PFP Autumn 2025

How

Wealth

What

The

Sector Focus

10 Regulation

Key regulatory updates from across the UK

12–14 Talent

Introducing Pathway to the Profession

34–37 Tax planning

How trusts can protect wealth for the next generation

Business Focus

18–19 Pensions

Rising pressures on UK pensions and what they mean for advisers

20 Advice

Exploring the assisted dying bill

21 Vulnerability

How firms can support vulnerable clients

22–23 Careers

Creating inclusive career journeys with the EDII

24–25 Professional development

How the Professional Map boosts advisers at every career stage

26–27 Mortgages

Can regulatory changes make a difference for mortgage clients?

28–29 Interview

Carla Brown on her PFS presidency

30–32 ‘20 years of the PFS’

Celebrating the story of Local Committees

33 Members

Maximising the benefits of your membership

38–39 PFS POWER

Using cashflow planning to address the human side of advice

40–42 Funds UK equities market outlook

46–47 Talent

Building a more diverse profession through targeted programmes

48 Paraplanning

Setting meaningful client objectives

50 Big 10 quiz

Test your knowledge with our Q&A

CONTACT US

News & Opinion

05 President’s opinion

Carla Brown on a flagship PFS talent initiative

06–09 News UK and regional PFS updates

16–17 Events

Full details of the PFS National Conference

Personal Finance Society

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Tel: (020) 8989 8464

Fax: (020) 8530 3052

Personal Finance Professional is the magazine of the Personal Finance Society (PFS). Members receive a copy as part of their membership. The cost to non-members is £7 per copy. Views expressed by contributors or advertisers are not necessarily those of the PFS. The PFS will accept no responsibility for any loss occasioned to any person acting or refraining from action as result of the material included in this publication. Reading issues of Personal Finance Professional can be included as part of members' CPD requirement (35 hours per year).

EDITORIAL

Editor: Luke Holloway luke.holloway@cii.co.uk

Contributing editor: Liz Booth

DESIGN

Senior Designer: Will Williams

Picture Editor: Akin Falope

Production: Jane Easterman

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Annual General Meeting 2021

We are delighted to announce that the CII AGM 2021 will take place virtually at 3pm (BST) on Wednesday 30 June

We are delighted to announce that the PFS AGM 2025 will take place as a hybrid meeting at 4:00pm (BST) on Thursday 25 September.

The PFS will once again be holding a hybrid AGM this year, welcoming members online and in person at the National Conference Centre, Hampton in Arden, Solihull on Thursday 25 September.

Following the success of the CII’s first fully virtual AGM in 2020, which reached record numbers of attendees from across the globe, the CII will once again welcome its members virtually on 30 June 2021.

No matter where in the world, our members will be able to attend, vote, and ask questions at the event, ensuring they remain at the heart of our decision making.

No matter where in the world, our members will be able to attend, vote, and ask questions at the event, ensuring they remain at the heart of our decision making.

Look out for more information on our website and an email with joining instructions from Lumi, our AGM service provider.

Look out for more information on our website and an email with joining instructions from CES, our AGM service provider.

We look forward to welcoming you virtually once again in June!

We look forward to welcoming you in person or virtually. thepfs.org/agm

www.cii.co.uk/agm

INVESTING IN THE FUTURE, TOGETHER

Carla Brown on how the PFS is str engthening the profession, supporting members and investing in the next generation of financial planners

As we move into Q3 2025, the PFS continues to evolve to meet the needs of our members and the wider profession. I’m pleased to share some of the significant activity taking place, focused on collaboration, investment in the future and ensuring that your professional body remains strong, representative and relevant.

This summer saw a major milestone in the relationship between the PFS and the Chartered Insurance Institute, with the first joint board meeting held between our organisations. This marked a significant turning point in how we work together, with a genuine focus on collaboration, transparency and, above all, member outcomes. We approached this meeting with open minds and a shared commitment to building a more constructive and effective working relationship. While our structures and roles remain distinct, our shared purpose – to serve our members and promote high standards across the profession – is a unifying force. I left the meeting encouraged and optimistic about what can be achieved when both boards are aligned in their ambition and determined to work together. Looking ahead, we are taking meaningful steps to address one of the biggest long-term challenges facing the profession: attracting and retaining new talent. That’s why I’m particularly proud of the PFS board’s decision to commit £1m to support initiatives that bring new blood into financial planning. This landmark investment, announced in July at a live event in London, will help fund access programmes, development pathways and outreach activities to raise awareness of the profession among underrepresented groups. This isn’t just about addressing a pipeline problem; it’s about ensuring the financial planning profession of the future reflects the diverse communities we serve and is equipped to meet their changing needs.

In addition to this long-term focus, we continue to provide meaningful support for members right now. In September and October, we kick off our Autumn Roadshows in Surrey, which offer a great opportunity to reconnect with peers, hear from expert speakers and gain valuable continuing professional development. These in-person events are always a highlight, bringing together advisers, paraplanners and technical professionals in a way that allows real connection and shared learning. If you haven’t yet registered for your local session, I encourage you to take a look and join us.

ENERGISING THE PROFESSION

Looking further ahead, I’m delighted to say that planning is well underway for the PFS National Conference, taking place in Birmingham on 13 November. This flagship event will bring together professionals from across the country for a day of insight, connection and inspiration. It’s a key opportunity to celebrate our profession, explore big ideas and come away energised for the future.

As president, I remain passionate about ensuring that the PFS is shaped by and for its members. We continue to listen, learn and take action. Whether through local engagement, national initiatives, or strategic investment, your voice helps guide our priorities. We want you to feel proud of your membership and confident that your professional body is acting in your best interests.

On behalf of the board, thank you for your continued support. The months ahead bring both challenges and opportunities, but by working together, we can build a future that is strong, inclusive and full of promise. ●

Carla Brown is president and chair of the PFS

PFS ANNOUNCES £1M INVESTMENT IN TALENT INITIATIVES FOR FINANCIAL PLANNING PROFESSION

At an event in central London in July, Carla Brown, president of the PFS, announced a £1m investment in initiatives designed to attract and nurture talent for the financial planning profession.

Brown was joined by fellow PFS board members Edward Grant and Gill White, who set out details of a new PFS ‘Pathway to the Profession’. Marking the Society’s 20th anniversary in 2025, the Pathway brings together PFS-led initiatives and partnerships with other organisations to open doors, remove barriers and build a profession as diverse and dynamic as the society it serves.

Through this new Pathway, the PFS aims to invest, inspire, involve and inform:

● Investing in early careers by equipping aspiring professionals with the knowledge, skills and behaviours needed for success.

● Inspiring the next generation, supporting career returners and creating opportunities for new entrants.

● Involving members by encouraging more to volunteer and mentor aspiring professionals.

● Informing school-age children of the value of financial planning, ensuring financial education benefits them, society and the profession.

The PFS has committed an initial £500,000 to Pathway initiatives. More than £200,000 will fund opportunities for 500 new entrants to begin the Diploma in Regulated Financial Planning, with free PFS membership included as they start their professional journey.

A further £50,000 has been allocated to a new annual symposium showcasing the profession to young people, held alongside the PFS National Conference to give attendees a first-hand experience of the profession at its best.

Nearly £200,000 will support projects with Coventry

University, everywoman, The Duke of Edinburgh’s Award, UCAS and upReach. These include scholarships, internships and initiatives to promote entry and re-entry into the profession. Funds will also refresh the materials used by PFS member volunteers at existing outreach events.

Member input

At the RSA House launch event, the PFS board invited members to suggest ideas for further initiatives. This attracted a huge response from across the personal finance profession in the months following the event. These ideas will make up the remainder of the total £1m investment.

The launch event was hosted by finance content creator Mr Money Jar. Attendees included members of the PFS’ Local Committees and POWER panel, representatives from firms, financial academies and educational institutions, former PFS Award winners and members of the CII Group and PFS boards. Media and other content creators, including Kia Commodore, Cameron Smith and Gabriel Nussbaum, were also present.

Brown said: “Every profession needs a pathway that anybody with the passion and potential can find and follow. As president of the PFS, I’m proud to share that the PFS board has approved the launch of our new Pathway to the Profession – a bold initiative backed by an initial £1m investment in our 20th anniversary year. This marks a significant and deliberate step. We are demonstrating our ongoing commitment to nurture the next generation of professionals and support the vibrant future of the financial planning sector.”

For more information about Pathway to the Profession, visit: www.thepfs.org/careers-in-personal-finance/ pathway-to-the-profession

(L-R) MR MONEY JAR, CARLA BROWN, EDWARD GRANT AND GILL WHITE

PFS NATIONAL CONFERENCE RETURNS THIS NOVEMBER –BOOK YOUR PLACE NOW

The PFS has announced that its flagship National Conference will take place at London’s Excel on Thursday 13 November, bringing together financial advisers, planners, paraplanners and other professionals for a day of insights, debate and learning.

This year’s theme, ‘Mind the Gap’, will explore the key challenges facing the sector, including the growing talent gap as advisers retire, the long-debated advice gap and the opportunities arising from the Advice Guidance Boundary Review, the innovation gap as regulation evolves

PFS ANNOUNCES AGM 2025

The PFS Annual General Meeting (AGM) will take place as a hybrid event at 4pm (GMT) on Thursday 25 September 2025.

The PFS is delighted to once again offer members the chance to join the meeting either in person at the National Conference Centre, Hampton in Arden, Solihull, B92 0EJ, or online from wherever they are in the world.

This is an opportunity for all PFS members to take part, vote and raise questions.

More details can be found on the PFS website and members will receive joining instructions by email from AGM service provider, CIVICA.

The PFS looks forward to welcoming members, whether virtually or in person, this September.

For more information, visit: www.thepfs.org/agm

to encourage new solutions, and the generational gap as wealth transfers to younger, digitally native clients.

More than 25 sessions across five theatres are scheduled, featuring keynote speaker Geoff Ramm, an internationally recognised expert on customer service. Other contributors include Abraham Okusanya on redefining adviser value in the age of artificial intelligence, Jane Gow on the talent gap, and Philippa Hann on ethics in finance.

The free-to-attend event offers up to seven hours of CPD and opportunities for professional networking. Delegates will also hear from leading practitioners on business growth, career development and the future of advice.

To book your free place now, visit: www.pfsnationalconference.org

Read more about this year’s PFS National Conference on page 16 of PFP.

APPOINTMENTS

PFS WELCOMES TWO NEW PFS POWER PANELLISTS

The PFS is pleased to announce the appointment of Guy Skinner and Rosa Nash as the newest members of its PFS POWER Financial Planning Practitioner Panel, following a highly competitive recruitment process.

The PFS POWER Panel brings together a diverse group of financial planning professionals who provide insight, challenge,

REGULATION

and constructive feedback to help shape PFS strategy, initiatives and member engagement. The addition of Skinner and Nash will further strengthen the panel’s breadth of experience and perspective, ensuring it continues to represent the needs and aspirations of our growing membership.

Skinner is a director and independent financial adviser at Citygate Financial Planning, a business that he started in 2015. He works primarily with lawyers and business owners on financial planning, as well as advising on employee benefits.

Nash is a Chartered Financial Planner at Montgomery Charles Wealth Management, and Fellow of the CII. She specialises in providing comprehensive lifestyle financial planning to dentists and high-net-worth individuals.

The pair join a committed group of PFS POWER Panellists who work closely with the PFS leadership team to create CPD content by practitioners, for practitioners, and share views on key policy developments, member services and the future direction of the profession.

Access PFS POWER content at: www.pfspower.org

CII SETS OUT VISION FOR SHARING OF VULNERABILITY DATA

The CII Group has outlined a vision for transforming how vulnerability data is shared across the insurance and personal finance distribution chain to meet the Financial Conduct Authority’s (FCA) requirements.

In a new report summarising a recent roundtable held in May, titled Unlocking outcomes: Data sharing across the distribution chain, the professional body calls for a shift from compliance-focused approaches to outcome-driven data sharing, recognising the need for “common standards and an ecosystem that promotes sharing data to create customer value”.

The approach represents a shift from penalties and incentives, demonstrating how firms can build

stronger customer relationships and commercial value through providing a more personalised service, reducing the time and emotional distress associated with repeatedly disclosing vulnerable circumstances.

