A new generation of start-up advice firms is leading the post-private-equity-backed consolidation market with innovation and best practice, according to Platforum.

The consultancy said these start-up advice firms are “reshaping the market” once dominated by PE firms.

Private equity has played a big role in driving M&A activity in recent years with several firms acquired. And over half of advisers are now working at firms with more than 50 advisers.

The pace of PE consolidation has slowed in the past year due to higher interest rates and increased regulatory scrutiny.

However, Platforum said consolidation has also led to the rise of start-up advice firms, as many have been formed by breakaway advisers from acquired firms.

And there are others led by entrepreneurially minded advisers ready to branch off on their own.

A recent Platforum survey of 264 advisers found that over a quarter (26%) of advisers are working in firms that are less than 10 years old, half of those founded since 2020.

It said these newer firms tend to follow similar business models, particularly those that started during the pandemic.

They are more likely to use technology to boost efficiency and data analysis, have more academic qualifications with many attaining chartered status, outsource their investment propositions instead of managing them in-house and adopt evidence-based investment strategies.

The barriers to entry are minimal for financial advisers who start their own businesses, especially for those who have existing clients.

Starting costs are often low compared to other industries because of network turn-key solutions, manageable capital requirements, minimal start-up overheads, outsourcing options and favourable cash flow.

Platforum analyst Mariam Pourshoushtari said: “The recent wave of PE-backed consolidation has undeniably reshaped the UK advice market.

“However, less attention has been given to the new generation of dynamic, lean, tech-driven firms emerging in its wake. These businesses are also transforming the market, often leading in innovation and best practices.”

Starting firms from scratch can be a daunting enterprise for newly qualified advisers.

It often requires a few years to attract enough clients to become profitable and it takes time to gain the experience and soft skills required for long-term business sustainability, according to Platforum.

However, many commentators say that despite the increasing regulatory demands, newer firms are set up with these rules in mind from day one, helping them avoid the expensive restructuring that older firms often have to navigate.

MILLIONS of households need to take and submit meter readings now to avoid paying too much for their energy.

Bill payers have until tomorrow to get an up-to-date reading before the Ofgem price cap goes up by 10%.

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It will see the average dual-fuel bill paid by a direct debit customer hiked by £149 from £1,568 to £1,717, although you could pay more or less based on your usage.

It’s important to submit a meter reading around the time the rates change to make sure all your energy usage up until that point is charged at the lower rate.

If you don’t, you will be given an estimated bill which means some of your energy usage after October 1 could be charged at the new higher rate.

If you have a smart meter, you don’t need to take a reading as information is automatically sent to your supplier.

However, you should do a quick check to make sure it is working properly and reporting your usage accurately.

There’s also no need to submit a meter reading if you’re on a fixed energy tariff or have a traditional prepayment meter.

If you do have a non-smart energy meter, the exact deadline for submitting readings differs depending on your supplier.

Some will allow you to backdate the reading from the date it was meant to be submitted.

In some cases, you have an extra two weeks to submit a reading.

Here are the deadlines suppliers have confirmed to The Sun for submitting meter reads as the energy price cap changes.

It comes after Martin Lewis urged households to go for fixed energy deals to save on their bills as experts at Cornwall Insights predict the price cap will fall by 1% in January.

British Gas customers can submit their meter readings up until October 14.

This can be done through an online account, through the British Gas app, over the phone or through a form on the firm’s website.

You can call British Gas on 0330 100 0056 Monday to Friday between 9am and 5pm.

EDF customers will be able to back date their meter reads at any time up to and including Wednesday October 9.

Customers will be able to leave meter reads via the EDF App, or online via their MyAccount. Readings can also be submitted via telephone, email or by text and WhatsApp.

Octopus Energy customers have until the end of October 8 to submit their meter readings.

Meter readings can be submitted through online accounts, a form on the provider’s website, app or email.

Customers can submit their meter readings via the app, online account, phone, Whatsapp or webchat at any time. 

