Our Weekly Newsletter
Across Instinctif Partners’ Financial Services team, we are always keeping an eye on the key developments taking place across the sector to evaluate their impact on the many businesses we work with. Here we share our picks of the week’s most interesting news, and our expert views.
Buy-to-let tax changes see landlords buying 250,000 fewer homes in last five years
Punitive tax changes have meant that UK landlords have bought a quarter of a million fewer homes since April 2016. This is 26% fewer than they would have done if the tax regime had stayed the same, according to Hamptons. The estate agent highlights that five years ago, a 3% Stamp Duty surcharge was introduced on second homes, which included buy-to-let properties. This was followed by the tapering of the tax relief landlords previously enjoyed on their mortgage interest from the 2017-18 tax year. (From Daily Mail, 17th May 2021)
FCA: Online nature of scams “unique opportunity” for regulators
Online scams present a ‘unique opportunity’ for the Financial Conduct Authority (FCA) to catch criminals, according to Mark Stewart, the FCA executive director of enforcement and market oversight. Speaking at the Investigations & Enforcement Summit, Stewart explained that this is because the marketing pitch to the victim is public, searchable, and available to everyone, meaning regulators can intercept them as victims are being lured. This is the first-time regulators have been able to follow scams as they emerge in real time. (From Money Marketing, 18th May 2021)
Goldman’s Marcus to launch robo-advice service in UK wealth push
Goldman Sachs is set to launch a robo-advice service for the UK customers of its digital bank Marcus early next year as part of a shift towards wealth management. Marcus has received more than £21bn in UK deposits since launching a savings service in 2018, near the £25bn watermark at which retail banking providers must start ring-fencing assets. Moving towards wealth management would avoid this limit, meaning it would not need to become a separate legal entity. (From Citywire Wealth Manager, 18th May 2021)
Don’t bet on UK SPAC boom, warns regulator
A senior executive at the UK’s financial regulator has warned the blank cheque company boom seen across the Atlantic is unlikely to materialise in London. Clare Cole, Director of Market Oversight at the FCA, said SPACs are likely to play a bit part in overall market activity in the UK. The predictions come as blank cheque company listings have cooled across the EU and the US. (From Private Equity News, 19th May 2021)
Inflation edges up to 1.5%
The cost of living in the UK rose 1.5% over the last year, according to the ONS’s latest CPI. The release of pent-up demand from consumers after the reopening of the UK economy has driven price growth. Utility, hospitality and oil & gas were the main contributors. A resurgence of inflation is fuelling expectations that the Bank of England may raise rates sooner than originally planned. (From BBC News, 19th May 2021)