In its Managing Vulnerability in Insurance Roundtable Summary report published in April, the CII identified a gap between the work currently being done on vulnerability within the sector, and tangible benefits to customers who are experiencing vulnerability. Data sharing was raised as a key component in bridging this gap and explored further at the roundtable, which consisted of participants from Allianz, Association of Financial Mutuals, AXA, Claims Guardians, MorganAsh, FWD and RSA Group, among others.

Matthew Hill, CEO of the CII group, said: “Sharing vulnerability data across firms has the potential to substantially improve the experience of customers in vulnerable circumstances. We are making this report available in an effort to drive the vulnerability conversation forward and implement action that meets regulatory requirements and customer needs.”

ROSA NASHGUY SKINNER

APPOINTMENTS

EDWARD GRANT APPOINTED DISABILITY AND ACCESS AMBASSADOR

The minister for social security and disability, the Rt Hon Sir Stephen Timm MP, has announced the appointment of nine new Disability and Access Ambassadors to help ensure that businesses are doing all they can to support their disabled customers and employees.

Edward Grant, non-executive director and past president of the PFS, and its longest-serving non-executive board member, will be representing the insurance sector. Grant is also a board member of the European Financial Planning Association and vice-president of the Insurance Institute of London.

The ambassadors drive improvements in the accessibility and quality of services and facilities in their sector for disabled people, helping to ensure businesses are doing all they can to support disabled customers. The ambassador roles are voluntary posts, undertaken for a maximum of three years and supported by the Disability Unit, part of the Office for Equality and Opportunity.

CHARTERED

INTRODUCING FIVE NEWLY CHARTERED CORPORATE FIRMS

Five financial planning and insurance firms have achieved Chartered status in the second quarter of 2025. Chartered status is a symbol of technical competence and signifies a firm’s public commitment to professional standards. In receiving Chartered status, firms declare their adherence to the CII Code of Ethics and commitment to supporting initiatives that build public trust, ongoing development of people, a customercentric approach and the development of the profession.

Firms that gained Chartered status in April-June 2025 are: Morgan Williams & Co, M4 Financial Group, The Islands’ Insurance Brokers, Hepburns Insurance Brokers, and M.J. Touzel Insurance Brokers.

Nicola Stacey, president of the CII, said: “I am honoured to award Chartered status to these five firms and welcome them into our prestigious professional community. They have joined us at a time when we are reflecting on our rules to ensure Chartered status is not just a mark of compliance but a strategic asset for firms to enhance growth, differentiate themselves and gain recognition in a changing market. In achieving this designation, they have set themselves apart from other firms in the eyes of their customers and clients. We look forward to celebrating their achievements as they demonstrate professional excellence in the years to come.”

KNOW YOUR LIMITS

A proposed 10-year long stop on complaints to the Financial Ombudsman Service could change how planners manage client records and long-term advice, as Dr Matthew Connell explains

In July, the Treasury and the Financial Conduct Authority (FCA) consulted on whether complaints to the Financial Ombudsman Service (FOS) should be subject to a 10-year long stop. In the consultation, they indicated that this would probably not apply to long-term products such as pensions and mortgages.

There are already time limits designed to prevent consumers complaining to the FOS many years after they could – and should – have realised that something was wrong. But this long stop would be different: it would apply from the point the conduct being complained about occurred, regardless of how easy or difficult it was for the customer to make an informed decision about whether to complain.

PAST DEBATES ON LONG STOPS

In 2016, the Treasury and the FCA considered introducing a long stop for pensions and investment advice. At that time, 254 cases were taken to the FOS against advisers relating to incidents which had occurred more than 15 years earlier. Of these, 30% (76 cases) were upheld. The Treasury and FCA concluded that because “relatively few complaints relate to advice given by independent financial advisers 15 years ago or more”, they would rule out recommending a 15-year long stop as this would inappropriately limit consumer protection for long-term products.

Other potential solutions could achieve similar outcomes without removing consumer protection. One option is to introduce a formal record of client understanding at a key stage in the advice process – for example, when a client moving through a phased annuity and drawdown process reaches the final phase of annuitisation. At that point, the

client could have a recorded conversation with their adviser, reviewing their original objectives, assessing how well those objectives have been met and raising any concerns.

If constructed fairly, this conversation would provide a strong evidence base for future adjudicators, allowing them to consider whether subsequent complaints should be time-barred because the client was clearly aware of issues that might have given cause for complaint. Today’s technology, along with the widespread use of recording and transcription tools, makes this option far more practical than it was in 2016.

Ultimately, a solution to historic complaints that focuses on genuine improvements in consumer understanding and record-keeping will be the most effective and resilient – and could pave the way for a more commercially viable market in run-off insurance for advisers. Financial advisers are already taking steps in this direction by holding richer conversations with clients, recording them more often and maintaining higher-quality customer databases. ●

Dr Matthew Connell is director of policy and public affairs of the CII Group

PFS ONLINE POLICY CONTENT

Briefings, updates, research papers and much more are available for download at: www.thepfs.org/insight

Featured speaker Geoff Ramm: ‘A customer service game changer’

Join us for a day of essential insights, inspiration and learning

Attendance is free and will support your CPD and your own professional journey. Leave with fresh ideas to take back to the office and your clients.

Spend the day exploring gaps which impact our ability to deliver the best possible outcomes for consumers, including: The Talent Gap, The Generations Gap, The Advice Gap and The Innovation Gap

Featured speakers:

Geoff Ramm

Paul Cleworth

Brett Davidson

Tony Fields

Jane Gow

Philippa Hann

Abraham Okusanya

Warren Shute

Becca Timmins

SHAPING THE FUTURE OF FINANCIAL PLANNING:

With the challenge of attracting young, diverse talent becoming ever more urgent, PFS president Carla Brown heralds the new Pathway to the Profession initiative

s we celebrate the 20th anniversary of the PFS, it’s natural to reflect on how far our profession has come. But for me, the more urgent priority is looking ahead, because the future of financial planning is at a crossroads.

The number of new entrants to our profession is declining. Today, fewer than 6% of financial advisers are under 30. Female representation remains low, with only 18% of advisers women – even though 23% of Chartered financial planners are now female.

And while we’ve grown the number of Chartered and Fellow members of the PFS to record levels, the pipeline of earlycareer professionals is shrinking. That’s just not sustainable.

I see this challenge first-hand in my own practice. Attracting young, diverse talent isn’t easy, but it’s vital. If we fail to act now, we risk sleepwalking into a future where financial planning becomes less accessible, less inclusive and ultimately, less relevant to the clients we serve.

O OP E EN IN N G D DO O OR S

That’s why I’m proud that we announced in July the PFS’s most ambitious initiative to date – a £1m investment in the future of financial planning, through our new programme, Pathway to the Profession.

This isn’t just a funding pledge. It’s a strategic, valuesled commitment to inspire, inform, involve and invest in the next generation. We want to open doors, remove barriers and support those who might never have considered our profession as a career path until now.

At the heart of the initiative is a pledge to fund 500 students to begin their PFS Level 4 Diploma, including one R0 exam and PFS membership completely free of charge. That’s a £235,000 investment in talent and, importantly, potentially 500 lives changed. We want to reach students from all walks of life, whether they’re sixth-formers, career changers, or university graduates still exploring their options. I’m really pleased that we’ve already received more than 160 firm expressions of interest in these places.

We’re also tackling visibility. We’ll create a dedicated youth zone at our National Conferences from 2026, more TED Talk, less ‘trade stand’, to give young people a vibrant, authentic insight into financial services. And we’re committed to promoting internships, a route I know from personal experience can be transformational, particularly for those from less privileged backgrounds. Since launch, dozens of people have told us they’d value more information on internship support. Many others have expressed interest in returning to the profession.

But this isn’t something we can do alone. That’s why we are thrilled to be working in partnership with exceptional organisations who share our mission:

● Coventry University – where we are funding scholarships and student support.

● UCAS – helping us raise awareness of financial services apprenticeships and other opportunities.

● UpReach – a social mobility charity guiding students from lower-income families into top graduate careers.

● Everywoman – advancing female representation across financial services.

● The Duke of Edinburgh financial skills programme –helping young people develop real-world life skills through financial education.

Altogether, we had allocated just over £500,000 when we launched the programme in late July. We said the remaining half of our £1m investment would be shaped by our members and put out an open call for suggestions.

I’m delighted by the response so far, with more than 6,500 members engaging with our survey and hundreds of ideas submitted. Ideas range from multimedia awareness campaigns to advancing financial literacy among young people through schools and clubs. Some have proposed creating new A-Level style qualifications, while others have spoken about ensuring we are reaching neurodivergent individuals. It’s terrific that so many members have invested time to share their ideas – thank you if you are one of them.

We are currently working through all of them and will take decisions later this year, following a full review at our November board meeting.

The funding itself comes from PFS reserves, ringfenced specifically to promote and facilitate financial education and professional development. Our board agreed that using these funds to invest in the future of the profession is not only appropriate but essential.

B

BU I L DI N NG T HE E P RO O FE E S SS IO O N

Ultimately, our Pathway to the Profession is more than an initiative – it’s a promise. A promise to build a profession that reflects the diverse, dynamic society we serve. A promise to equip the next generation with the skills, support and opportunities they need to thrive. And a promise not to stand still while the world around us moves forward.

As president, I believe it is our duty, and privilege, to lead this change. I invite every one of you reading this to join us, lend your voice and help shape the future. In particular, if you know someone who might benefit from what we’ve developed, please share this article and the QR code below with them, and invite them to complete the form to register their interest in one of the initiatives. By working together, we will ensure the next 20 years of financial planning are even more inspiring than the last. ●

Carla Brown is president and chair of the PFS

LONDON CALLING

The PFS National Conference is coming to London! Will you be joining us?

he PFS’s flagship event – our National Conference – is coming to London’s Excel on Thursday 13 November.

Whatever your role in the profession, join us for a day of essential insights, inspiration and learning. We promise that taking time out of the office will be time well spent.

Not only will it support your professional development, but attending will also equip you with fresh ideas to take back to the office and into relationships with current and future clients.

MIND THE GAP

‘Mind the gap’ is an iconic safety warning that alerts London Underground users to the physical gap between train doors and platform edges. As a profession, our role also assists clients with safe passage – but the destination is financial security and the confidence that comes with being in control of their own financial destiny.

This year’s National Conference will consider multiple gaps affecting our ability to deliver the best possible outcomes for consumers, including these four key areas:

● The Talent Gap: Advisers are retiring

and consumer demand for professional advice is growing. How will our sector plug this critical gap?

● The Advice Gap: Will the Advice Guidance Boundary Review finally provide a solution that gives all consumers the advice they need, when they need it and at a price they can afford? What new opportunities could this open up for our profession?

Geoff Ramm is one of the world’s most inspirational customer service speakers. Like you, he knows how critical it is to design a customer experience that ensures you retain clients for years to come.

Ramm has challenged and inspired entrepreneurs, high performance teams and organisations across 54 countries to create award-winning ideas to outperform the competition. His on-stage presence, infectious enthusiasm and humour will ensure his ideas are talked about long after the event.

ELSEWHERE ON THE PROGRAMME

The following are all confirmed to speak at this year’s conference – each making a unique contribution to exploring the core theme of ‘mind the gap’ across their sessions:

● The Innovation Gap: The government has tasked the regulator with simplifying rules to drive greater innovation in the sector and contribute to economic growth. Is innovation a threat or an opportunity for our profession?

● The Generations Gap: Wealth is moving to the Gen Z digital natives. How can professional advice stay relevant to contrasting values and financial priorities?

INTRODUCING OUR SPEAKERS

The packed programme will feature more than 25 sessions across five theatres. Expect a blend of inspiring keynote speakers, teamed with experts and thought leaders from across our profession – many of whom have previously spoken at PFS roadshows.

GEOFF RAMM

● Brett Davison: How do you want to go out? Building a business worth leaving

● Tony Fields: From pressure to purpose – the shift every ambitious financial planner must make to win at work and at home

● Jane Gow: Talent gap panel discussion

● Philippa Hann: Ethics in finance

● Abraham Okusanya: Adviser reimagined: redefining value in the age of AI

● James Street: AI use cases for financial advisers

● Becca Timmins: Vote for future yourself: intentional evolution in your career as a financial planner

● Paul Cleworth and Warren Shute: Beyond £1m: building a business that truly matters – the Finance Geeks share their journey

WHY ATTEND?

