Andrew Aldridge, partner at Deepbridge Capital, looks ahead to what advisers and paraplanners may want to be considering as we had towards 2023.
As we approach the new year, many will be starting to think about the coming year and what challenges and opportunities may avail themselves. Here are my thoughts on what advisers and paraplanners might be expecting to consider in 2023.
Consumer Duty: The biggest change for advice firms to deal with since RDR means that many firms will be getting to grips with the rules for a while to come! There may be asset types which they now need to have a better understanding of, in order to be able to demonstrate their considerations for client outcomes, and further training might be necessary. For the likes of EIS, VCT, Business Relief, etc, there is some great training available, which will help increase confidence.
Growth: After a turbulent 2022, at some point in 2023 you would hope there will be some sort of bounce back of the markets, providing opportunities to ride the next wave. Most firms have been through recessions before and know the routine, that being reassuring clients until the markets return to growth. Private equity and venture capital promise to be interesting opportunities for longer-term growth, with the Enterprise Investment Scheme offering unrivalled tax incentives for encouraging VC activity.
Preservation: Despite the recent economic doom and gloom, IHT receipts continue to grow and estate planning continues to be a priority for many clients, with the Autumn Budget again highlighting the importance of prudent planning. In 2021, the Deepbridge Estate Planning Service undertook a survey of advisers which found that, for up to 80% of advised clients, inheritance tax planning was a primary consideration and 78% of advisers regularly utilise Business Relief propositions for this purpose.
Green: With COP27 once again highlighting the importance of delivering Net Zero targets, we are seeing clients increasingly enquiring about investments in renewable energy and other ‘green’ investments. It is interesting that advisers are anecdotally telling us that, although such questions are asked, a majority of clients will only place this as a secondary consideration after financial performance. Nonetheless, advice frims need to be building provision for such sentiment into their proposition.
Professional development: CPD and continual training should be planned out to ensure advisers and paraplanners are attending the right session and reading the right material. There has arguably never been more quality training available and this is particularly true in the tax efficient investment space.
A series of events in January and February 2023 is being hosted by 5 leading tax efficient investment managers, details of which can be found on the Deepbridge website.
