward to watching and celebrating their growth and international expansion.”

Wealthtime, the adviser-focused platform business, has agreed a partnership with Wipro, a leading technology services and consulting company, and its global technology partner GBST to deliver a market leading, digital-first platform and innovative customer-centric service offering.

The move supports the group’s long-term growth ambitions and draws on Wipro’s extensive technology and operational expertise to ensure that it continues to meet the evolving needs of advisers and their clients. The deal will see the Wealthtime and Wealthtime Classic platforms brought together under one brand on a significantly enhanced platform, powered by GBST technology. 

Under the agreement, Wipro and GBST will employ a joint co-delivery model to provide end-to-end platform services. Wipro brings a wealth of experience in operational excellence and digital transformation with major global brands across multiple sectors, including UK financial services, to fast-track Wealthtime’s service and technology transformation. The deal also extends the group’s 15-year technology partnership with GBST, with the platform undertaking an accelerated enhancement in 2025. Further continuous updates will be implemented to the platform to future-proof Wealthtime’s technology for their customers.

Under the deal, Wealthtime’s Operations and Technology & Change functions will transfer to Wipro’s newly established UK centre of excellence for business processing, based in the Southwest area. Transferring these functions will allow Wealthtime to leverage Wipro’s advanced technology and substantial IT and AI experience to continually improve service standards and front-end applications. Platform users will benefit from significant enhancements to the Adviser and Investor Zones, alongside a streamlined service provision. Through extensive automation, the platform will aim to reduce manual effort, enabling advisers to focus on higher value work, and generate more in-depth insights for their customers. 

Patrick Mill, CEO at Wealthtime, said: “This deal with Wipro will fundamentally transform our platform and service offering and deliver extensive benefits for advisers and their clients over the medium and long term. Our existing relationship with GBST will allow us to fast track our proposition development through accelerated platform enhancements, to deliver market leading technology that underpins our future strategy. While Wipro’s proven operational expertise across multiple sectors including financial services, will bring new insights to the largely insular platform space to create a best-in-class experience for our customers. 

“Wipro’s commitment to establishing a centre of excellence in the UK based around Wealthtime’s staff will ensure that advisers continue to work with their existing contacts, backed by greater automation and innovation. We know that advisers are best served by exceptional people supported by world-class technology. Today’s announcement allows us to focus on our strengths, delivering a wealth of service and technological efficiencies as we build scale to realise our long-term growth ambitions.”

Omkar Nisal, UKI Managing Director, Wipro Limited, said: “We’re pleased to partner with Wealthtime on their transformation journey and to significantly contribute to their growth by providing end-to-end business administrations and technology services. This project solidifies our continued investments in the UK Life and Pensions industry through our FCA regulated business entity. Backed by our unmatched industry and transformation experience, we will enable Wealthtime’s improved speed-to-market, enhanced customer engagement, and cognitive operations through our innovative and GenAI-powered technology services, along with GBST’s agile and digital Composer platform.”

Rob DeDominicis, Chief Executive Officer, GBST, said: “This agreement marks an exciting evolution in our long-standing relationship with Wealthtime and provides further proof that our strategic partnership with Wipro offers a compelling alternative for wealth management organisations reviewing their end-to-end administration needs. Over the coming months, we’ll work with the Wealthtime team to upgrade their platform to the latest version of Composer, drawing on our deep industry experience to ensure a smooth and efficient transition for advisers and their clients. Benefiting from Composer’s multi-million-pound technology transformation, the new Wealthtime platform will deliver extensive additional functionality for users, all underpinned by our modern, secure and scalable wealth administration SaaS solution.”

Emma Reynolds, the pensions minister, has announced that the government’s MoneyHelper Pension Dashboard service will be made available before commercial dashboards.

Reynolds says it is too early to confirm a launch date to the public, with the DWP previously saying that the launch date will only be announced once they are assured most pension schemes have connected and the dashboards are working well.

The Pension Dashboards Programme (PDP) has been given the task of developing the Pension Dashboards ecosystem and organising for most schemes to connect to it.