The PFS National Conference is the leading event for the financial planning community in 2025! It will:

● Provide high-quality continuing

KEY DETAILS

Date: Thursday 13 November

Location: Excel, London

CPD: 7+ hours

Cost: Free to PFS members

Registration: Book online at www.pfsnationalconference.org

professional development for personal finance professionals on a broad range of current topics.

● Encourage collaboration between providers and financial planning firms to spark new relationships and strengthen existing ones.

● Inspire young professionals to develop their career in the profession.

● Facilitate professional networking.

● Offer a platform for live debate of issues relevant to the financial planning community.

● Promote good practice and the growth of financial planning businesses.

ABOUT THE VENUE – EXCEL LONDON

The new ICC Maritime Suite at Excel London is right in the heart of London’s historic Royal Docks. The venue is connected by an Elizabeth line station, three DLR stations and a cable car station. It is a short trip from any of the major London rail stations to Excel. Onsite parking is available (pre-book only).

BOOK YOUR FREE PLACE NOW

Each year we strive to bring together financial advisers, planners, paraplanners, compliance specialists, back-office teams and partners for a day of inspiration, learning and networking at one of the UK’s premier conference venues.

Visit the conference website now to explore the full programme, save the date in your diary and book your free place today. Remember, attendance is free and the conference will provide up to seven hours’ CPD. We look forward to seeing you there! ●

Simon Webster is membership marketing manager of the PFS

he state pension is under growing pressure. Already costing 5% of GDP – second only to the NHS – its long-term sustainability is now at the centre of political debate. With warnings of rising costs, gaps in saving and widening inequalities, the question is no longer whether reform is needed but how quickly it must come.

UK government analysis suggests:

● More than three million self-employed workers are not saving into a pension.

● Only one in four low earners in the private sector is saving.

● Only one in four people of Pakistani or Bangladeshi heritage is saving.

The analysis also found a 48% gender gap in private pension wealth among people currently retiring, with a typical woman receiving little more than £100 a week from private pension income compared with £200 for a man.

Meanwhile, the Office for Budget Responsibility (OBR) has warned that rising life expectancy and the triple lock could push the cost of the state pension to £200bn by 2073.

PENSION PRESSURES

As pension costs climb and savings gaps widen, a revived Pensions Commission points to big shifts in retirement planning. For financial planners, understanding these changes will be key to guiding clients with confidence. Liz Booth reports

SAVINGS SHORTFALLS

There was slightly better news from the Pensions and Lifetime Savings Association, which said the cost of a minimum retirement living standard has fallen thanks to lower energy prices – now £13,400 a year for a single person and £21,600 for a couple. But it also warned that with the minimum 8% auto-enrolment contributions, private sector employees could face a pension pot shortfall

of around £740,000.

Against this backdrop, the revival of the Pensions Commission has been welcomed. Julian Mund, chief executive of Pensions UK, said: “Pensions UK supports the ambition this government is showing by setting up a second stage of the landmark Pensions Commission, 20 years on. There is a significant job to finish: our research shows one in five working households are on course to fall short of the income needed to meet the minimum retirement living standard.”

He added that higher pension contributions

must become the norm, more people need to be brought into saving and the state pension must always protect against poverty.

The new Commission, announced in July, will be led by Baroness Jeannie Drake, Sir Ian Cheshire and Professor Nick Pearce. It will explore the long-term questions of adequacy and retirement outcomes, building on the Pensions Investment Review and the Pension Schemes Bill, which focused on boosting investment and growth.

RISING RETIREMENT AGE

One of the options under review is the state pension age, already set to rise from 67 to 68. Jack Carmichael, of consultants Barnett Waddingham, has warned that the true increase in costs could be £8bn a year higher than forecast, requiring either a rise in National Insurance or a further increase in pension age. He suggested it could climb as high as 80 to maintain affordability.

The state pension could become financially unsustainable by 2035

The OBR predicts the state pension could rise from 5% of GDP to 7.7% by 2073–74 – around £200bn in today’s terms. With higher life expectancy, that figure could reach 8.4% of GDP.

David Sinclair, chief executive of the International Longevity Centre UK (ILC), welcomed the Commission’s revival: “The review needs to develop a plan and timetable for rapidly improving saving adequacy but also needs to consider the role of work in our 50s and 60s to support retirement income.

“I also welcome the decision to conduct the review of the state pension age alongside the Commission’s work. This should mean government, industry and stakeholders can take a genuinely long-term view and work together to make bold decisions today that will benefit the generations of tomorrow.”

The ILC has already said the UK and other ageing populations may need to increase the state pension age to 71 by 2050 to keep the balance between workers and retirees.

Analysts at the Adam Smith Institute have also warned that by 2040, the UK could have 22.7 million people claiming benefits including the state pension – supported by only 34 million of working age. They concluded: “The state pension could become financially unsustainable by 2035.”

All of this underlines the growing need for financial advice as people navigate the rising cost of living, uncertain retirement ages and pension gaps. As Dr Matthew Connell, director of policy and public affairs at the Chartered Insurance Institute, put it: “The first Pensions Commission was a success, finding a way through auto-enrolment to get more money into pensions. But it also highlighted the growing need for financial advisers, helping people determine whether they’ve saved enough, when they can retire and how to manage their savings for the rest of their life, for themselves and their family.” ●

1 IN 5 WORKING HOUSEHOLDS IS ON COURSE TO FALL SHORT OF THE INCOME NEEDED TO MEET THE MINIMUM RETIREMENT

LIVING

STANDARD

Liz Booth is contributing editor of PFP

ASSISTED DYING BILL IMPACT

As the Bill moves through Parliament, experts warn it could force major changes to policy terms, premiums and claims – raising questions over how assisted deaths should be handled. Liz Booth reports

he UK’s Assisted Dying Bill is undergoing its second reading in the House of Lords, after clearing all hurdles in the House of Commons. However, there is still a risk it may run out of time to become law.

If passed, the bill says implementation will take up to four years, meaning it would be introduced in late 2029 at the earliest.

For financial planners, that lead time would offer an opportunity to prepare clients for the potential implications, particularly where life insurance, estate plans and succession arrangements may be affected.

If it becomes law, it is expected to have significant impacts on the life insurance market. As Sammy Rubin, founder & CEO of YuLife, says: “Insurers, employers and policyholders face a monumental shift in how life insurance is structured and understood.”

He explains that most life insurance policies include a suicide exclusion clause for the first 12 months of coverage. However, assisted dying is not explicitly addressed.

“Insurers may need to clarify whether assisted deaths are treated similarly to deaths from terminal illnesses or suicides,” says Rubin. “Under the proposed UK law, assisted dying

would not be classified as suicide in the legal sense. This distinction could complicate claims assessments and may lead to the need for new policy terms to clarify coverage for assisted deaths.”

He also suggests that legalising assisted dying could influence how insurers calculate premiums. They may need to reassess risk models for terminally ill policyholders and revise premium structures to account for potential increases in claims.

Finally, he says: “Critics have also raised concerns about coercion risks. Vulnerable individuals might feel pressured by relatives or financial circumstances to opt for assisted death prematurely, particularly if life insurance payouts are seen as a motivating factor.”

PREVENTING PROFITING

“UK law prevents people from profiting from a crime,” says Tom Connor, director at Drewberry. “So, if you participate in committing assisted suicide, you’ll be barred from receiving any of their life insurance benefits.

“Life insurers will generally pay out on a policy if you receive a terminal illness prognosis, enabling the policyholder to receive the benefits

while they’re still living, which can help to ease some pressures.

“However, term life policies generally exclude a payout for a terminal illness in the last 12 months of cover. Although it’s not intended, this could result in a situation where someone finds themselves terminally ill in the last months of their life cover, giving them an incentive to take their own lives before their cover expires,” says Connor.

Experts at Scor conclude: “Looking at the proposals, it seems reasonable to assume we would not see a rapid rise in death claims that would have traditionally been terminal illness claims or newly advocated advanced death claims.

“While there may be a small cohort of policyholders who feel motivated to choose end-of-life care to benefit dependents or loved ones with their insurance benefit, we would expect this to be picked up in the independent reviews, especially when the ‘attending doctor’ is likely to be the doctor who gave the initial terminal diagnosis for most cases.”

They stress: “There is no doubt that the introduction of such legislation would cause insurers to review their policy terms and philosophy positions.

“It is possible that claims experience could see an increase in assisted deaths where policies have restrictions on not being able to claim under terminal illness within the last 18 months of their policy, or where a term policy nears its expiry.

“However, if this was the main motivator for a patient to go down the assisted dying route, you would expect such applications to fail under the safeguarding proposals. Therefore, it seems unlikely insurers would have valid grounds to decline such claims, as the death would be legally supported.”

Planners may need to stay alert to these ethical and safeguarding considerations when discussing policy benefits with clients in difficult circumstances. ●

Liz Booth is contributing editor to PFP

MANAGING VULNERABILITY IN FINANCIAL SERVICES

Vanessa Riboloni shares insights from a CII webinar which discussed practical ways firms can better support vulnerable customers

he webinar Managing vulnerability: from principles to implementation, brought together regulatory, academic, and consumer advocacy voices to discuss strategies for supporting vulnerable customers. The session moved beyond theoretical principles to explore practical actions.

Chaired by Adam Harper, executive director, strategy, advocacy and professional standards at the CII Group, the panel featured Charlotte Matthews, manager of consumer policy & partnerships at the FCA whose team lead on vulnerability; Dr Chris Fitch of the Money Advice Trust; Peter Hamilton of Zurich and former disability and access ambassador for insurance; Chris Adlard, customer experience director at Elephants Don’t Forget; and Mandy Hunt, chair of the CII’s Underwriting Community board.

Although the panellists spoke from an insurance context, the lessons apply equally to financial planning and PFS members can watch this CPD-accredited webinar on demand here: bit.ly/4lFB51G The speakers covered:

Operationalising vulnerability: During the session, Dr Fitch suggested a practical three-question test firms can use:

● Vulnerable to what? Identify the risks the client might face for your specific service. This could include misunderstanding fees or risk, cognitive overload from complex recommendations, susceptibility to scams, distress during bereavement or divorce, or lack of digital access.

● Supported how? Adapt your service to support against these harms. For example: tailor advice by slowing the pace; provide teach-back checks on key risks; offer flexible channels and timings; allow permission to involve a trusted third party; and follow up in plain English and accessible formats.

● If not us, who? If the need sits outside your remit, create a referral or escalation path. This could be internal – through vulnerability champions or compliance for complex situations – or external signposting (with consent) to charities, bereavement support or legal advice.

Measuring outcomes: Both good and bad outcomes should be defined. Firms should map foreseeable harms and use varied metrics, such as direct customer feedback segmented by vulnerable and non-vulnerable cohorts, then use these insights to change processes and monitor if outcomes improve.

Encouraging disclosure: According to FCA research into the experiences of customers in vulnerable circumstances when engaging with the financial services sector, only four in 10 vulnerable customers disclose needs, hindered by low trust and uncertainty. Firms can build trust through clear explanations, simple first steps, multichannel prompts, active listening and personalised communication.

Training and culture: Firms should adopt organisation-wide training, move beyond annual modules into continuous learning,

test competence, and tailor content to different roles.

Inclusive design: Vulnerability data should shape products and services earlier. Embedding it sooner builds trust, accessibility, compliance and reputation. Examples include a suicide-prevention kit for employers and elder-care support. AI and empathy: Artificial intelligence (AI) can spot patterns of vulnerability and simulate scenarios for training, but must not replace human judgement in complex, sensitive conversations.

PRACTICAL TAKEAWAYS

1. Define outcomes clearly – for your target markets, including vulnerable cohorts –and monitor both desired outcomes and foreseeable harms with granular data. Act on what you find and test whether your actions have the desired effect.

2. Make disclosure safe and simple, with clear “why it helps” messaging, frequent prompts across channels, and staff trained to listen and adapt.

3. Train the whole organisation, not just the frontline. Use role-specific scenarios, ongoing competence checks, and a continuous learning approach, including spaced repetition learning.

4. Build vulnerability into design from the start, embedding considerations into factfinds, onboarding, suitability assessments, client reviews and disengagement processes.

5. Use AI as an assistant, not a replacement and keep multiple channels open so customers can choose how to engage.

These recommendations will not just not only help firms to meet the FCA’s expectations, they will also help them to retain trust when it matters most.●

Vanessa Riboloni is professional capabilities and insight manager of the CII

fell into financial planning after a temp job turned permanent. I had no idea these careers even existed until I was already in one.”

