If Labour scraps the inheritance tax (IHT) relief on Alternative Investment Market (AIM) stocks “it could be as damaging for smaller companies as Liz Truss was for the gilt market”.

Rumours are now circulating that chancellor Rachel Reeves could remove the IHT break on AIM stocks, which let shares be passed on tax free if held for at least two years before an individual dies, in the approaching budget on 30 October.

The AIM was launched in 1995 and has helped more than 3,988 companies raise over £130bn.

The AIM is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market.

Chelsea Financial Services and FundCalibre managing director Darius McDermott told Money Marketing that IHT fund managers often invest in AIM stocks and that if this benefit is removed “it takes away one of the main buyers of the market”.

According to national accountancy group UHY Hacker Young, the amount of initial public offerings (IPOs) on the AIM has fallen to its lowest level since the global financial crisis.

There were just eight IPOs this year (to the end of September 2024).

This is a decrease from 12 last year and the lowest number since the five recorded in 2007/08.

Only £88.6m was raised through AIM IPOs in 2023/24, compared to £8.83bn raised during the market’s peak year of 2006/07.

McDermott said doing damage to the market now “might make it unfit for purpose” and that the budget is the “main deterrent” for investing in AIM at the moment.

Labour have stated the party wish to kickstart economic growth, but “if you want growth, then you need funding for smaller companies”, McDermott added.

He explained that if Reeves does this it “eats into people’s risk budget”, with smaller companies already holding more risk but “having the potential to make greater returns”.

McDermott believes there is a decent chance Reeves will take this benefit away from the AIM market, “which is not good for smaller companies” and predicts she may announce that by this November no IHT benefits will be available.

He also said that one of the benefits of AIM is that it is cheaper and involves less reporting but it is less liquid than the main market.

However, there are critics of AIM that believe it is “no longer fit for purpose”.

As Globacap co-founder and CEO Myles Milston said, “AIM has been in decline for a long time. The lack of liquidity and funding, low trading volumes and erratic share price movements are putting firms off from listing and forcing many to delist.”

Milston added, “The UK government’s PISCES framework is an acknowledgement of this shift and a better replacement.”

The Private Intermittent Securities and Capital Exchange System (PISCES), is one part of a set of measures designed to encourage businesses to grow and list in the UK and large investors to back them.

PISCES exchanges will be run by commercial providers and overseen by the Financial Conduct Authority.

Milston said: “It [PISCES] will enable private companies to access the funding and liquidity they need while avoiding the complexity and expense of going public. Investors will be able to realise their gains sooner, as it will be easier for them to find buyers for their shares.

“It’s clear LSEG also think this, which is why they have been driving the development of PISCES. AIM’s demise clearly signals the market’s direction – towards the rise of private markets.”

MCDONALD’S is axing six items as part of a major menu shake-up in days.

The changes will happen at the same time as the fast-food giant launches new never-before-seen drinks to its menu and brings back several fan favourites.

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As part of the menu update McDonald’s fans will be saying goodbye to several items this Wednesday.

Among those to be leaving menus will be the popular Chicken Big Mac.

Fans will also be bidding farewell to the Philly Cheese Stack.

The popular Mozzarella Dippers and Galaxy Chocolate McFlurry will also be leaving restaurants.

That’s not all.

Two drinks are being axed from menus too – Twix Caramel McFlurry and the Twix Latte.

Here is the full list of items being axed from menus at 11am this Wednesday and their prices:

• Philly Cheese Stack – £5.29
• Chicken Big Mac – £4.79
• Mozzarella Dippers – £2.39
• Galaxy Chocolate McFlurry – £2.19
• Twix Caramel McFlurry – £2.19
• Twix Latte – £2.69

New menu items

McDonald’s often updates its menu and the latest items will be added on October 16.

The new menu includes the never before seen Toasted Marshmallow Latte.

The coffee-based drink includes toasted marshmallow flavoured syrup and dusting, which is perfect to satisfy any sweet tooth.

It is only available in a large size and costs £2.19.

For those who don’t like coffee the fast-food chain is also introducing a hot chocolate version of this drink.

The Toasted Marshmallow Hot Chocolate has the same flavoured syrup and dusting and costs £2.19.

Fans of the Mozzarella Dippers will be excited to try the brand-new Cheese Bites.

The mozzarella and emmental flavours hit your taste buds as soon as you bite into one of the bite-sized pieces.