Pension schemes must connect to the dashboard ecosystem by October 2026 at the latest, but have been urged to connect earlier, starting from April 2025.

The FCA is expected to publish the final rules of the governance framework for commercial dashboards before the end of the year.

Rachel Vahey, head of public policy at AJ Bell, comments: “Pension Dashboards will have the power to dramatically improve pension engagement. They will give people an overall picture of their pension savings, letting them know how much they have saved so far, where it is, and, importantly, how to add to it and how to get hold of it.  

“It’s therefore reassuring the government is maintaining its commitment to such an important project, especially when the public finance purse strings are so constrained. We need to keep up the momentum to develop dashboards and drive this initiative to delivery. 

“Pension Dashboards need to cover most pension schemes, work efficiently, and be easy to use. Obviously, the Pension Dashboards Programme (PDP) should concentrate on getting all these elements right. But there is simply no point building dashboards if no-one is going to use them.

“Restricting the dashboards to a single one – the government’s own version – means not as many people will be aware of the dashboard or use it, potentially missing out on the opportunity to trace lost pension schemes, but also to put their pension savings back on track. 

“A ‘soft’ launch could make sense, whilst dashboards are tested to ensure they are working as expected. But for dashboards to be a success it’s essential that commercial dashboards are launched as soon as possible, allowing them to play their role in making sure pension savers are aware of them and use them.” 

The government’s Employment Rights Bill was presented on 10 October 2024. In the following summary, Rufus Hood, Country Manager UK at digital staffing agency Coople, shares his thoughts on how it is going to impact businesses and how to prepare for the upcoming changes in 2026 commenting: 

“The government’s new Employment Rights Bill was presented to Parliament on 10 October. Rather than this being the version that is passed into law, it’s highly likely that some parts of it will be amended. Some of the measures the government has previously mentioned would form part of the Bill were not included, such as the ‘right to switch off’ which will now likely be guidance rather than legislation.  

“Employers will need to be aware of the changes to employment legislation that are on the horizon, to make sure that they remain compliant with the law. They might also need to be aware of any increased costs they might incur. For instance, it has been proposed that employers will pay a set charge to zero-hour and irregular hour workers if a shift is cancelled at short notice. Costs to pay staff who are on leave will also increase, as employees will now be entitled to more types of leave from Day one of their employment. 

“Much of the new legislation is expected to come into play in 2026, meaning businesses have some time to prepare. In order to get ahead of these changes, employers should review the bill and conduct an assessment to see what the impact will be, especially of the policies that seem most likely to become legislation. Certain industries may be affected by particular changes – for instance, hospitality is currently quite reliant on zero-hour workers. According to the latest data from the Office for National Statistics, 32% of hospitality staff are on zero-hour contracts. HR managers should begin reviewing policy documents and updating their processes. Line managers should be trained on requests that might be made to them by staff exercising their new rights.  

“The government has provided more details about the proposed new restrictions on zero-hour contracts. Workers on zero-hour contracts, or very low contracted hours, will be given the right to move to a new contract that more accurately reflects the hours they work. Employers will offer the set hours contract periodically, calculated looking back over how many hours the employee recently worked on average. Some aspects of this legislation are yet to be determined through a consultation process, including what this will mean for agency workers – consultation is expected to begin soon.  

“Several new rights for workers have been proposed that would begin from day one of employment, including paternity leave and unpaid parental leave, as well as the right to request flexible working. Statutory Sick Pay will be available from day one, and it will also now be available to workers on lower earnings as the previous Lower Earnings Limit will be scrapped.”  

In the following analysis, Simon Glover, Head of Data, Architecture & Cloud Infrastructure, EMEA, Morningstar Wealth, sets out some of the key things which small and medium-sized IFA firms can do to minimise the risk of a cyber attack derailing their business  

Technology can bring incredible benefits for individuals and businesses alike. It opens doors to information, functionality and tools that enable millions of companies to provide the best service possible to their customers.  

But technology also has a darker side. These doors can be slammed shut – quite literally. Omni Hotels & Resorts, among other major hotel chains, found this out recently when its hotel doors were hijacked in a ransomware attack.  