This sentiment, voiced by a participant in a recent careers workshop, is still far too common. Financial planning offers rewarding careers that improve people’s lives, yet many professionals discover the path by chance, not choice. With talent shortages intensifying and workforce expectations shifting fast, improving transparency on routes into – and through – the profession is now urgent.

To help address this, we’ve partnered with EDII, the innovation, education and talent development company for regulated markets. Together, we’ve run three Shape the Future of Careers workshops, covering financial planning, insurance and early careers, engaging more than 50 participants.

Participants included advisers, paraplanners, early-career leads, learning and development professionals, compliance specialists and recent graduates – all united by a commitment to improving career support.

Using EDII’s Design Thinking approach, participants were asked to reflect on their journeys, identify enablers and blockers and imagine a better career future. Exercises such as personal timeline mapping, the “sailboat strategy” and “crazy 8s” generated rich discussion and insight.

WHAT WE DISCOVERED: SIX CONSISTENT THEMES

1. Falling into it is still the norm. Many entered the profession through chance encounters – temp jobs, family connections or career pivots – rather than informed choice. Awareness of career opportunities in financial planning remains low compared with sectors such as banking or investment, while unclear role definitions often deter talented people before they even start.

2. Progression routes are opaque. Advancement is often reliant on informal networks and unstructured mentoring, while lateral moves are poorly understood. As one paraplanner put it:

SHAPING CAREERS

Many

still fall into financial planning by chance. With talent shortages mounting, the CII and EDII are mapping clearer, more inclusive pathways. Vanessa Riboloni reports on the career insights project

“People don’t realise how many ways you can help clients – it isn’t only about becoming an adviser.”

3. Culture can make or break a career. In nimble, psychologically safe organisations, people can try new things and grow. In rigid hierarchies, however, a single manager or outdated job description can hold careers back.

4. Future-proof skills, not job titles. Digital acceleration and AI will reshape roles, demanding new technical and ethical skills. Leaders cannot promise jobs for life, but they can create

environments where people keep learning for life.

5. Persistent barriers. Women still face obstacles in a male-dominated space. Meanwhile the profession continues to struggle with reputation and recruitment challenges familiar from a decade ago – now compounded by fewer newcomers.

6. Proven enablers. PFS and Chartered Insurance Institute volunteer networks were seen as powerful sources of connection, learning and growth, but participants felt these need greater

promotion. Mentoring and sponsorship schemes were praised as highly effective, yet inconsistent access means many miss out on guidance that could accelerate their development.

THE VISION: WHAT SUCCESS LOOKS LIKE

Despite the challenges, participants shared a compelling vision for the future. One summed it up: “I want young people to choose our profession

deliberately. I want them to see a clear path, whether they’re drawn to client relationships, research and analysis, compliance or leadership.”

The ambitions included:

● Improved visibility: Clear, compelling outreach in schools, universities and careerchange programmes.

● Flexible career architecture: Pathways that support both vertical progression and lateral moves.

● Expanded role recognition: Celebrating the full spectrum of careers beyond clientfacing advice.

● Purpose-led narratives: Showing how every role contributes to customer resilience and societal good.

● Inclusive cultures: Welcoming different backgrounds, learning styles and career aspirations.

● Manager development: Equipping leaders with the skills to nurture talent effectively.

WHAT’S NEXT

In the coming months, we will:

● Share and test insights with members and stakeholders.

● Apply design thinking to prototype potential solutions.

● Begin shaping a shared career pathway framework.

AGEING WORKFORCE

The sector faces a double challenge: an ageing workforce approaching retirement, alongside a weak pipeline of younger advisers:

● 174 advisers under 25 (Feb 2024), down around 60% since 2022.

● 6,210 advisers aged 60+ (Feb 2024), up around 29% since 2022.

Source: FT Adviser

These activities dovetail with the PFS Pathway to Profession, which backs early-career visibility and capability with meaningful funding. An initial £500,000 includes £200,000 to support 500 new entrants taking their first PFS diploma step and £50,000 for an annual youth symposium, alongside nearly £200,000 for partnerships with Coventry University, everywoman, the Duke of Edinburgh’s Award, UCAS and upReach.

The PFS is committed to creating career journeys that support longterm growth. By working with EDII, we are ensuring this project is grounded in insight and aligned with professional standards.

We are grateful to everyone who has taken part so far. Together, we can turn “falling into it” into “choosing it” –and build a transparent, inclusive and future-ready profession. ●

Vanessa Riboloni is professional capabilities and insight manager of the CII

ABOUT EDII

EDII supports the insurance and financial services sectors to succeed in a rapidly changing environment. Specialising in the people side of digital transformation – delivering training and building the mindsets, future-focused skills, capabilities and confidence needed to adapt and grow. Using industry-specific tools, techniques and processes, EDII makes innovation practical, measurable, and human. To find out more, visit: www.edii.group

PARTICIPANTS OF THE SHAPE THE FUTURE OF CAREERS WORKSHOP WITH VANESSA RIBOLONI

s a business improvement specialist working in the UK’s regulated financial planning sector, my role involves daily interaction with firms of varying sizes and complexities. I assess their people, propositions, processes, strategies, profitability and technology to identify opportunities for greater efficiency and enhanced value. Operating at a strategic level with executive and board teams requires a structured yet adaptive approach.

The CII’s Professional Map, particularly at Band 4, offers a powerful framework to guide and evolve my professional practice.

The Professional Map defines Band 4 as strategic, highimpact and future-focused, involving leadership across an organisation or even the wider profession. This aligns seamlessly with the expectations of my role, where I must influence business owners and senior stakeholders to implement systemic change. The Map helps me maintain credibility and structure when engaging with senior decision makers, while also providing a professional development tool that challenges me to continually grow.

APPLYING BEHAVIOURS

The seven behaviours outlined in the Map – curiosity, customer focus, drive to deliver, impact, inclusivity, insight and integrity – resonate strongly with my everyday responsibilities. For example:

● Curiosity at Band 4 encourages me to lead strategic change initiatives and foster a culture of innovation. This supports my mandate to question existing practices and identify novel ways to address inefficiencies.

MAPPING BUSINESS IMPROVEMENT

Kath Harvey explains how the CII’s Professional Map at Band 4 is shaping her role as a business improvement specialist

BOARD LEVEL INFLUENCE

It

strengthens my credibility: being able to demonstrate alignment with a recognised professional framework

reassures

clients, regulators and peers alike

A significant part of my work involves working closely with board members and senior management. Here, the Professional Map serves two purposes:

● A framework for constructive challenge – the competencies allow me to pose questions and challenge assumptions using a professional language recognised by regulated firms. When I recommend changes to proposition design, customer journeys or remuneration models, referencing the Map lends credibility and a shared vocabulary.

● Customer focus reminds me to always put good customer outcomes at the heart of any business improvement recommendations. I help firms reshape their client propositions not only to drive revenue but also to deliver sustainable, ethical value.

● Insight enables me to simplify highly complex business scenarios and identify key issues. This is critical when presenting proposals to boards that must balance regulatory risk, operational capability and long-term planning.

● Impact and integrity are central to the “check and challenge” element of my role. I must communicate persuasively with senior stakeholders while maintaining the courage to speak up when practices fall short of ethical or regulatory standards.

The Professional Map’s three enablers – ethics and compliance; data and technology; and core practice –provide a structured lens to evaluate firms and reflect on my own practices.

● At Band 4, ethics and compliance supports my work in assessing governance and risk. I often advise firms on whether their culture and systems align with FCA expectations. The Map encourages me to go further: to embed a whistleblowing culture; address discriminatory practices; and champion ethical leadership.

● Data and technology positions me as a transformation partner. I advocate for adopting platforms and tools that streamline back-office functions, enhance client experience and unlock strategic data insights. The Map encourages me not just to recommend systems but to lead on technological innovation and drive change across organisations.

● Core practice challenges me to apply deep technical knowledge to a wide range of client needs, while continuously reviewing and enhancing processes. I must stay ahead of developments in regulation, product innovation and customer expectations.

The Professional Map helps benchmark that learning.

● Capability assessment and development planning –I often help firms review the capability of their people and leadership teams. By mapping staff competencies to the Professional Map’s bands and behaviours, I can help HR teams shape targeted development plans and succession strategies that are both measurable and future proof.

EMBEDDING BEST PRACTICE

My involvement doesn’t end at the diagnostic stage. I often remain embedded in firms through implementation, helping translate recommendations into real-world change.

The Professional Map supports this by reinforcing what good looks like across every function.

For instance:

● In client engagement, I draw on customer focus and core practice to ensure all improvements enhance end-client outcomes.

● In process redesign, I rely on insight and drive to deliver to coach internal teams, balancing short-term fixes with long-term transformation.

● In technology projects, the data and technology strand helps frame change management, ensuring people understand both the purpose and impact of digital solutions.

The Professional Map is not just for the firms I advise. It also helps me assess my own development. By reviewing myself against the Band 4 behaviours and enablers, I identify areas where I can grow my impact, particularly in inclusive leadership, ethical governance and digital transformation. It also strengthens my credibility: being able to demonstrate alignment with a recognised professional framework reassures clients, regulators and peers alike.

The CII Professional Map at Band 4 level is a vital tool in my toolkit as a business improvement specialist. It enables me to assess, advise, implement and lead with confidence and consistency. From shaping boardroom strategy to embedding operational improvements, it ensures I deliver value not only for my clients but for the wider profession. By anchoring my work in this future-ready framework, I continue to elevate both my practice and the standards of the sector I serve. ●

Kath Harvey is a Chartered financial planner and head of progress at Melo

omeowners and would-be-homeowners received a boost this summer, from the Treasury and the Financial Conduct Authority (FCA).

In July, the government’s mortgage guarantee scheme was made permanent to help maintain availability of 91-95% loan-to-value mortgages. The goal is to continue to help eligible buyers with a small deposit, get onto the property ladder or to move home. Since its launch in 2021, through to the end of December 2024, 53,261 mortgages have completed through the scheme.

There was other good news on the mortgage front in July: the FCA confirmed rule changes which will make it easier for borrowers to reduce their mortgage term. The rule amendments also simplify the process of remortgaging with a new lender.

Mortgage-advice rules have been overhauled by the FCA too: customers will be able to discuss their options, without triggering the requirement for regulated advice.

Commenting on the changes, Nick Mendes, mortgage technical manager and head of marketing at John Charcol, says: “In recent weeks, the mortgage

MORTGAGES MADE EASIER

Regulatory changes from the Treasury and FCA are set to help current and future homeowners, writes Fiona Nicolson

He adds: “Being able to shorten a mortgage term without a full affordability reassessment removes unnecessary red tape and gives borrowers the chance to reduce the total cost of their borrowing.”

RISKS AND CHALLENGES

However, Mendes sounds a note of caution on shortening the term: “This requires careful judgment. It will almost always mean a higher monthly payment and, for some, that could place strain on already stretched finances.”

He also points to potential risks arising from the adjustment to advice rules: “Removing the automatic trigger that classifies most interactions as regulated advice should make it easier for consumers to explore their options without feeling funnelled into a formal process. But this is not a free pass.

market has seen a series of reforms from the FCA and the government that amount to a meaningful shift in approach.

“Customers must now make a choice to proceed without advice and the responsibility sits firmly with lenders and brokers to assess whether that is in the client’s best interests. The risk is that some borrowers will make complex decisions without the benefit of expert guidance.”

Reflecting on the new, permanent version of the mortgage guarantee scheme, he observes: “This helps sustain access, but does not solve the deeper structural challenges facing those struggling with affordability.”

“For too long, many borrowers who have maintained their payments without issue have found themselves unable to switch to cheaper deals because they no longer met a lender’s affordability model.

“Allowing those borrowers to remortgage with a new lender, provided the payments are not higher than their current payments, is a pragmatic solution that can make a tangible difference to household budgets without undermining lending standards.”

Marie Grundy, managing director of mortgages at West One, takes a similar view: “The scheme excludes new-build properties, which means a significant number of borrowers, particularly first-time buyers, will still struggle to access lower-deposit mortgages. I am not sure it really addresses some of the fundamental barriers to home ownership that currently exist.”

There could be consequences for the property market, observes David Hollingworth, associate director, communications at L&C Mortgages: “The changes are certainly addressing

some of the big issues that borrowers have faced. Of course, boosting the level of borrowing on offer at a time of lower interest rates could mean that house prices will be pushed higher.”