This pairs perfectly with the smoky caramelised onion flavoured breadcrumb coating.

They come in a portion of five for £2.49 or a sharebox of fifteen for £6.79.

McDonald’s will also upgrade one of its popular breakfast items this autumn.

The iconic McDonald’s Hash Brown will be available in a new mini size with the same crunchy exterior and soft fluffy inside.

The Sun got an exclusive invite to try them before anyone else ahead of their public debut this week.

They cost £1.49 for five or £2.99 for a sharebox of 15.

The home of the Big Mac will also bring back several fan favourites including the McCrispy Deluxe, Galaxy Caramel McFlurry and Toffee Apple Pie.

The burger was first seen on the McDonald’s menu last August and was a hit from the beginning.

It featured a crispy chicken fillet with shredded lettuce, Roma tomatoes and mayo.

The burger costs £5.99 on its own, or £7.79 as part of a medium meal.

Other popular treats making a comeback are the Halloween M&M’s McFlurry and Galaxy Caramel McFlurry.

They will cost £2.19 each, or £1.59 for the mini version.

Coming back for the second time is the Toffee Apple Pie.

The crispy pastry is filled with a spiced apple compote and toffee sauce and is complete with toffee pieces.

It costs £1.99.

Other launches

McDonald’s is also bringing back the McRib this week after an almost 10-year hiatus.

The fast food giant is bringing back the pork-based burger across its UK restaurants from October 16.

The McRib was last seen on menus temporarily in early 2015 and combines a pork patty with BBQ sauce, pickles and onions.

Fans will be able to pick one up for £4.49 or for £6.19 as part of a medium extra value meal.

We were one of the first to try it ahead of its launch.

Meanwhile, in August the home of the golden arches brought the famous Grimace Shake to the UK.

It was inspired by the fast food chain’s purple Grimace mascot and went viral stateside when it was launched last year.

The drink features a vibrant purple colour and has a blueberry-flavoured syrup blended with a creamy milkshake base.

A medium drink costs £2.69 while a large version is £2.99.

McDonald’s Monopoly 2024

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The Financial Conduct Authority has insisted it has “never been anti-small firm” and wants to “bust the myth” it is out to get them.

For years, the FCA has faced criticism from some that it is trying to force smaller companies out through increased regulation to make its job easier.

However, when asked by Money Marketing if he felt this was a fair statement, the FCA’s head of advisers, wealth and pensions, Nick Hulme, denied this was the case.

“We want small firms, sole traders, the limited partnerships, the mid-tier, the nationals the networks,” he said.

“We’re completely agnostic to size, scale, form of capital, form of control. We know how many great small firms there are around the country.

“I don’t think we’ve ever been anti-small firm.

“The value that small firms bring in the local community, these IFAs – they really care.

“Sometimes, when you talk to them, they talk of their clients like they’re friends, which is great.

“There is definitely a role for [small advice firms].”

He added: “The fact is we’ve got an advice gap that we need to address.

“We need the 37,000 financial advisers, which has stayed fairly static over the past five to six years.

“So it’s about how can we leverage everyone that’s in the market to find those additional stepping stones to get more people to take advice of whichever form?”

Hulme said he hoped that attending events and having interactive, in-person conversations with advisers across the country would “bust the myth on both sides and bring us closer together”.

“The work we all do is so important for society, not just for certain individuals,” he added.

A recent survey from Gunner & Co revealed that almost half of all advice firm owners are looking to sell up and exit the market over the next two years.

Of those, 8% said it was solely due to regulatory changes.

When asked whether he thought increased regulatory pressure was forcing small advice firms out, Hulme said he could feel their pain but denied this was the case.

“We were at this event yesterday – and I’m not at all going to get complacent – where people said regulation was fourth or fifth on the list of things they were worried about and I listed a whole host of changing fundamentals.

“Regulation is one thing that advisers are having to factor in and to deal with.”

However, Hulme added: “We do get how small firms might feel regulation more keenly. We get that.

“You haven’t got huge compliance functions, you haven’t got risk functions, we get that, and that’s where the Consumer Duty really helps.

“It’s less prescriptive, it’s more outcomes-focused, it provides greater flexibility.”

Hulme said “the intention and the motive” of the Duty is to help make advisers’ jobs much easier.

“Yes there’s regulation in this space, people understand why there’s regulation in this space, and the Consumer Duty can be a pivotal moment in helping advisers.