Scottish Power has no deadline for meter readings. Customers can update meter readings as and when they wish to provide them.

If you are on a standard variable or default tariff with Scottish Power, then the energy price cap will automatically apply.

However, if your prices need to increase as a result, there’s no need to contact them.

Scottish Power said: “We’ll write to you by letter or email to let you know what your new prices will be before the change takes place.”

How to take a meter reading

Taking a meter reading should only take a minute, and once you have noted down the figures you can usually give to your provider by text, online or through an app.

Look up the individual options with your own supplier.

It’s a good idea to take a quick picture of your meter reading when you submit it – just in case you need it as evidence in any disputes that arise.

Exactly how you take a meter reading depends on the type of meter you have.

Electricity meters

If you have a digital electricity meter, you will just see a row of six numbers – five in black and one in red.

Take down the five numbers in black – you don’t need the red number.

If you are on an Economy 7 or 10 tariff which gives you cheaper electricity at night – you will have two rows of numbers and need both.

If you have a traditional dial meter you will need to read the first five dials from left to right, again you don’t need the red ones.

If the pointer is between two numbers, write down the lower figure and if it is between nine and zero write down the number nine.

If the dial is directly over a number, write down that number and underline it.

If you’ve underlined a number, check the next dial to the right.

If the pointer on that dial is between nine and zero, reduce the number you’ve underlined by one.

For example, if you originally wrote down five, change it to four.

Gas meters

If you have a digital metric meter showing five numbers and then a decimal place, you only need to write down the first five numbers from left to right.

If you have a digital imperial meter, your meter will read four black numbers and two red numbers – note down the four black numbers only.

If you have a dial gas meter, follow the same steps as the dial electricity meter, but you don’t need to follow the process of underlining figures.

Hang on a minute, lads, I’ve got a great idea.

There are mods. There are rockers. There are athletes… and basket cases… princesses… and criminals.

But underneath, we’re all the same, aren’t we?

The Italian Job. Quadrophenia. The Breakfast Club.

I don’t mind admitting I turn 50 next year and these are the films I’m considering showing should I go ahead with my current plan of hiring a small cinema to watch one of my favourite films.

I’m not sure which one has aged best (or worst – message me!) but all three played a big part in my life and have brilliant soundtracks.

If anything, on the basis that standing still isn’t moving forward, we’ve gone backwards

The big 5-0 has also brought around a review of our business protection, which recently resulted in a phone call to go through a new application for life cover, something I’ve not done for a very long time.

With hindsight, I’m not sure what I was expecting. I perhaps assumed the process may have become a bit slicker, a bit more appropriate to my circumstances, and maybe a bit more ‘human’.

Alas, none of these were true. If anything, on the basis that standing still isn’t moving forward, we’ve gone backwards.

Thankfully, I have nothing too serious to disclose, but enough to warrant a report from my GP. And a medical at my home.

The questions asked – and, perhaps more importantly, the answers allowed – often do no match real life

Speaking candidly, I’m amazed and quite disappointed that we still ask a seemingly endless list of “Have you ever…?” questions that are not just incredibly boring but also a difficult memory test that feels more like a pedantic school exam.

The questions asked – and, perhaps more importantly, the answers allowed – often do no match real life.

Did they ever?

I was asked about cholesterol. I remember being told it was 5.2 last time and 4.7 this time, which I thought was a helpful and detailed answer. But alas it doesn’t compute. I need to say YES or NO and nothing else.

I was asked about a certain medical condition where I’ve had a significant change in diagnosis. I was diagnosed with one thing a few years ago, then the diagnosis changed. But, again, this does not fit the “Have you ever…?” process.

I had to answer “yes” but because the diagnosis had changed, the follow-up questions were not relevant. But they must be answered, which, to an extent, means I’m forced to give false information.

Remembering health issues is not fun and our brains are sometimes far less efficient at remembering bad things

That might make sense now (it doesn’t, but let’s pretend it does) but what about someone reading this file in 10 or 20 years’ time, in the event of a claim?