“That is why it will be so important that the government’s commitment to increasing housing supply bears fruit. If supply can’t keep pace with demand, then these positive moves could risk hiking prices higher,” he emphasises.

IMPACT ON ADVISERS

Considering the impact on advisers, Mendes comments: “The landscape is changing in ways that open both opportunities and responsibilities. The easing of remortgage rules will increase the scope for competitive switching, giving us more tools to deliver value for clients rather than seeing them default to a lender’s retention offer.”

Some further fine-tuning of the mortgage process could be beneficial, though, says Rachel Geddes, strategic lender relationship director at the Mortgage Advice Bureau: "It's encouraging to witness the FCA introducing changes aimed at streamlining the mortgage process.

“However, for these adjustments to be truly effective, greater clarity is essential for mortgage brokers on how to implement them. A significant hurdle remains on the legal side of remortgaging, which is widely considered the most time-consuming aspect. Addressing this bottleneck through further review would greatly enhance the efficiency of the overall process.”

Geddes also sees other potential concerns for brokers: "The immediate impact of the changes could potentially complicate a broker’s role. If lenders can leverage the new rules to offer simpler, more efficient options, it could lead to a decline in customers seeking professional advice.

“This presents a challenge for brokers, who are vital in navigating the complexities of the mortgage market,” she concludes. ●

Fiona

Nicolson is a freelance journalist

FROM VISION TO ACTION

Carla Brown ’s PFS presidency is is focused on education, trust and creating opportunities for the next generation, as she tells Luke Holloway

hen Carla Brown stepped into her role as PFS president last autumn, she was clear about her focus: action, not words.

The Chartered financial planner and CEO of Oakmere Wealth Management has centred her presidency on improving financial education and inspiring the next generation to see financial services as a fulfilling and sustainable career.

“The theme of my presidency is not only about improving financial education, which is so important, but also about helping young people see the financial planning profession as an engaging, long-term career option,” she explains.

For Brown, education is the key to building the pipeline of talent the profession needs. “It was always about practical action – not just talking about financial education, but making it happen,” she says.

PATHWAY TO THE PROFESSION

That commitment took a major step forward with the launch of Pathway to the Profession. Developed by the PFS board over many months, the programme comprises initiatives

designed to help people take their first step into a new career – whether they’re seeking fresh purpose or returning after time away.

Brown stresses the initiative is not just about school leavers. “Through the Pathway to the Profession, the PFS is working to make financial services accessible to people from all backgrounds,” she explains. “We’ve partnered with organisations such as upReach, which supports social mobility, and everywoman, which addresses gender imbalance. We’re also working with UCAS, looking at routes into financial services not just via degrees but also through apprenticeships. The goal is to open the doors as widely as possible – this career should be available to everyone, not only graduates.”

Brown recognises that new talent isn’t only young people – career changers and returners have a vital role too. “We’ve seen huge success from career switches into our profession. Historically, many people fell into financial services later in life and that’s still the case. What we’re trying to do is raise awareness earlier and provide clear routes in,” she says.

While progression through the qualifications framework has been strong, with more people than ever achieving Diploma, Chartered or Fellow status, entry-level membership has declined. “For the long-term sustainability of the profession, we need that pipeline of new talent.”

The PFS Professional Map complements these efforts, helping both new entrants and existing professionals identify training needs, develop skills, explore career paths and achieve peak performance. “The PFS Professional Map is already helping people see the variety of careers available and what they need to get there,” says Brown. She stresses the message is clear: the profession is open to everyone – whether starting after school, returning after raising a family, or switching from another career. “We just need to make people aware the opportunity exists.”

Brown is also passionate about developing the “softer” skills advisers need to thrive. That’s where PFS POWER – the community-led CPD initiative launched in 2017 – comes in.

“POWER was created to generate CPD content by practitioners, for practitioners. Technical qualifications are important, but they don’t teach you how to sit with a client, have an authentic conversation, win clients, or handle an annual review. POWER fills that gap.”

The platform now hosts more than 400 webinars, alongside blogs and articles, much of it focused on interpersonal and behavioural skills. “When we meet as a panel, the conversations are so insightful. Sometimes I wish we could just film the meetings, because the learning is that valuable.”

She points to examples such as advisers discussing how to deal with the emotional impact of clients sharing difficult news. “These are the real-life challenges qualifications don’t prepare you for, but which make a huge difference in practice.”

ON THE FRONT FOOT

In March, Brown also became PFS board chair –reestablishing the tradition of the president holding both roles concurrently. She acknowledges that there have been challenges in recent times but is determined to focus on the future.

“The board is focused on clarity and transparency. We want to learn from the past, but not dwell on it. Our priority is building a stronger, more member-focused PFS.”

At the latest strategy day, the board set out the PFS’s

“North Star”, which is a focus on member value, a clearer professional voice, modernised CPD and rebuilding trust. “Trust isn’t rebuilt overnight, but we’re committed to listening and showing members’ interests are at the heart of everything we do.”

Engagement has been a priority for Brown throughout her PFS presidency. “I’ve been trying to get to as many regional events as possible, from summer and autumn roadshows to institute dinners and committee meetings. We’ve also had the Paraplanning Conference and the Business of Advice Conference in London and, of course, we have our flagship National Conference to come in November.”

Brown believes the PFS is moving forward with a renewed energy. “Members can now see tangible results. Pathway to the Profession is a prime example – months of work that have finally come to life. Momentum is building.”

The PFS has also been producing practical resources for members, from guidance on recognising economic abuse, dealing with claims management companies, to a Consumer Duty toolkit. Advocacy is another growing focus, with new appointments strengthening the PFS’s voice with the regulator.

“One thing we need to do better is communicate what we already have. Sometimes members ask for resources that exist but don’t know about them. We need to get better at shouting about the good work we’re already doing.”

STANDOUT MOMENTS

So far in her presidency, two experiences stand out for Brown: the first is the PFS Graduation Ceremony. “Handing out certificates to members who had achieved Chartered or Fellow status after years of hard work was incredible. Seeing the pride on their faces – and their families –was overwhelming.”

The second is the Pathway to the Profession launch. “The energy in the room, the feedback online, the press coverage – it all made it feel like a turning point. It showed we’d really struck a chord.”

Asked what excites her most for the months ahead, it is building on the strong momentum that has been created.

“I want members to feel connected, valued and inspired. But the PFS can’t do this alone. We need members to get involved – mentoring, sharing stories, volunteering in schools, or offering internships. Together, we can shape the profession’s future.”

“It’s a privilege to be president at this time,” she concludes. “We’ve got so many great people in this profession and I’m proud to help them feel part of a community that is building something lasting for the next generation.” ●

Luke Holloway is editor of PFP

STRENGTH IN COMMUNITY

20 YEARS OF PFS LOCAL COMMITTEES

As the PFS marks its 20th anniversary in 2025, Arianne Sheppard looks back at the inception of the PFS Local Committees – formerly known as Regional Committees – and their vital role in the growth and success of the PFS

hen joining the PFS, every individual automatically becomes part of their local PFS Committee. Today there are 26 Local Committees across the UK, spanning from North Scotland to Plymouth and Cornwall. Each one is led by communities of member-elected volunteers, who organise in-person and digital events to help members expand their professional networks and build continuing professional development (CPD) hours.

When the Life Insurance Association and the Society of Financial Advisers merged to create the PFS in 2005, each organisation brought with it its own regional committees. These combined to form the first PFS Committee in London, which hosted all PFS events at the time. Since then, Local Committees have become a cornerstone of the PFS, helping to uphold professional standards and creating opportunities for members to learn, connect and grow.

In their early days, the committees managed local bank accounts to fund events. In time, funding became centralised, though activity has continued to depend on the capacity of local volunteers to deliver events, resources and materials.

SHAPING THE PROFESSION

Today, Local Committees provide a wealth of value to members. This includes CPD seminars and workshops

on technical and market-related topics, sessions on soft and business skills, social and business networking opportunities, guidance on exam techniques and revision, updates on local news, volunteering opportunities, and information about local exam centres.

Volunteers are also highly valued for the insight they bring into the profession, offering a deeper understanding of regional needs – for example, highlighting when particular CPD content is required in a given area. They were also the

Local Committees have become a cornerstone of the PFS, helping to uphold professional standards and creating opportunities for members to learn, connect and grow

The commitment of our members to their communities is a powerful reminder of how our profession supports one another – helping us thrive and serve people from all walks of life

driving force behind the creation of specialist panels, with the concept of paraplanning and financial planning panels first suggested by committee volunteers.

While Local Committees were originally formed as independent groups, collaboration with local institutes of the Chartered Insurance Institute (CII) has grown organically over time. The Isle of Man is a unique example of a committee established jointly by the PFS and local institute – a model shaped with the support of past PFS president Sharon Sutton.

Committees working closely with local institutes have benefited from access to CII funding. To support balance across the network, the PFS introduced an annual £10,000 fund for those committees without access to local institute resources.

Collaboration continues to develop. The Insurance Institute of Aberdeen recently rebranded as the Aberdeen Institute of Insurance and Financial Planning, better reflecting the breadth of its membership and the changing landscape of the local profession. In London, the Local Committee is also exploring greater synergy with the Insurance Institute of London, ensuring members can help shape what works best for them locally.

THE LIFEBLOOD OF THE PFS

“For nearly 20 years the Local Committees have brought members together, created valuable learning opportunities, and expanded professional networks,” Carla Brown, PFS president and chair, tells us. “Run by member-elected volunteers, they play a vital role in shaping the future of our profession while ensuring the PFS remains rooted in its members and committed to the highest standards.

“What inspires me most is the hunger across our profession – not just for technical knowledge, but for better ways to serve, communicate and collaborate.

As we celebrate this 20-year milestone, it’s fantastic to recognise the success of our Local Committees and the power of financial planning to change lives.

“The commitment of our members to their communities through Local Committees is a powerful reminder of how our profession supports one another –helping us thrive and serve people from all walks of life,” says Brown.

Above all, the Local Committees represent the passion, professionalism and dedication of PFS members. They are the heartbeat of the PFS – creating opportunities, driving innovation and building a stronger profession for the benefit of clients, communities and colleagues across the UK. Their success is a testament to the commitment of volunteers who give their time and energy to support others and it is thanks to them that the PFS continues to grow and thrive. ●

Arianne Sheppard is PR executive of the CII

VOLUNTEER TO MAKE A DIFFERENCE

From learning to networking, there are plenty of ways to get more out of your PFS membership, as Simon Webster reveals

he work of the PFS is underpinned by a vital network of volunteers across the UK. These communities bring together financial professionals to connect, collaborate and enhance their expertise. Together they provide access to tailored events, continuing professional development (CPD) opportunities and networking at both local and national levels.

PFS LOCAL

Offering tailored support across 26 UK regions, each PFS Local region is steered by a committee of member volunteers. Collectively, they deliver a programme of services which typically includes:

● CPD seminars and workshops covering technical and market-related topics

● Access to ‘soft’ and business skills sessions

● Social and business networking events

● Guidance on exam techniques and revision courses

● News and updates

● Volunteering opportunities

● Information on local exam centres.

So far in 2025, our PFS regions have delivered 34 events and webinars, which have been attended by 1,260 individuals.

COULD YOU VOLUNTEER IN YOUR REGION?

Our regional committees are always ready to welcome new faces and fresh perspectives. Here are just three reasons why volunteering could be worth considering:

● Play a part in shaping your PFS Local region’s activity: From CPD to social, sports to charity, there are many different activities you can play a part in delivering.

● Make new connections: Working alongside professionals from other personal finance businesses can open doors to new opportunities. Your network is your net worth.

● Learn new transferable skills: These could include event management, member communications or public speaking.

To find your nearest region, discover what’s coming up, and even consider joining as a volunteer, visit: thepfs.org/ membership/pfs-local-committees Alongside PFS Local, two further volunteer communities operate on a national level.

PFS POWER

POWER supports financial planning professionals with high-quality, accessible CPD through expert-led

webinars and resources. It aims to enhance technical knowledge, professional skills and industry insights, helping members stay ahead in an evolving financial landscape. Its regular programme of webinars is a particular strength; current and recent webinars include:

● Press pause to reset and refocus

● How quality questions unlock client motivation

● How ‘the 7 questions framework’ builds trust

● Five themes that are still critical in 2025.

