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.
Sunak resists pressure to remove cap on banker bonuses
Chancellor Rishi Sunak is resisting pressure from investment banks to remove the cap on banker bonuses, despite warnings that the City of London risks losing its competitive edge to rivals including New York. While the cap currently sets a limit on bonuses of two times salary, bankers are pushing for its removal this year as part of a series of reforms designed to make London more attractive after Brexit. However, Sunak has resisted putting it on his agenda for now, reflecting fears that the move would be politically unpopular. (From Financial Times, 2nd August 2021)
Record numbers of Londoners flee the capital for more room in the suburbs
Record numbers of Londoners are relocating to the suburbs, even as the capital reopens following the pandemic. According to estate agents Hamptons, more than 60,000 Londoners moved out in the first six months of this year. This is the highest number for 15 years as homeowners searched for more space and greenery during the lockdowns. Londoners also made up 8.6% of all buyers outside the capital so far this year, up from 6.6% in 2020. (From Daily Mail, 2nd August 2021)
Government brushes off calls to lower state pension age
The Department for Work and Pensions (DWP) has responded to calls for the state pension age to be lowered, saying it would be “neither affordable nor fair to taxpayers and future generations.” This follows a petition urging the DWP to lower the age at which people can receive their state pension to 60. Last year the threshold was increased to age 66 for men and women with further phased increases to age 68, which the government plans to bring forward. (From FT Adviser, 3rd August 2021)
Wave of dealmaking sees private equity investment in UK soar
Private equity deal value and volumes in the first half of this year rose to the highest level in five years, according to KPMG’s latest research. There was significant interest in mid-market private equity dealmaking, as funds competed for quality assets and completed 377 deals in the first six months of the year. This amounted to a combined value of £20.7bn. The business services and TMT sectors were a key focus of this recent wave of investment. (From City AM, 3rd August 2021)
Monzo in money laundering rules investigation
It has been reported that digital bank Monzo is being investigated by the Financial Conduct Authority over potential breaches of financial crime regulations. The challenger bank reported a 23% increase in new customers compared with 2020, while pre-tax losses rose 13% to £130m. Last year, many customers were locked out of their accounts when they were frozen due to ‘suspicious activity’. (From BBC 1st August 2021)