I can’t be alone. It strikes me that many people in their 40s/50s/60s will likely have long and complex medical histories that do not fit into a myriad of yes/no questions. And the sort of people who have advisers and buy large amounts of protection are also the sort of people who tend to have regular medicals to be cautious.

I’m sure there’s some behavioural science in this next point…

When applying for life insurance, we are expected to remember things that happened many, many years ago. I can remember song lyrics and lines from the films above like it was yesterday. “You’re only supposed to blow the bloody doors off”, and so on.

But these are fun things.

Remembering health issues is not fun and our brains are sometimes far less efficient at remembering bad things.

If we’re going to send trained experts to people’s homes, surely we can get more than yes/no answers

Following the phone application process, I was informed I needed a medical at home. And guess what? The visiting nurse said the same thing – there’s only room for yes/no answers, no backstory or explanation, not even a free text box.

Although I was impressed the cotinine test was done in five seconds.

If we’re going to send trained experts to people’s homes, surely we can get more than yes/no answers (and have systems that allow this).

I’ve had dozens of medicals and tests, many of my own choosing to be on the safe side. But remembering which ones were within the last two, five or 10 years, and which ones showed what (or didn’t), I’ve really no idea.

It strikes me as a bit like being asked to remember all your holidays – where you went, who with, which years, which hotel, etc. It was all a bit of a blur in my 30s, let alone approaching 50.

If I were on the fence about needing it or affording it, I can certainly see why many people don’t bother or pull out

I work in the industry, so I kind of know what to expect, but several times I felt like giving up.

It’s almost as if we want to put people off.

I asked advisers whether much has changed with the application process over the last 20 years. Not really, was the general view. A few more interactive questions, maybe, discussing with clients if they want to complete the form themselves or do it over the phone, and systems where you can get underwritten premiums in real time.

If I were on the fence about needing it or affording it, I can certainly see why many people don’t bother or pull out.

And if people do pull out, I suspect some insurers will assume this is because the person had something to disclose. Maybe, but it’s also at least equally likely the process just wore them down.

“Hang on a minute, lads, I’ve got a great idea.”

Instead, could we ask people to tell us about their lives in their own words – and build from there?

We want to avoid non-disclosure. We want to pay as many claims as we can. But 40-minute memory tests can’t be the best way to do this

I’ve spoken to several people who, while acknowledging a few operational challenges, agree this could be a better way forward. I’m told behavioural science suggests we might even get better disclosure this way, as well as making the process more sensible and ‘human’ for customers.

There are some newer tools, but they are the exception and not the rule.

We want to avoid non-disclosure. We want to pay as many claims as we can. But 40-minute memory tests cannot be the best way to do this.

If people can’t buy (and amend) these products on their phones in a few minutes, we’re dead.

There are mods. There are rockers.

There are athletes… and basket cases… princesses… and criminals.

But underneath, we’re all the same, aren’t we?

We all care about protecting those we care about, and we all want to do the right thing.

We just need to stop making it so bloody difficult.

Kevin Carr is managing director at Carr Consulting and Communications and chief executive at Protection Review

SEVEN in 10 small and medium businesses fear they might have to close due to rising costs – yet don’t want to pass these onto consumers.

A study of 500 small UK businesses found 88 per cent claim they are doing ‘all they can’ to reduce overhead costs.

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But 69 per cent still worry their business may be forced to close.

As many as 49 per cent blame this on the on-going increase in material costs, while 19 per cent put it down to hidden fees banks are charging.

Small British businesses estimate they are each paying more than £3,700 every year in hidden charges or fees charged by financial institutions for international transactions, which could equate to three months worth of business rent in major UK cities.

And there is a possibility that figure could rise, as 15 per cent of businesses want to expand internationally.

To save customers from further price rises, 35 per cent are trying to negotiate better rates with suppliers and 31 per cent are slashing energy use.