It’s a case of ‘when’ and not ‘if’ for cyber threats  

Half of UK businesses reported a cyber security breach or attack in the 12 months to April this year, with the finance and wealth industries a current and growing target. Last month, research from technology transformation specialists Stridon found more than half (51%) of professional services firms lack the capacity and insight to fully execute their technology projects. 

Put simply, a financial advice business is more likely than not to experience some form of cyber threat. It may be targeted and malicious, or could result from mistakes and carelessness. Either way, the impact can be severe with far-reaching implications for advisers’ businesses, clients and other members of their value chain. 

The good news is, with a few simple steps, some vigilance and effective communication, advisers can protect their business. There are ways for smaller firms to do this without it being labour intensive or overly time-consuming.  

The exact nature of the threat and response will depend on the:  

• systems a particular business uses 

• underlying infrastructure 

• volume of data it holds and processes 

• size of firm   

The key is building resilience into the business, setting out a recovery plan and thinking about how to protect clients, colleagues and the firm itself as well as other members of the value chain.  

Everyone has a role to play  

However large or small an advice firm might be, everyone has a role to play in this process.  

Awareness is the first line of defence. Everyone in the business should be aware of and think about cybersecurity as a norm. This might take the form or regular training sessions or discussions. The team should be able to spot potential threats or scams and feel confident to flag these to the right person. Recording and sharing these threats makes them less likely to succeed. Depending on the size of the business, this may be one person’s responsibility, or everyone may be equally responsible for sharing and updating a central database for future reference.  

It can be difficult to keep up with new threats. And if it is difficult for larger firms who have at least one person and sometimes a whole team dedicated to cyber security, it is much harder for smaller or micro advice firms.   

But help is available. The National Cyber Security Centre (NSCS) has an excellent range of free resources, many of which are aimed specifically at small and medium businesses.  

Another way everyone can get involved is personal security. Phishing, where people are tricked into sharing personal information or login credentials, often via email, is by far the most common threat. Some 84% of businesses reported a phishing attack in the last year. 

Passwords are crucial; over 80% of all hacking-related data breaches are down to weak or stolen credentials. Easy ways to combat this include regularly changing passwords and using a password manager to securely store, generate and manage passwords. The right password manager will depend on the size and needs of each business but multi-factor authentication, industry standard encryption and zero-knowledge password storage are all worth putting in place. The NSCS also has a helpful guide to password protection.  

Be prepared  

Whatever the size of business, a recovery plan is essential. It does not need to be overly detailed or time consuming. This can focus on setting out high-level points, such as key people, essential steps, and who needs to be engaged with or informed in the event of an attack. Then it can be built on over time.  

Having a plan helps ensure that, if a firm is subject to a data breach or cyber threat, the business is prepared and can immediately respond and recover quicker. This avoids wasting time working out what to do. 

Once a plan is in place, it needs to be regularly tested and reviewed. Threats are ever changing, so responses to them should be deemed an evolving process. Ultimately, awareness and engagement across the entire team is the best line of defence.  

The winners of the 2024/25 Personal Finance Society (PFS) Personal Finance Awards have today (17 October) been announced at the professional body’s annual ceremony. The awards celebrate excellence and achievement within the financial planning profession, recognising the outstanding contributions made by individuals and firms.

The remarkable achievements of winners and finalists were celebrated at a ceremony hosted by Davina McCall at the 12th Knot in London. The awards categories reflect the skills and expertise required to thrive in today’s financial planning landscape. 

