After a busy 2023, which included the introduction of the consumer duty, the coming year promises to be just as eventful.
The most immediate thing for advisers to concern themselves with in 2024 is the scrapping of the lifetime allowance which is happening in early April with the final regulations having been published late last year.
Speaking on the podcast, FT Adviser news editor Amy Austin said: "Several people have told me that advisers should be having conversations early this year, to prepare clients for the scrapping of the LTA.
"Advisers are going to have to make themselves familiar with the two new allowances and there are also a number of transitional arrangements for those who have taken benefits before April 6, 2024. It is no easy feat to get this sorted and it will take a lot of work and a lot of man hours."
Another bit of upheaval from last year which will have a bit effect on 2024 is the FCA's consultation on simplified advice which came hot on the heels of the implementation of the consumer duty.
Sonia Rach, FT Adviser's deputy news editor, said: "A lot of [the FCA's consultation] ties in with the consumer duty. The purpose of the duty was to set higher standards of consumer protection across financial services and there was a focus on consumer needs first. This is reflected in the advice-guidance boundary consultation."
The macroeconomic environment was the backdrop for so much of what happened in 2023, with interest rates and inflation rising, and what happens on this front will be a key factor in how 2024 pans out for the financial services sector.
Tara O'Connor, investment reporter at FT Adviser, said: "The fall in inflation that we saw at the end of 2023 puts a bit of pressure on the Bank of England to bring interest rates down. They have said the economy is moving in the right direction for rates to come down but there is still a lot of work to be done.
"People are expecting rates to be cut at some point in 2024 but maybe not until the last part of the year, and even then rates won't go down to the low rates people have been used to over the past 15 years. There is even the chance of a recession in 2024 so there may still be tough times ahead."
The FT Adviser Podcast is available on Spotify, Acast, Apple Podcasts, Google Podcasts and most other podcast platforms.
damian.fantato@ft.com