“Regulation is one part of a whole host of other things going on.”

The intention, Hulme said, “is to work together and collaborate”.

“We want to try and really help, talk and understand advisers’ concerns,” he added.

Sacked Finance Boss Wins damages after charging £11,700 hotel bill to his corporate card.

A high-profile finance executive was dismissed after using his company card to cover a stay at one of the globe’s most renowned hotels, following the theft of his wallet, as revealed in an employment tribunal.

Simon Price faced termination from his senior role at a global investment firm after charging his stay at the luxurious Hotel Cipriani in Venice to his corporate American Express. The 52-year-old managing director was on a memorable trip with his daughter when his wallet was stolen in New York, leaving him without any other way to settle the hotel bill, which is favored by celebrities like Angelina Jolie and the Clooneys, and was recently named the best hotel in the world.

Mr. Price enjoyed a month-long holiday where he explored Venice and New York with his daughter. He also traveled to Albania with his girlfriend, Stephanie Antonian, who works in the tech industry. During this trip, he ended up accumulating a bill of £11,672 on his Amex since he was unable to use his own credit cards.

The tribunal learned that Mr. Price was aware he could utilize a ‘reverse expenses’ system at his workplace, allowing him to quickly reimburse the amount upon his return from the trip.

Simon Price was sacked from his senior executive post at a global investment firm after he used his corporate American Express to pay his bill at Venice’s five star Hotel Cipriani

His superiors at the Canada Pension Plan Investment Board (CPPIB) were not pleased with the amounts he was spending, especially at Cipriani, which led to his termination. An employment judge criticized CPPIB for having issues with his lifestyle choices, stating that he was entitled to spend his money as he wished. Mr. Price took legal action against CPPIB, which manages the assets of the £360 billion Canada Pension Plan, for wrongful dismissal and was awarded £25,000 in compensation.

Related: How Long Can You Travel to the EU Without a Visa?

During the hearing in central London, it was revealed that Mr. Price, who was earning a high salary, joined CPPIB in October 2022 as the managing director for active equities in Europe. The businessman, based in London, was given a corporate Amex card that could only be used for personal expenses under specific conditions. In August 2023, it was reported that while on holiday in the USA with his daughter, his wallet was stolen.

‘His corporate credit card had been kept separately from his other cards in his work bag and had not been stolen,’ the tribunal heard.

‘He was aware of a mechanism to file “reverse expenses” and therefore used the corporate credit card with the intention to pay back any sums charged to that card for personal expenses.’

Mr. Price found himself in New York when his wallet was taken. Meanwhile, his daughter, who is under 18, was in Pennsylvania, prompting him to use his work card to book her flight to join him in the city. After reuniting, they were set to embark on a journey to Venice, Italy, for a three-night stay, with a stop at Heathrow airport along the way. Although Mr. Price canceled his cards, the replacements were sent to his home address. As a result, he had to complete their trip to Venice using his Amex card.

The Cipriani, which he had reserved in advance but hadn’t paid for, was named the best hotel in the world in 2023 by the French magazine La Liste. Regarded as the most glamorous hotel in Venice, it attracts a host of celebrities, including Brad Pitt, Angelina Jolie, George and Amal Clooney, and Elizabeth Taylor. During the summer, suites at this 5-star hotel can cost a fortune. After returning to the UK, Mr. Price found that his replacement cards had not yet arrived, so he continued his journey to a coastal hotel in Albania with his partner, Ms. Antonian, who operates her own AI business.

He had to purchase alternative flights with British Airways using his Amex card due to issues with their scheduled flights at Luton airport. Upon his return on September 5, 2023, Mr. Price recorded £11,672.91 as a ‘reverse expense’ to be deducted from his salary. In December 2023, he was informed that ‘everything was resolved’ regarding the finances.

However, the tribunal revealed that an internal inquiry was initiated concerning the high expense amounts, prompting HR in Toronto, Canada, to investigate further. The tribunal report indicated that internal emails from the company’s corporate services department showed disapproval of the expenses Mr. Price incurred, particularly at the Hotel Cipriani in Venice. Ms. Antonian became involved in the investigation when CPPIB questioned Mr. Price about his vacations.

When asked about his trips, Mr. Price initially claimed he traveled to Albania with his daughter but later admitted it was a falsehood and that he was actually with his partner.

