Welcome to January's Latest News.
Welcome to our first edition of 2018. We hope you had a lovely Christmas and New Year and are ready to tackle the challenges that 2018 will bring.
MiFID II is the big news of 2018 so far. This month we bring you up-to-date with a summary of the changes we've made but we also take a closer look at best execution. You can also find out how to identify and easily create mailshots to encourage your Aegon Retirement Choices (ARC) clients to top up their ISA before 5 April, and read about auto-enrolment news as well as Scottish rate of income tax.
MiFID II is now here. Here’s our latest update.
The Markets in Financial Instruments Directive (MiFID) II - along with the Markets in Financial Investments Regulation (MiFIR) – came into force on 3 January 2018. Any firms and individuals buying or selling ‘financial instruments’ must comply. But that’s not all.
Read our summary of the changes we’ve made to be compliant with MiFID II.
MiFID II – Best execution
Best execution is an important part of MiFID II. The obligation to achieve best execution is in Article 27 of MiFID II, which states that an investment firm must take all sufficient steps to obtain the best possible result for its client when executing a client order.
We’ve therefore updated our Order execution policy and produced a new Order execution policy customer summary which are available online.
The Department of Work and Pensions (DWP) published their review of the 2018/19 earnings thresholds for automatic enrolment in December 2017 - the proposed thresholds can be found on page 8 of their review. Separately, a longer-term review document was also published and you can find this on their website. This contains proposals for making some changes to the existing rules by the mid-2020’s.
Scottish income tax changes to stand?
The Scottish Budget on 14 December 2017 announced proposed changes to Scottish income tax (SIT) for the 2018/19 tax year. HMRC have since confirmed that they'll be working with pension providers and both the UK and Scottish Governments to work out the implications the proposed changes will have on pension tax relief for Scottish taxpayers. Watch out for further updates on this issue in advance of 6 April 2018.
Fund changes and news
Find out about changes to our insured funds, including governance news, fund closures and fund changes.
Platform tip of the month
Auto re-balancing - fund switches doesn't turn off or change the auto-rebalance that's currently in place for that wrapper. If a new re-balancing form (produced at the end of the process) isn't completed funds will revert back to the original selection at the next re-balance date.