Another recent highlight from the POWER panel is ‘POWER Planning’ – consumer outcomes-focused financial planning. To find out more about this, register for a webinar, or take things to the next level by contacting the panel to volunteer, visit: pfspower.org

PARAPLANNING COMMUNITY

The PFS’s paraplanning panel was established in 2015. Our dedicated panel of volunteers are passionately committed to enhancing skills, techniques and training, driving forward the PFS’s dynamic programme of CPD for paraplanners. Together, these experts play a pivotal role in ensuring the interests and voices of paraplanners are not just heard but championed. Search for ‘PFS Paraplanners’ on LinkedIn to join the latest discussions and to get to know the current panel of volunteers.

GET INVOLVED

Find out more about our volunteer communities at: thepfs.org/ membership/communities ● Simon Webster is membership marketing manager of the PFS

Discretionary trusts offer a way to help clients safeguard assets for the next generation while managing inheritance tax. Marcia Banner explains how

SMART SUCCESSION

ncreasing numbers of people are facing inheritance tax (IHT) liabilities on death due to several factors. These include frozen thresholds (the nil rate band and residence nil rate band are now both frozen at current levels until at least 2030), the curtailment of reliefs such as business and agricultural relief at 100% (which will from 6 April 2026 be capped at £1m in any given seven-year period) and pension pots becoming subject to IHT at 40% from April 2027. As a result, a greater proportion of clients will be seeking advice on how best to plan for or reduce those liabilities.

Farmers will be especially affected by the changes to business and agricultural relief. Typically, there will be a desire to pass farms down through generations intact and often there will be few liquid assets outside of the farming business with which to discharge the IHT liability. Those affected by the pension changes could find themselves facing additional liabilities on their residual estates due to the loss of the residence nil rate band – in addition to the unanticipated liability on the pension fund itself.

This article examines options for maximising the amount that passes tax-efficiently down to the next generation and beyond.

TAX-EFFICIENT WILLS

Tax-efficient wills are the cornerstone of any estate planning strategy and, with an ever-changing tax landscape, it is vital that these are reviewed regularly to take account of legislative and circumstantial changes. For example, a will drafted prior to April 2017 may include provisions that are incompatible with the residence nil rate band. These could include a gift of the home (or residue including the home) to a discretionary trust on first or second death, or to grandchildren on reaching a specified age – which are issues that can potentially be overcome with a few simple tweaks. Discretionary will trusts of the nil rate band also remain relevant in some instances. For married couples or civil partners with joint estates above or approaching £2m, leaving an amount up to the nil rate band to a discretionary trust on first death will reduce the amount passing to the surviving spouse and help to keep the joint estate on second death down to below the £2m figure above which valuable residence nil rate band starts to be lost.

Example

Jack and Jill have a joint estate worth £2.7m. If Jack dies leaving his share of the joint estate entirely to Jill, there will be no liability on first death but on second death the liability will be:

£2,700,000 - £650,000 = £2,050,000 x 40% = £820,000.

No residence nil rate band will be available to the estate as it is tapered away at a rate of £1 for every £2 by which the estate exceeds the taper threshold to nil.

By contrast, if on first death, Jack has left £325,000 to discretionary will trust, and only the balance to Jill, Jill’s estate on second death would be £2.375m. This would reinstate £187,500 of residence nil rate band and the overall liability on the joint estate would be reduced to £745,000.

Married clients with business assets that are likely to be sold after death, as well as those who have previously been widowed, may also be able to make significant IHT-savings by leaving business assets and/or nil rate sums to a trust on first death. A trust will also have its own £1m cap for the purposes of 100% business relief post-April 2026, so leaving £1m of e.g. unquoted shares in a trading company (with the remainder passing to spouse and/or children) can help mitigate liabilities as the business passes down through generations.

In some cases, wills may be out-of-date by the date of the testator’s death or may have been drafted without considering the impact of a large inheritance on the estate and IHT position of adult children. In this scenario, a deed of variation could help to skip a generation for IHT purposes without the original beneficiary needing to forfeit access to the inheritance. This is down to IHTA 1984, s142 which provides that where property or funds that derive from an inheritance are gifted within two years of the death and certain prescribed formalities are adhered to, the gift is treated for IHT purposes as if it had been made by the deceased. This means that the estate of the original beneficiary is reduced immediately by the full amount of the gift (i.e. no requirement to survive seven years); if the gift is made to a trust, the original beneficiary can be included as a possible beneficiary under the deed of variation trust and so retain full access to their inheritance without any gift with reservation issues. The planning opportunity will be lost once the two-year period has expired though – so it is vital to act quickly where this opportunity presents itself.

Deeds of variation can also be used to retrospectively implement first death nil rate band planning or planning with business assets where the estate has been left wholly to a spouse thereby either taking the spouse’s estate above the £2m threshold for residence nil rate band or wasting the opportunity to maximise business relief at 100%.

LIFETIME GIFTING

IHT is payable on the value of an estate on death. It therefore follows that one of the most effective ways to reduce a prospective IHT liability will be to reduce the estate during lifetime. Lifetime gifts will fall into one of three categories: exempt, potentially exempt or chargeable.

Where an exempt gift is made, the gifted amount will leave the estate immediately and will not impact on other planning. The most well-known lifetime giving exemptions from IHT are the annual exemption of £3,000; and the normal expenditure out of income exemption which allows an individual to regularly give away surplus earned, pension or investment income without restriction provided that certain conditions are satisfied. This second exemption is particularly valuable as there is no cap on how much can be given and the amounts gifted can vary from year to year as long as some sort of pattern can be demonstrated. This could, for example, be something as simple as the client resolving to give away “a third of my rental income each year” or “the annual dividend income paid on my shares in XYZCo Ltd”. Alternatively, the pattern could be linked to regularly occurring events such as grandchildren’s birthdays or payment of school fees or life insurance premiums. It is, however, important that the donor does not resort to capital (such as withdrawals from an investment bond) to maintain his standard of living having given away income otherwise the exemption will be denied and the gifts will be treated as potentially exempt transfers (PETs) or chargeable transfers as appropriate.

With the announcement that many previously IHTexempt pension funds will be subject to IHT from April 2027, many pension savers are considering the merit in drawing down from their pension and giving the drawn down income away under the normal expenditure out of income exemption. Drawn down pension income is likely to be taxable in the hands of the pension member; however, provided the surplus income exemption is given (and death doesn’t occur before 6 April 2027), the immediate IHT saving will compensate for this. Drawn down pension income would also be taxable in the hands of the nominated beneficiary if the scheme member died after age 75. It should also be noted that there is no requirement for income to be taxable to qualify for the exemption. It is understood that any regular withdrawals from a pension arrangement (including tax-free cash) can therefore be considered income.

However, a one-off withdrawal of tax-free cash made from a pension plan and gifted to an individual or trust will clearly not satisfy the regularity requirement and so not qualify. Ultimately, of course, the exemption will need to be confirmed by HM Revenue & Customs and there is always a possibility that gifts of income made only for a short period of time will not qualify; but if regular income withdrawals are gifted over several years, there is no reason why they should not.

Gifts that do not fall within one of the exemptions from inheritance tax will be either potentially exempt or chargeable depending on whether they are made directly to another individual or via a trust for additional control and flexibility. Either way, for a gift to be treated as made ‘outright’ – and so be effective for inheritance tax purposes – it will be important that the donor can comfortably afford to make the gift in the knowledge that he or she will not be able to access the gifted funds if circumstances change. While potentially exempt and chargeable transfers temporarily use up some or all of the donor’s nil rate band for seven years, they reduce the estate with immediate effect for residence nil rate band purposes. This means that where the estate is above the £2m but below it after the gift, gifting can create immediate tax savings even if the gift is not survived by seven years.

THE USE OF TRUSTS

Discretionary trusts are a popular choice for parents or grandparents looking to put funds aside for future generations – primarily due to the flexibility, control and asset protection benefits that they can offer. However, when used in conjunction with income-producing assets that are chargeable to capital gains tax, these advantages may be overshadowed by the higher tax rates and additional administration and reporting obligations faced by the trustees.

If discretionary trusts are used to hold unit trusts or property, for example, income will only be assessed on beneficiaries if it is actually distributed to them. If income is accumulated within the trust, it will be taxed at the trust rates: 39.35% in the case of dividend income, and 45% in other cases; while gains made by the trustees on the disposal of chargeable assets will be assessed on the trustees at the trust rate of 24%. An in-specie distribution (i.e. transfer of the unit trust or other chargeable asset) to the beneficiary will also be a disposal, however, in this case, it should be possible for the trustees and beneficiary (if an adult) to claim gift hold relief to pass the gains on to the beneficiaries who will each have a capital gains tax (CGT) exempt amount which is at least double that available to the trustees (although at £3,000 each year per individual this strategy no longer produces the same level of tax saving that it once did).

By contrast, the unique features of the chargeable event regime of taxation that applies to UK and offshore bonds can make them particularly attractive as trust investments. Bonds can offer scope for tax-efficient accumulation of investment income with the ability to adjust the assets of the underlying investment fund by switching between funds with no tax implications. Furthermore, if the trust is a discretionary trust, and the trustees do not intend to make regular distributions, there is no ongoing liability to tax at the high trust rates and no need to complete tax returns providing tax efficiency and administrative simplicity.

Tax liabilities will, of course, occur when chargeable gains are realised and if these are made by trustees of a discretionary trust, they will be assessed to tax on the settlor if living and UK resident or otherwise the trustees if UK resident.

Trustees looking to make a distribution to a beneficiary could consider assigning the bond (or clusters) to the beneficiary before surrender. No chargeable event will arise on the assignment and, in many cases, a lower tax bill will result on surrender in the hands of the beneficiary who will frequently pay tax at a lower rate than the settlor or trustees and also benefit from top-slicing relief.

Of course, if the intended beneficiary is a minor, an assignment to the beneficiary will not be appropriate; however, in this scenario, an irrevocable appointment of benefits under the trust to the minor prior to surrender can achieve the same tax effect without changing the legal ownership of the investment (which will remain with the trustees who can then complete the withdrawal request in the usual way but with the gain assessed on the absolutely entitled minor beneficiary). The exception to this is where the settlor of the trust is still living and is the parent of the minor beneficiary. Here, the gain would be assessed on the parent settlor in accordance with the ‘parental settlement’ rules.

Example

Nicola and Marcello are looking to make tax-efficient provision for their daughter Elena who has just started at a good state secondary school. They plan to send Elena to an independent sixth form college to complete her A levels and, conscious of the financial pressures she is likely to face as a young adult, would like to help her avoid building up too much debt while she is at university. Like most parents, they would eventually like to be able to help her get onto the property ladder as well, if they are able. With all of this in mind, they decide to invest a lump sum of £250,000 for Elena’s benefit.

They create a discretionary trust to hold the investment and give them added flexibility and control which means that they each make a chargeable lifetime transfer of £125,000. The trust fund is invested in a bond. After six years, the trustees withdraw £14,000 each year for two years to fund Elena’s sixth form college fees. As the amounts withdrawn are within the cumulative 5% tax-deferred allowance, there are no immediate tax consequences for Elena’s parents, the settlors.

Once Elena has finished her A levels, the trustees can either continue to use the tax-deferred allowances or they can assign cluster policies to Elena to assist her with university costs, depending on the amounts required.

Under a discretionary trust a “periodic charge” is due every 10 years. Broadly speaking a charge will only arise if the total of the value of the trust fund at the anniversary date (plus any amounts distributed in the preceding 10 year period) exceeds the trust’s nil rate band. If this value does exceed the trust’s nil rate band, the charge is at 6% on the excess.

Let’s assume that when the bond reaches its first 10-year anniversary, it is worth £273,000. Although the amounts distributed to Elena within the preceding 10-years are added back in when calculating the 10year charge, the trust, having been created by joint settlors, benefits from two nil rate bands and so no IHT periodic charge arises even when these previous distributions are taken into account.

In year 15, Elena wishes to buy a property. The bond, now worth £305,000 and standing at a gain of £83,000 can be assigned to her without any tax consequences for either her parents or for the trustees, allowing her to encash with reference to her own personal income tax position. As she is a basic rate taxpayer and the bond is an onshore bond, Elena is able to fully surrender the bond, taking advantage of top-slicing relief, to avoid any tax charge on the bond gain and only a minimal additional tax charge on other income as a result of a reduction in her personal allowance.