But 56 per cent have had to implement redundancies, with 84 per cent of those saying it was their ‘last resort’.

The research was commissioned by Wise, which is championing its End the Opt Out campaign to change legislation so small businesses have transparency on fees they are charged for international transactions.

According to the firm’s research, this equates to £2.8bn per year.

Arun Tharmarajah, director of European payments at the international money app for consumers and businesses: “During these tough times, business owners are having to make hard decisions.

“Small businesses don’t want to pass rising and unexpected costs onto their customers, given the pressure people’s pockets already face this winter.

“This leaves many businesses in a tricky position.

“Those who transfer money overseas as part of the running of their business are often hit by financial providers who rip them off by charging grossly unfair fees which are hidden in the exchange rate.”

Other struggles facing small businesses include increased shipping costs (39 per cent) and staff wage increases (35 per cent).

Sadly, 89 per cent believe their business would have made a lot more profit in the last 12 months, had costs not soared.

But 35 per cent are also worried about the impact of high energy prices heading into the festive season.

This is leaving 23 per cent believing that this Christmas will be the most important their business has ever faced, according to the OnePoll figures.

Arun Tharmarajah added: “As small businesses navigate rising costs, it’s essential to remain agile and creative in finding solutions that don’t negatively impact their customers.

“Things can change quickly, whether that’s streamlining operations, negotiating better terms with suppliers, or adopting new technologies that help to reduce costs.

“Ending the Opt Out, and improving legislation to ban hidden fees, is a simple, cost-free way of helping the country’s small businesses.”

Davide Troise, the founder of Troise & Sons barbers in Hackney in London, feels his thriving business has bucked the trend, and he now wants to expand into Europe.

But in growing his offering to Barcelona, dealing with UK banks is proving a hassle as he tries to find the information he needs to make the best informed decision to continue his international expansion.

He said: “Many small businesses in the UK might be looking to expand into international markets to benefit from a larger customer base like us – but there can be lots of barriers in the way of doing this.

“Having built a successful operation in London, we are now looking to expand into Spain.

“It can be very slow and complicated to deal with banks when it comes to this international expansion, and it is made even worse when they are ripping you off with hidden fees.”

The Financial Conduct Authority and the Prudential Regulation Authority (PRA) have appointed Elizabeth Passey as chair of the Financial Services Compensation Scheme’s (FSCS) board.

She succeeds Marshall Bailey, who is stepping down after two terms as FSCS chair, and will take up the role tomorrow (1 October).

Over a 30-year career, Passey has held senior positions with J Stern & Company, Investec Asset Management and Morgan Stanley.

She recently completed two terms as chair of the Rural Payments Agency and as convener of the University of Glasgow.

The appointment was made by the FCA board and the Prudential Regulation Committee (PRC) with the approval of HM Treasury.

The FCA’s senior independent director Richard Lloyd, who was on the selection panel said: “Elizabeth will bring a wealth of experience of financial services, public service and governance to the role and we look forward to working with her.

“I want to thank Marshall for his impressive leadership over the last six years, a period of significant change for the FSCS.”

FSCS embarks on operating model overhaul

Passey added: “I am delighted to be joining the FSCS as its new Chair. The FSCS provides trust in financial services, and this is arguably more important than ever.

“It is vital the organisation continues to provide a high-quality service that gives consumers the confidence to save and invest.

“Marshall and the FSCS’ board have directed the organisation through a significant change to its work, with a steep rise in complex claims over the last six years.

“I’m looking forward to working with the other directors and the executive team to help the FSCS continue its evolution as a compensation scheme, so that it can best protect consumers in the years ahead.”

Bailey said: “I have been proud to serve as chair of the FSCS over the last six and a half years, during which time we have significantly transformed the organisation.

“The levels of consumer protection have been more clearly defined, with the FSCS continuing to play an important role in UK society by providing robust protection for consumers of regulated financial services.

“The incoming chair will bring excellent experience to a group of dedicated executive leaders and board members, and I wish her every success.”