Alex Hurrell’s Post

ICYMI: The government’s Spending Review will have a significant impact on education. ASCL's Julia Harnden considers what we now know, what we do not yet know, and what actions we can take now in terms of financial planning in her article in SecEd: https://ow.ly/sICL50UcLyg #SpendingReview #education #funding #Chancellor #financialplanning

PIMFA has set out its agenda for government over the course of this Parliament. PIMFA - Personal Investment Management & Financial Advice Association’s agenda: ‘Creating a UK Culture of Thriving Financial Health’ builds on and supports the policy priorities set out by the Labour government. #FinancialHealth #WealthManagement #Government https://lnkd.in/evHyxkMJ

Prioritising budget allocation is crucial, especially in tough financial times. Investing in professional development with AHEP isn't just an expense—it's a strategic move 👉🏾 https://ow.ly/mt3350RzbSJ #ProfessionalDevelopment #InvestInYourTeam #AHEPCommunity

Want to learn more about the state of municipal finances in the U.S.? My coauthor Marcelo Sena is presenting our paper on Local Government Valuation tomorrow, 11 am ET. Tune in: https://lnkd.in/gDC6mVSy We show that: 1) A substantial share of municipalities operate with a negative net position—akin to a negative book equity position in the corporate context. 2) Most of this decline in the financial position originates from the accumulation of legacy obligations; such as, pensions and other post-employment benefits. 3) While the municipal bond market recognizes the differences in the fiscal position, the magnitude of the spreads appear small to reconcile the differences in fiscal health. 4) We rationalize the observation in the municipal bond market by pricing the implicit bailout insurance by higher levels of government. You can find the full paper at: https://lnkd.in/gcuc248B And thanks to Dan Garrett, Paul Gao, and Dermot Murphy for hosting!

From regional ‘deficit belts’ to the challenges of inconsistent reporting, Jack Shaw and Andy Pike share their recent analysis of 317 council financial strategies. 📊 The findings reveal the scale of local government distress and make the case for an urgent overhaul of the funding system. #localgov #councils #funding #resources #s114 #budgets #SEND #tempaccom Read the article through the link below: https://lnkd.in/ecqHF3kP

The debate surrounding Australian superannuation funds' ability to use general administration fees to cover the cost of advice to members is a complex and contentious issue. This article in today's Australian Financial Review raises some interesting questions. https://lnkd.in/gYvJPWH6 Let's examine the pros and cons of this model: 𝗣𝗿𝗼𝘀 1. 𝘐𝘯𝘤𝘳𝘦𝘢𝘴𝘦𝘥 𝘈𝘤𝘤𝘦𝘴𝘴 𝘵𝘰 𝘈𝘥𝘷𝘪𝘤𝘦: Allowing super funds to use general fees for advice could make financial guidance more accessible to a broader range of members, particularly those who might not otherwise seek or afford individual advice. 2. 𝘌𝘤𝘰𝘯𝘰𝘮𝘪𝘦𝘴 𝘰𝘧 𝘚𝘤𝘢𝘭𝘦: Super funds can potentially provide advice more cost-effectively due to their large member base, potentially leading to lower overall costs for members. 3. 𝘈𝘭𝘪𝘨𝘯𝘮𝘦𝘯𝘵: Super funds are generally considered to have a strong alignment with their members' interests, which could result in more impartial advice focused on retirement outcomes. 4. 𝘓𝘪𝘮𝘪𝘵𝘦𝘥 𝘚𝘤𝘰𝘱𝘦: The advice provided by super funds is typically limited to superannuation-related matters, which may be sufficient for many members' needs. 𝗖𝗼𝗻𝘀 1.   𝘜𝘯𝘦𝘷𝘦𝘯 𝘗𝘭𝘢𝘺𝘪𝘯𝘨 𝘍𝘪𝘦𝘭𝘥: Retail financial planners argue that this approach creates an unfair advantage for super funds, as they have to charge clients individually, resulting in higher costs.   2. 𝘊𝘳𝘰𝘴𝘴-𝘚𝘶𝘣𝘴𝘪𝘥𝘪𝘴𝘢𝘵𝘪𝘰𝘯: There are worries that members who don't use advice services may end up subsidising those who do, potentially leading to inequitable fee structures. 3. 𝘗𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭 𝘊𝘰𝘯𝘧𝘭𝘪𝘤𝘵 𝘰𝘧 𝘐𝘯𝘵𝘦𝘳𝘦𝘴𝘵: Critics argue that super funds might be incentivised to keep members' funds within their own products, potentially limiting the breadth of advice. 4. 𝘊𝘰𝘮𝘱𝘳𝘦𝘩𝘦𝘯𝘴𝘪𝘷𝘦 𝘈𝘥𝘷𝘪𝘤𝘦: There are concerns that the advice provided by super funds may not be as comprehensive or tailored as that offered by independent financial planners. 𝗧𝗿𝘂𝗲 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 The debate poses a strategic question for financial planners: should they focus on competing based on price or value-added services? Competing on price with super funds may not be feasible due to economies of scale in intra-fund advice. Instead, financial planners might differentiate themselves by emphasising the depth, personalisation, and long-term value of comprehensive advice, which can address broader financial goals beyond superannuation. Ultimately, this debate reflects the broader challenge of making financial advice more accessible while balancing fairness and market competition. Financial planners may need to adapt by demonstrating how their services offer a more holistic approach compared to the limited scope of super fund advice. What's your opinion on this? Should super funds be able to subsidise advice fees through general administration fees?

