Advisers sometimes complain about the close scrutiny of what they do, while a Wild West of fraud and scams is tolerated, so they may welcome this move.
Cold calling for financial products – and not just pension ones - is to be banned as Citywire reports.
It now includes investments, insurance and crypto-currency calls.
I have yet to see a lot of reaction or analysis about the passing of the manufacturing deadline for the Consumer Duty. However this is interesting.
Paradigm Protect has launched a new hub comprising links to product manufacturers’ fair value assessment (FVA) documentation, in a bid to help advisers meet new CD requirements.
As bank holidays – and coronation weekends can tend to be, it has been a bit of a slow news week, so we are going to look at one theme for much of the rest of the review - namely Artificial intelligence.
Shares in education company Chegg dropped 40% after it said ChatGPT is killing its business, as CNBC reports.
IBM intends to replace 8,000 jobs with AI, which is a serious escalation from the ‘not hiring’ headlines which preceded it.
Money Marketing chips in with this question - How close is AI to predicting the stock market? asked by Larry Cao, senior director of industry research at CFA Institute.
Among other things, he writes: “When it comes to the complex financial markets, machine learning algorithms can have a hard time finding the relationship between the drivers and the outcome of a stock’s returns.”
I think it’s still relatively early days especially given some very public mistakes and even deception exhibited by large language models. But AI's march also seems inevitable.
If everyone knows what the market is going to do, that does make for a very odd world of investing to say the least.
In IFA Magazine (a few weeks' ago) Paul Nixon, head of behavioural finance, Momentum Investments gets to the heart of the matter asking - Could ChatGPT replace your financial adviser?
Notably Nixon says there are two ways to prepare as follows -
1. Deepen your relational skillset. This is basically betting on your humanity as the differentiator. Psychology now forms 7% of the CFP® professional syllabus and the empathy economy will value these skills more and more.
2. Deepen your technical skillset. Developing and specialising in a substrate of financial planning for example places you in a more shielded position when it comes to AI.
Finally, perhaps FTAdviser should win some sort of prize for stories linking to the coronation. Mortgage costs have rocketed between the coronation of King Charles III and that of Elizabeth II, it reports.
Separately, the pound has risen in value against two thirds of other monarch-led countries since King Charles ascended to the throne, analysis from No1 Currency has shown again as reported in FTAdviser.
(Your reviewer is not entirely convinced that anyone, whether commoner or king, really needed to know that.)
