Munro reiterated how the changes were going to fundamentally rewrite the rules on how wealth was going to be transferred.
“Your value has gone through the roof, and therefore you need to think intrinsically as to how this is wired through your business operation, and how you want to respond to it,” he continued.
Bonds are back
Munro said bonds were now going to become “a critical tax planning tool” in an adviser's framework.
He said: “As we go into this new world, especially with pensions becoming less effective for IHT, what do we start to do to replace that loss? Bonds and Trusts. That's what comes back into our toolkit, and that's an area that I'll probably ask each and every one of you to think about in terms of what’s your knowledge on bonds and trusts?”
Munro finished by saying: “The only way we can direct this into Principle 12 of the consumer duty of customer outcomes is to think about how we rewrap client wealth. How do we do things differently? How do we benefit from tax relief?
“How do we get the best of the toolkit that we have available today? We do need to think differently.”
alina.khan@ft.com