My Two Cents on Financial Literacy - what once was perceived as only being reserved for a select few, is now more accessible than ever. I experienced this first hand when I was searching for a school for my child and I came across a school that starts teaching financial literacy in KINDERGARTEN! They start with the basics, like understanding different coins and setting up a store. (Who knew the ABCs now include ROI?!)   This shift shows how financial education is no longer gatekept, and anyone can take part in learning the basics. Building a strong financial foundation doesn't require perfection or expert knowledge upfront. It just requires taking small steps and staying consistent starting with: - Creating a budget: The planner below is an excellent, FREE resource that allows you to better understand your income and expenses. - Understanding account types: Knowing the purpose of savings, chequing, retirement and investment accounts helps you make better financial decisions. - Seeking guidance: Expert advice can simplify the process and save you from costly mistakes. Do you think we're finally breaking down the barriers to financial literacy or just scratching the surface?

Today, the House of Commons Public Accounts Committee has published a new report on the #LevellingUpFund. At The Northern Powerhouse Partnership when this fund was first announced, we raised concerns that the Treasury’s idea for a bidding process would be unnecessarily costly and time-consuming. This has proved to be the case, exposing local authorities to high inflation, particularly in construction, which has driven up the cost of projects. Giving money directly to Mayors and the poorest councils would have been a far more cost-effective way of delivering a much bigger impact, in a much shorter time. Helping Mayors and local leaders become more fiscally autonomous would reduce their reliance on Treasury in the long-term, allowing areas to invest in key strategic priorities that drive up productivity such as transport or skills. Read Josh Halliday North of England corespondent at The Guardian who has the story: https://lnkd.in/grwue2Zc Juergen Maier CBE FRS Jessica Bowles Mike Ross Finbarr Dowling Oliver Coppard Tracy Brabin Rob Parsons Simon Bird Bev Craig Susan Hinchcliffe Will Mapplebeck Jonathan Tew Kersten England CBE Tom Riordan CBE Kate Josephs CB Tom Hunt Chris Read Robin Tuddenham Richard Moss Alex Forsyth

The Financial Advice Association Australia (FAAA) says the new class of adviser should be a “level playing field” whereby advice practices are given the same legislative privileges as the super funds. The controversial second adviser tier was due to be introduced in legislation, but this is becoming unlikely to be voted on in Parliament with an election anticipated to be called early in the new year.  Philip Anderson George John David Sharpe CFP® Sarah Abood #faaacongress #dbfo #regulation #financialadvisers #financialplanning #financialservices

Business Rates: Avoidance and Evasion – The Empty Property Relief “reset period” will be extended from six weeks to thirteen weeks from 1 April 2024 in England. Changing the ‘reset period’ from 6 weeks to 13 weeks will go some way to minimise opportunities for avoidance. It is important the financial benefit of embarking on this area of avoidance is reduced. This has been a huge hole in government funding that could be fixed very easy. Nice to see government making a move in the right direction.