The market continues to be a challenge, with increased costs likely across the sector during 2019. Furthermore, the FCA’s plan to raise Financial Ombudsman Service compensation limits – without first addressing the current rising cost of providing regulated advice – threatens consumer interests more widely.
One of the largely missed morals of the Tata Steel saga and the recent FCA warnings is the danger that we demonise financial planners at large and allow a slim minority to define the sector as a whole.
Politicians that ratchet up the rhetoric against overwhelmingly law-abiding and professional financial planners risk jeopardising the access vulnerable people have to quality financial planning advice; if the public hear a constant chorus of criticism at financial planners, they may be less inclined to seek professional guidance when they most need it.
With the outlook for the economy and Brexit anything but certain in 2019, communicating the message that the financial planning community is on the side of the public is critical to rebuilding public trust in our profession and safeguarding public best interests.
Positive signs
Amid the gloom of a challenging year there were bright spots. Our sector showed continued progress in embracing diversity and inclusivity at all levels of seniority, while acknowledging it still has a long way to go.
The Personal Finance Society’s annual symposium highlighted the need to tackle the largest intergenerational wealth gap since records began. Access to financial planning advice for all ages is crucial in fixing this entrenched problem.
Young people benefit hugely from advice that empowers them to shape their own financial future. The elder generations can take comfort from expert financial planning on how to navigate the choppy waters of long-term care needs and ever-increasing life expectancy to ensure they achieve their goals and objectives.
A decade since the global financial crisis, public trust in the financial planning profession is still lower than it should be, despite positive progress being made. The rhetoric used by politicians is partly to blame for this.
In 2018 London ceded its top spot as the world’s global financial powerhouse to New York, a psychological blow to the City.
But if the yardstick for measuring a place is its people, then the UK can take some comfort as 2019 unfolds.
We have world class talent and expertise in our financial planning community, and harnessing its full potential will be critical in meeting the headlong challenges of 2019.
Keith Richards is chief executive of the Personal Finance Society