2024/25 PFS Personal Finance Awards winners 

Chartered Financial Planner of the Year: Michael Colyer FPFS, Chartered Financial Planner

Chartered Financial Planning Firm of the Year: Five Wealth Ltd

Education Champion of the Year: Stephen Hughes FPFS, Chartered Financial Planner

Investment Advice Specialist of the Year: Christopher Wordsworth APFS, Chartered Financial Planner

Equality, Diversity and Inclusion Champion of the Year: Nicola Crosbie FPFS, Chartered Financial Planner

Paraplanner of the Year: Scott Daniels FPFS, Chartered Financial Planner

Retirement & Later Life Advice Specialist of the Year: Adam Kemp, FPFS, Chartered Financial Planner

Mortgage Advice Specialist of the Year: Joshua Gerstler FPFS, Chartered Financial Planner

Personal Finance News Outlet of the Year: FTAdviser

President’s Award: Progeny

Judging for the awards involves a vigorous process in which each submission is carefully assessed against strict criteria, to ensure the most deserving individuals and firms are recognised. The Personal Finance News Outlet of the Year is decided by a PFS member vote. 

Christine Elliott, Chair of the PFS, said: “We are delighted to celebrate the firms and individuals demonstrating excellence within the profession at this year’s PFS Personal Finance Awards. I would like to congratulate all our winners on behalf of the PFS, as well as those nominated. We are pleased to recognise the outstanding contributions of the past year, which exemplify the skills, knowledge and behaviours that are vital to building public trust in our profession. Today, we celebrate the achievements of our winners and look forward to their continued contributions to the personal finance profession.”

Broadstone, a leading independent financial services consultancy, has responded to the Financial Conduct Authority’s (FCA) proposals for its Value for Money Framework for defined contribution schemes. 

The intention of the FCA’s Value for Money Framework is to reduce the number of savers with workplace personal pensions that are delivering poor value, and drive better value for money across the workplace DC market through greater scrutiny and competition on long-term value rather than predominantly cost. 

Broadstone welcomes the Government’s intention in harmonising the measurement of value for money across a variety of DC schemes, and for savers to be indifferent to the specific scheme type that may be saving in, focusing instead on outcomes. 

However, Broadstone believes the framework should also not lose sight of how different schemes fit with different types of members and employers. For example, small employers may prefer, consistent and high-quality pension providers, whereas, larger organisations typically prefer more bespoke provider services, such as a greater range of investment products and communication strategies. 

Therefore, a ‘like with like’ comparison between different schemes must not scrutinise more ‘vanilla’ pension arrangements for not reaching standards they have not needed to or promised to meet. 

On the subject of different schemes, the framework should also recognise the value that single-employer trust-based schemes bring via their close relationship with their provider. This benefit includes greater scope for bespoke communications, stronger relationships with members and higher standard of data quality and trustee fiduciary duty. 

With regards to the ‘Red, Amber, Green’ (RAG) rating proposals, Broadstone raises some considerable concerns. 

While simplicity and engagement is critical, the RAG system is so reductionist that it risks draconian outcomes for those falling under the amber rating. Moreover, it could lead to reputational damage and league tables based on RAG ratings which may not reflect the true nuances of pension provision. 

The proposal also fails to address the decumulation stage, instead focusing heavily on the accumulation stage with little reference to member outcomes at retirement. This essential stage of a saver’s pension journey is well-understood by regulators in mature DC markets to be a crucial component of member outcomes and should not be overlooked by this framework. 

Broadstone would also like to see some thought given to how ‘retail’ arrangements can be captured in the framework, in order to support those with individuals who have funds in legacy arrangements and the thousands of people who do not rely on employer sponsored schemes. 

David Brooks, Head of Policy at Broadstone, said: “We welcome the consultation and fully support the FCA’s efforts to create a consistent, transparent measure of value for money across all colours and stripes of defined contribution schemes. It’s a crucial step towards enhancing member engagement and improving long-term outcomes for savers. 

“However, while standardised and clear-cut performance metrics are essential, it’s equally important that the framework recognises the unique characteristics of different pension arrangements. A one-size-fits-all approach risks overlooking the individual strengths of various schemes, especially those offering tailored services to specific employers or members. 

“The proposed ‘Red, Amber, Green’ (RAG) rating system, in its current form, may unintentionally subject high-performing schemes to unfair scrutiny, meanwhile, a heavy focus on accumulation risks long-term VfM for savers in later life. 

“It’s critical that any framework preserves the nuances that make different schemes valuable to their members, rather t