As a general rule of thumb, then, bonds tend to work well with discretionary trusts as there is:

● No ongoing income tax liability for trustees/settlor;

● The trust administration and reporting is simplified; and

● The bond provides tax-efficient distribution options.

But the potential income tax savings need to be balanced against the possibility of IHT exit charges on high value trust funds – especially if regular distributions are likely.

Until 6 April 2026, there is also a limited opportunity for business and farm owners to transfer property to a discretionary trust and benefit from 100% relief on the transfer regardless of the value transferred. CGT hold over relief should be available in respect of the transfer and the trust itself will also benefit from a £1m allowance. It should, however, be noted that if the transferor dies after 6 April 2026 and within seven years of the transfer, the cap will be applied retrospectively against the value transferred meaning that less of the agricultural and/or business property remaining in the estate will benefit from relief at 100%. Those in a position to be able to take advantage of this window will need to take professional tax advice to determine the viability of the planning in light of their particular circumstances.

CONCLUSION

With frozen thresholds and forthcoming tax changes, more clients will seek advice on reducing IHT liabilities and helping their children or grandchildren progress through the financial landscape tax-efficiently.

Ensuring that wills are kept up-to-date, lifetime gifts are made where possible and that the next generation is involved in any planning that is carried out will ensure that wealth can be passed as tax-efficiently as possible from one generation to the next.

The use of investment bonds in IHT planning can make decumulation and wealth transfer even easier due to the unique income tax regime to which they are subject. And where the estate is largely tied up in property, agricultural or business assets, high value pension funds or other assets standing at a significant capital gain, protection should not be overlooked. A life insurance plan written in trust can provide a straightforward (and depending on age and state of health of the life/lives to be assured, cost-effective) solution to an IHT problem with premium payments treated as exempt gifts to the extent that they can be funded out of surplus income. ●

Marcia Banner is a consultant at Technical Connection

THE POWER OF CASHFLOW PLANNING

Sam Patterson explores cashflow planning – and why the conversation matters more than the numbers

n the past few years, the use of cashflow planning software has become far more commonplace in the financial planning profession. The software, and its output, offer the opportunity for clients and financial planners to visualise and map out the client’s financial journey into the future. Yet despite the use of cashflow software becoming more common, there is much less consistency in how this software is used with clients.

PFS POWER recently hosted a three-part webinar on the use of cashflow planning. The evening before the first webinar, I mentioned it to my wife over dinner. “What on earth is cashflow planning?” was her response.

I then provided a brief explanation of what cashflow planning software is, how it works, what you need to input and what the output looks

like. But what followed was far more interesting – we began a meaningful conversation about our own financial future.

Should we start putting aside some money for our son? How much and when would we like him to get it? Do we want to move house in the future and, if so, how can we start to prepare for that? And finally, when do we want to begin to slow down?

It’s not as though we had never considered these things before, but we are often so busy with everyday life that it can be difficult to take a step back and think about where we would like our lives to go.

BEYOND THE NUMBERS

Cashflow planning, while underpinned by numbers and data, is actually much more than that. It’s an opportunity for clients to visualise their future financial selves, as it did for my wife and me. It’s a chance to step back from everyday life and properly consider what the future may look

like. The most powerful output from introducing cashflow modelling isn’t the software or a chart. Instead, it’s the conversations that are prompted with clients as a result.

Across the three webinars, while we had all used various types of cashflow software, we had each experienced the incredible impact that cashflow planning can have on clients. Not just in terms of understanding the numbers that underpin the financial plan, but also because it provides an insight into how clients feel about their money and what they want it to achieve.

Whether decades from retirement or already financially secure, the act of showing someone a visual that could summarise their future financial self was consistently described as a lightbulb moment. Clients became more engaged in the planning process as a whole. They asked better questions. They took ownership of their goals. And, crucially, they felt more in control.

MARINA LABELLA / IKON IMAGES

STRENGTHENING RELATIONSHIPS

There was also strong consensus throughout the webinar series that cashflow planning deepens our relationships with clients. It shifts the dynamic from financial planner and paraplanner on one side, with the client on the other, into a collaborative partnership. Cashflow planning moves beyond transactional advice – it’s about shaping a client’s lifetime journey. That’s why, regardless of approach, we all agreed it belongs centre stage in human-focused financial planning.

We did have differing views, however, around how the visual output was used after client meetings. Some provided copies of projections as part of the usual post-meeting actions. Others used select outputs as part of a wider piece of work, such as an inheritance tax planning strategy report. And some tended not to provide cashflow projections separately at all.

And that’s fine. In a way, it’s what makes our profession great. While we have regulations and set parameters, financial planners and paraplanners still have flexibility in how they communicate with their clients.

It’s this very idea that underpins the PFS POWER community. We are all financial planning practitioners involved in the advice-giving process. We are united around humanfocused financial planning and seek to achieve five consumer outcomes: clarity, connection, choice, control and confidence. After all, isn’t this exactly what we as financial planning practitioners should strive to achieve for our clients?

To watch the three webinars, visit: www.pfspower.org/#cashflowseries

To find a massive resource of webinars and articles for all professionals wanting to improve client relationships, visit: www.pfspower.org ●

Sam Patterson is a member of the PFS POWER Panel

K investors now hold a smaller share of UK equities in their portfolios than at any point on record, with more than £1.9trn withdrawn from UK-listed companies since 2000.

In July, Chancellor Rachel Reeves pulled back from proposals to restrict the amount savers could put into cash ISAs,

PUTTING UK EQUITIES INTO P E R S P E CT I V E PERSPECTIVE

Dewi John and Tajinder Dhillon assess the prospects for the UK equities market

in the hope that this would be diverted to other assets, not least UK equities. This remains a government objective, however, with a Treasury spokesperson commenting: “Our ambition is to ensure people’s hard-earned savings are delivering the best returns and driving more investment into the UK economy.”

Initiatives to promote this include the British Business Bank’s British Growth Partnership, aimed at encouraging more investment from UK pension funds and other institutional investors into the fastest-growing and most innovative British companies, and this year’s Mansion House Accord, to encourage UK pension funds to invest more in UK Plc.

This is no easy task. The trend away from domestic equity investment has been underway for decades.

According to the most recent Office for National Statistics (ONS) figures, in 1981, UK individuals owned 28.2%, ‘other’ UK holdings, such as pension and insurance funds owned 68.25%, while foreign ownership was 3.6%. By 2022, those figures were 10.8%, 31.5% and 57.7% respectively.

UK individuals and institutions’ ownership of the UK stock market has fallen from 96.4% in 1981 to 42.3% in 2022. UK pension schemes have reportedly dropped their UK equity exposure from about 50% to 4% over the course of this century.

The UK’s shrinking percentage of global indices has further squeezed allocations. For example, in December 2008, the US had a weighting of 44.42%, followed by Japan at 10.01%, and then the UK at 8.11% in the FTSE All-World index. In July 2025, those weightings were 63.68%, 5.54% and 3.38% respectively.

Global indices, however, are not a true reflection of the global economy. China has a weighting of about 2.5%: lower than Nvidia, Microsoft, Apple and Amazon. The UK still has a weighting greater than Amazon, if not Apple. China’s GDP is about 17% to 19% of world GDP and has the largest share of global production, at about 30%. There is increasing concentration

Source: LSEG Lipper

Global, UK and US equity fund flows (GBP bn)

Source: LSEG Lipper

CHART 1

CHART 2

risk within major global indices. Risk should not be reduced to ‘active bets’ against an index.

We looked at how UK investors’ allocations between UK, US and global equity funds (summing flows and net assets for these national classifications and their income variants) have changed over the past two decades. In 2004, UK investors held £116.96bn in Equity UK and Equity UK Income funds, compared to £18.99bn in their global equivalents, and £14bn in US. UK equities were therefore 78% of the total. In 2024, that figure was 27.3%.

That’s reflected in flows to these classifications (see chart 2). Between 2024 and July 2025, global funds attracted £102.62bn, US funds £31.65bn, while their UK equivalents have seen outflows of £101.99bn. That is heavily skewed to the period from 2021, where UK funds shed £95.62bn –again, reflected on the jump in relative assets in chart 2.

The UK, which is a value-tilted market, has suffered from the outperformance of tech stocks as equity markets rebounded from the global financial crisis, and investors piled first into the FANGs (Facebook, Apple, Netflix and Google) pre-Covid, then into the Magnificent Seven.

FTSE 350 index weightings illustrate this value tilt, with Financials, Consumer Staples and Industrials making up more than half of the index. Technology has one of the lowest

weightings – less than 4% – and has just about managed to double its weight in the past 15 years. This limited exposure combined with modest growth in weight has contributed to UK investors going global to access largecap growth stocks.

The Russell 1000 is the leading marketplace for investors seeking growth exposure. Technology holds the largest weighting, representing more than one-third of the index. Separately, the Magnificent Seven’s combined weight is near an all-time high at 32.4%, having quadrupled in the past decade. The group’s weight within the Russell 1000 Growth index has reached a record 61.9%.

The Russell 1000 has outperformed the FTSE All World and FTSE 350 indices by 201 and 331 basis points respectively during the past three decades. In the past 10 years, this spread has widened further to 264 and 651 basis points, with the Russell 1000 delivering an annualised total return of 13.6% compared to 11.0% and 7.1% respectively.

This outperformance helps explain the valuation premium that US equities command over the rest of the world. The forward P/E of the Russell 1000 is about 22.5x (~20.2x ex. Mag-7), a level last seen in late 2021 and placing it in the 96th percentile in the past 20 years. With a forward P/E of 12.7x for the FTSE All Share index,

the relative valuation premium of US equities has been rising steadily since 2016, peaking at nearly 2x last year before falling to 1.74x, reflecting UK outperformance year-to-date.

Net profit margins for the Russell 1000 are at a record 12.9% compared with 10.4% for the FTSE All Share. Looking ahead, the Mag-7 are expected to deliver aggregate net profit margins of 26.5% in 2026, alongside revenue and earnings growth forecasts of 12.3% and 15.9% respectively. The group continues to surpass market expectations, irrespective of the high bar set by analysts.

Where does that leave the UK equity market? Valuations are relatively attractive, with YTD outperformance – albeit, in an environment where market leadership changes frequently. It’s possible that in a market so heavily sold, initiatives such as the British Growth Partnership and the Mansion House Accord might feed enough capital to companies to support valuations, helping foster a positive feedback loop between performance and flows.

There are, of course, many ‘what ifs’. As ever, any definitive answer will only be seen in the rear-view mirror: the owl of Minerva flies only at dusk. ●

Dewi John is head of research EMEA at LSEG Lipper and Tajinder Dhillon is senior manager, earnings and equity research at LSEG Starmine

Accelerate your learning by using our eLibrary to search and access eBooks, electronic articles, reports and other online resources.

INSIDE IR35

The UK’s off-payroll working rules aim to ensure contractors pay the same tax as employees – but they’ve reshaped the contracting world in the process

he off-payroll working rules – otherwise known as IR35 – were introduced in 2000.

The rules ensure that a worker (also known as a contractor) pays broadly the same income tax and National Insurance contributions (NICs) as an employee would.

The rules apply if a worker who provides services to a client through their own intermediary, such as a limited company, would be considered an employee if they were providing their services directly to that client.

Without IR35, someone working through a limited company (also known as a personal service company, or PSC) could pay themselves mainly through dividends, which attract lower tax rates and no NICs, resulting in significantly lower tax bills.

Those within the scope of these rules are essentially taxed in a similar way to employees – so income tax and NICs are deducted at source. By contrast, those outside the scope of these rules are considered self-employed, are responsible for dealing with their own taxes and can therefore benefit from greater tax efficiency.

The rules apply on a contract-by-contract basis. A worker may have some contracts which are within IR35 and some which are not. For the purpose of IR35, a contract can be a written, verbal, or implied agreement between parties.

The person responsible for determining whether the worker is employed for tax purposes depends on whether the client is:

● in the public sector;

● in the private or voluntary sectors;

● a small business.

In most cases, the client will be responsible for determining the employment status of the worker. However, if a worker provides services to a small client outside the public sector, the worker’s intermediary is responsible for deciding the worker’s employment status and whether the rules apply.

The IR35 rules are unlikely to apply to those employed by an umbrella company.

DETERMINING STATUS

Several factors are considered when determining IR35 status, including:

● Mutuality of obligation – is there an obligation for the client to provide work and for the worker to accept it?

