AJ Bell has identified a set of updates and regulatory deadlines for financial planners and advisers to watch out for in March.
The investment platform picked out three key things. First, on 17 March the Treasury Committee’s call for evidence on AI in financial services closes.
The Committee is exploring how the financial services sector can take advantage of the opportunities in AI, while mitigating any threats to financial stability and safeguarding financial consumers, particularly those who are vulnerable.
Coming next on 20 March, the FCA consultation on proposed new product information framework for Consumer Composite Investments (CP24/30) closes.
The consultation will consider a new product information regime to help consumers understand the investment products they are buying.
Rachel Vahey, head of public policy at AJ Bell, said: “The FCA wants to create a new framework for investment products, giving firms the flexibility to take the standard product summaries created by fund managers and re-design them using plain language, graphics and digital tools to make them more accessible, relevant and engaging for consumers.
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“All of this is perfectly laudable. The current rules are far too rigid and providing consumers relevant information in an easy-to-understand format should make it easier for them to understand their investment choices and make decisions that suit their personal circumstances.
“But there is a danger the FCA’s proposals won’t hit the mark,” she continued. “The proposals are more intricate than anticipated by the industry, and to introduce them would mean significant operational work. Information would need to be shared across the industry between manufacturers and distributors, which could lead to operational challenges.”
The final of the three milestones is the Treasury’s Spring forecast on 26 March. This was originally intended to only cover the Office for Budget Responsibility’s (OBR) economic and fiscal forecast, but wider policy announcements are expected due to the struggling economy and rising concerns over public spending levels.
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Tom Selby, director of public policy at the firm, said: “The new government may have pledged to reduce the number of official Budgets from two to one, but weak growth and high borrowing costs have left the chancellor with little fiscal flexibility.
“There is mounting speculation that Reeves might therefore consider using the Spring forecast as something that looks more like a proper fiscal event, although she will doubtless want to avoid giving the impression of panic to the markets.
“In the absence of a sharp rise in growth, the chancellor faces three options, whether by March 2025 or later: loosen fiscal rules, which she says she won’t do, cut government spending, or raise taxes,” Selby said.
“All come with significant political and practical challenges, particularly given businesses have already been clobbered and Labour pledged not to raise the rates of income tax, national insurance or VAT on ‘working people’ in its election manifesto.”
