The FCA looks set to reform the 10 per cent drop rule. The rule has been paused for the pandemic and that pause will now be extended until the end of 2021. A consultation on how the rule might be changed will be held in the spring.
The rule came in under the EU regulation MiFID II.
It does seem to be one benefit of Brexit as advisers and fund managers have always questioned the rule's efficacy. It arguably had as much chance of prompting the wrong action from investors – selling the dips – as it did of informing them.
Tuesday of this week has been dubbed 'Tax Day' where the Chancellor Rishi Sunak will set out some long term ideas about taxation. It is arguably necessary given the constant stream of emergency measures, he has been called on to put in place.
Capital gains tax reform has been widely trialed for example.
And yet there is also conjecture that pension tax relief could be flattened as Money Marketing reports. Advisers may well ask will this sword of Damocles ever fall? Or is this just a permanent threat which will never be carried out?
The DWP is providing £400,000 to pilot midlife MOT trails. Ten organisations will receive the funding which doesn't sound like a lot to go round.
The Competition and Markets Authority has ordered two developers to remove unfair ground rent terms. Countryside and Taylor Wimpey had terms which doubled the ground rent every 10 or 15 years which the CMA says broke consumer protection law.
The Financial Conduct Authority (FCA) is in the process of launching a toolkit to help MPs and their constituents manage any issues surrounding the British Steel Pension Scheme and transfers as Professional Adviser reports.
The FCA has ruled out an independent inquiry into its regulation of Neil Woodford’s fund business according to the Sunday Telegraph.