● Control – does the client control how, when and where the work is carried out?

● Substitution – can the worker send someone else to carry out the work?

● Pay – who decides how the worker will be paid?

● Benefits – are any corporate benefits awarded, or is there reimbursement for expenses?

HM Revenue & Customs provides a tool called CEST (check employment status for tax) to help determine status based on information provided by the client. The tool can also be used to check whether changes to contractual terms or working arrangements may alter a worker’s employment status. IR35 has significantly impacted the UK contracting industry. Many contractors have seen a reduction in earnings and some companies have avoided using contractors altogether due to the added compliance burden. That said, these rules are about fair taxation – ensuring those working like employees pay tax and NICs like employees, even if they do so through a company. ●

Technical Connection

n 2012, the St. James’s Place (SJP) Academy was launched with a clear mission: to attract, train and develop the next generation of financial advisers. From the outset, we recognised this mission would be stronger in collaboration with an established professional body. That’s why we partnered with the Chartered Insurance Institute (CII) –a relationship that, more than a decade later, continues to deliver measurable benefits for both advisers and clients.

This partnership has given academy participants a structured, accredited pathway into the profession. From technical knowledge to ethical standards, the CII has been instrumental in ensuring advisers meet the highest levels of professionalism and competency. Since that first cohort in 2012, our collaboration has enhanced the skills base within our partnership while also increasing diversity, lowering the average age profile and improving accessibility to the profession.

A DECADE OF PROGRESS

In partnership with the CII, the SJP Financial Adviser Academy is building a more diverse profession – and securing the future of financial advice. Gee Foottit explainshow

service – but also an opportunity. Working with the CII to deliver a recognised qualification framework, we attracted high-calibre individuals from a wide range of careers, locations and life circumstances.

When the academy began, the profession faced an ageing adviser base and limited routes for new entrants. This created challenges for succession planning and continuity of client

Since 2012, the academy has grown from one to four regional programmes, and in 2020 it became a nationwide initiative. Accessibility has been a priority: while in-person training remains valuable, online learning now enables candidates across the UK to participate without geographical constraints. This flexibility proved vital during the pandemic and continues to broaden our reach.

A MORE DYNAMIC PROFESSION

meeting clients where they are – both literally and figuratively.

DIVERSITY BY DESIGN, NOT BY ACCIDENT

One of the most notable results of the academy is the shift in age profile. The average age of academy participants is currently 38 – two decades younger than the wider profession. As graduates join our partnership, they reduce the overall average age by around 10 years compared to the national figure. Younger advisers often relate more closely to the emerging needs, lifestyles, and preferences of the next generation of clients. They blend relationshipbased advice with modern digital tools,

We believe the financial advice profession should reflect the society it serves. The academy is designed to welcome entrants from varied backgrounds, helping diversify the profile of advisers. Currently, 28% of participants are female – above the industry average. This improves representation, as diverse advisers are better placed to understand and serve varied client needs, fostering trust and long-term relationships. Our diversity also extends to professional backgrounds, with participants joining from sectors including banking, accountancy, teaching and the armed forces. This breadth of experience enriches our culture and brings fresh perspectives to client service.

STRENGTHENING SUCCESSION AND CONTINUITY

A key strategic benefit of the academy is its role in succession planning. With many experienced advisers approaching retirement, ensuring

clients receive seamless, long-term service is essential.

Our pipeline of skilled, qualified advisers supports this. By training individuals to join existing practices or establish their own, we are building a sustainable future for advisers and clients alike. The diversity and youthfulness of academy graduates equip them to build multi-generational

foundation, regulatory understanding and ethical principles.

Beyond qualifications, the CII’s emphasis on continuous professional development aligns with our belief that advisers should refine their skills to meet evolving client needs and market dynamics.

LOOKING AHEAD

The financial advice profession is experiencing a generational shift as older advisers retire and new entrants take their place. Our experience since 2012 shows that structured, collaborative training – built on diversity and professionalism – is the best way to secure a strong, client-focused future.

relationships, a critical factor in client retention and growth.

CII’S ROLE IN ELEVATING STANDARDS

The CII partnership has been central to embedding professionalism from the outset. Rigorous qualification pathways ensure graduates enter the partnership with a strong technical

With the CII as our long-standing partner, we will continue to expand the reach and accessibility of the academy. The integration of advanced digital learning tools, such as Redmill Advance, allows us to engage talented individuals regardless of location or circumstances. By combining interactive webinars, video modules, reading materials, and case studies, we can support a variety of learning styles. Paired with the dedicated guidance of our academy trainers, relationship managers and development managers, this ensures every candidate can thrive and progress with confidence.

We are proud of the progress made in the past decade: a younger, more diverse and highly skilled adviser community; a strong succession pipeline; and an unwavering commitment to professional standards. Most importantly, this progress not only delivers advice that is relevant, relatable, and rooted in trust, but also helps address the advice gap and make high-quality financial advice more accessible across society.

We are proud of the progress made in the past decade: a younger, more diverse and highly skilled adviser community; a strong succession pipeline; and an unwavering commitment to professional standards

The journey from 2012 to today has been one of shared vision and shared success – and with the CII by our side, the next chapter promises to be even more impactful. ●

Gee Foottit is recruitment campaigns and partnerships lead at SJP

or me, objectives are a fundamental part of giving advice and one that we consistently fall down on.

I’ve been considering why this is. We have the SMART framework that should result in a good objective. However, poor or generic objectives are still an issue.

I’ve recently started to try and think about objectives differently. Beyond SMART. Trying to make it less technical and more… human.

I've been exploring the word “objective” and what it really means in relation to clients and their money. I came up with three components to the way a client thinks about what they want to achieve:

CATEGORIES OF CLIENT OBJECTIVES

AIM

An aim relates to something specific that they want to achieve.

“I want to fund my grandchildren’s school fees for the next five years. This will cost approximately £50,000 a year.”

You know all of the detail. It’s all defined.

HOPE

A hope is less solid and is usually aspirational. Where the “aim” is an expectation, a hope refers to something you want to happen. It’s less certain, but you are moving towards it.

“I would like to be able to pay for some future events for my grandchildren, maybe a house deposit or a wedding.”

This allows you to capture a client’s less well-defined goals. It also gives you some context for that longer-term investing. Eventually these should filter down into a more concrete aim.

PURPOSE

Purpose is connected to values and is, perhaps, more spiritual in nature. It is intrinsically linked with a belief system. Our core beliefs, wherever they come from, shape how we see and interact with the world. They also inform how we behave.

that the grandchildren should fend for themselves as this will teach them resilience and ambition.

Whatever it is - understanding a client’s belief system can be invaluable. It can help to build trust and a deeper connection. It’s not all about spending money.

IMPACT

Understanding the deeper motivations can add context to an objective. It can also open up other avenues.

Can you challenge their ambition to go beyond helping their grandchildren? Their aspirations could end up with charitable giving or maybe lead to discussions about their grandchildren's future and sustainable investing, exploring other ways to make an impact.

PARAPLANNER’S PERSPECTIVE

Paraplanners have a part to play in creating better objectives. Often, we will be the ones trying to link advice to objectives. We have a duty to ensure that the advice is suitable and this can only come from good objectives. In my experience, advisers will welcome being challenged. They will value your input. There is scope to guide advisers from the unique perspective we have.

These are all different ways you could categorise what a client objective is and they all interact to give a broader picture.

Purpose can be an overarching layer and can contextualise the why and the how. For example, it may be a desire to invest ethically, or it might be a belief

OBJECTIVELY DIFFERENT

Greenwood on how

Constructive feedback helps us all grow. Giving good advice is a team effort and by working together, we can help improve the quality of advice and the client experience.

However, we can’t expect every objective to be perfectly SMART every time. We need to be adaptive and flexible.

By exploring these wider aspects, you can build on the traditional SMART objective to create something much more meaningful. Something that reaches to the core of a client's belief system and enables you to consider solutions that empower their purpose. ●

Philip Greenwood is head of technical consulting at EQ Investors and member of the PFS Paraplanning Panel

RELIEF AT LAST

Key questions answered on life interest trusts and pension investment planning

QA life interest will trust is being wound up prior to the death of the life tenant. The parties involved have negotiated that the life tenant receives the residence from the trust, together with a portfolio of open-ended investment companies (OEICs) and the life interest ceases. Please confirm if holdover relief would be available on the OEICs? And, presumably, private residence relief will apply to her home.

Are there any inheritance tax (IHT) implications in this arrangement?

AIf the life interest arose on death (i.e. the trust was created by will), the life interest will be a ‘qualifying’ interest in possession for IHT purposes. This means that on the death of the life tenant, the trust fund would form part of her estate for IHT purposes, and there would be an automatic uplift to market value for capital gains tax (CGT) purposes so that the remaindermen would acquire any chargeable assets at a base cost equal to market value at the date of the life tenant's death, free of any historic gains.

If the trust is wound up during the life tenant's lifetime and the trust assets are distributed between the life tenant and the remaindermen, the life tenant will make a potentially exempt transfer (PET) for IHT purposes, valued in accordance with the ‘loss to the estate’ principle, i.e., the value of her PET will be the difference between the pre-dissolution value of the trust fund and the value of the assets that she ends up with.

In addition, the trustees will make a disposal for CGT purposes, with any gain made since acquisition of the assets by the trust taxable on the trustees at the highest rate of 24%. The trustees cannot claim CGT holdover relief in this scenario, but they can claim

private residence relief in respect of any period that the life tenant has occupied the property under the terms of the trust.

QWith the introduction of IHT on most pension funds from 6 April 2027, will it be possible for members to invest in assets that qualify for business property relief through a small self-administered scheme (SSAS) or a self-invested personal pension (SIPP) and avoid some or all of the IHT charge?

AUnfortunately, this will not be effective for mitigating IHT. In the government’s consultation response and draft legislation on the reform of IHT on unused pension funds, there is a clause that specifically excludes assets held within a pension fund from benefitting from either agricultural property relief or business property relief. This means the full value of the pension funds will form part of the estate regardless of the underlying investment. ●

Technical Connection

→ Taken from the Technical Connection Techlink Professional question bank.

To find out more, visit: www.techlink.co.uk/techwise

The CII Financial Assess training package tests your knowledge of key financial topics

QUESTION 1

Which category of taxpayer would not benefit from a personal savings allowance?

Additional-rate taxpayers

Basic-rate taxpayers

Higher-rate taxpayers

Starting-rate taxpayers

QUESTION 2

There was no additional state pension during which period?

April 1975 to April 1978

April 1988 to April 1997

April 1997 to April 2005

April 2005 to April 2009

QUESTION 3

Approximately how many mortgages have temporarily reduced monthly payments via the Financial Conduct Authority mortgage charter rules?

QUESTION 5

What is the maximum period over which inheritance tax (IHT) quick succession relief applies?

Three years

Five years

Six years

Seven years

QUESTION 6

What is the purpose of making a capital gains tax negligible value claim?

To establish a capital loss

To establish a chargeable gain

To exempt an asset from tax

To use the annual exempt amount

QUESTION 7

What type of annuity is guaranteed never to fall?

With-profits

Index-linked

QUESTION 4

What is the maximum investment limit for premium bonds?

£100,000

£40,000

£50,000

£75,000

QUESTION 8

Which of the following collective investments would generally be regarded as the most risky?

Investment company with variable capital

Investment trust

Open-ended investment company (OEIC) Unit trust

QUESTION 9

What is the definition of long-term residence for IHT purposes?

Resident in the UK for at least 10 out of the previous 20 tax years

Resident in the UK for at least five out of the previous 10 tax years

Resident in the UK for the previous 10 tax years

Resident in the UK for the previous 20 tax years

QUESTION 10

The full implementation of the Renters Rights Bill is scheduled for when?

October 2025

December 2025

February 2026

April 2026

‘MIND THE GAP’

is an iconic safety warning that alerts London Underground users to the physical gap between train doors and platform edges. As a profession, our role also assists clients with safe passage, but the destination is financial security and the confidence that comes with being in control of their own financial destiny.

There are a multitude of gaps impacting our ability to deliver the best possible outcomes for the consumer.

This year’s National Conference will consider:

• The Advice Gap

• The Talent Gap

• The Generations Gap

• The Innovation Gap

To book online simply visit pfsnationalconference.org or scan below.

#pfsmindthegap