Mr Price was in New York while his wallet was stolen

During a meeting in January 2024, he explained that he lied about traveling with his daughter because ‘family life was a sensitive topic’ and he preferred not to disclose it to Toronto-based director Samantha Dachis, whom he had never met. After this meeting, Ms. Dachis spoke with senior managing director Frank Ieraci, leading to Mr. Price’s immediate termination. CPPIB stated that Mr. Price’s behavior during the investigation was deemed ‘unacceptable’.

CPPIB mentioned that some reasons for his dismissal included the total amount spent, not exploring alternative payment methods, and misrepresenting his travel companions. During the tribunal, Employment Judge Alexandra Davidson stated that Mr. Price did not act with dishonesty.

Judge Davidson remarked, “Mr. Price found himself in a situation where using the corporate credit card was the only option to pay for certain expenses, and he fully intended to reimburse all his charges upon returning to the office. He continued his usual activities, using the corporate card as he would have used his personal card. Upon his return, he made efforts to repay these amounts without delay. It is not for CPPIB to suggest that he should have opted for a less expensive hotel in Venice or waited for hours at Luton airport to see if his flight would take off. Mr. Price is a high earner and has the right to spend what is ultimately his money as he chooses.

There is no indication that he sought to gain any advantage by using the corporate card; he simply wanted to avoid canceling his plans, which would have disappointed his daughter and girlfriend. I understand why he felt there was no reason to cancel his trips, especially since he intended to repay all charges to the corporate card right away. CPPIB seems to have issues with Mr. Price’s lifestyle choices, but in my opinion, these do not pertain to whether he violated his contract.” After his dismissal, Mr. Price engaged in some consultancy work but has not yet secured a new position.

Related: Best Credit Cards for Travel Rewards 2024

Good morning and welcome to your Morning Briefing for Monday 14 October 2024. To get this in your inbox every morning click here.

Removing IHT tax break on AIM stocks ‘might make it unfit for purpose’

If Labour scraps the inheritance tax (IHT) relief on Alternative Investment Market (AIM) stocks “it could be as damaging for smaller companies as Liz Truss was for the gilt market”.

Rumours are now circulating that chancellor Rachel Reeves could remove the IHT break on AIM stocks, which let shares be passed on tax free if held for at least two years before an individual dies, in the approaching budget on 30th October.

Chelsea Financial Services and FundCalibre managing director Darius McDermott told Money Marketing that IHT fund managers often invest in AIM stocks and that if this benefit is removed “it takes away one of the main buyers of the market.”

FCA: ‘We’re not against small firms’

The Financial Conduct Authority has insisted it has “never been anti-small firm” and wants to “bust the myth” it is out to get them.

For years, the FCA has faced criticism from some that it is trying to force smaller companies out through increased regulation to make its job easier.

However, when asked by Money Marketing if he felt this was a fair statement, the FCA’s head of advisers, wealth and pensions, Nick Hulme, denied this was the case.

Small advice firms heading for extinction

The latest Financial Conduct Authority Retail Mediation Activities Return findings are a stark revelation.

They confirm that the decline in the number of small advice firms is more than a trend — it’s a rapidly accelerating one. In 2023, there were 10% fewer sole traders than in 2022, and 8% fewer firms with two to five advisers.

The numbers have remained steady over recent years, defying expectations. However, consolidation activity, with elderly advisers retiring and exiting, is beginning to kick in writes Tim Sargisson former chief executive of James Hay and Sandringham Financial Partners.

Quote Of The Day

As we head into the last quarter of 2024, growth has held up okay and inflationary pressures have diminished, leading to the major developed market central banks firing the starting gun on an interest rate cutting cycle. We expect a synchronised cutting cycle across major markets over the next 6-12 months.

– Aviva Investors head of investment strategy and chief economist Michael Grady on central banks interest rate cuts this year

In Other News

This month, the Academy of Life Planning will unveil a new pathway for financial planners, offering a route to professional recognition without the need to sell financial products.

Supported by the Chartered Institute for Securities & Investment (CISI), the initiative allows planners to focus on client-centred, holistic advice without sales pressure.

The move is a significant step towards establishing financial planning as a distinct profession, akin to accounting and law.

Key benefits include maintaining professional titles and qualifications without product sales, appealing especially to younger professionals, such as Gen Z, who seek advisory roles free from sales targets.

On 24 October at 4 PM, Chris Morris, CISI’s Head of Financial Planning, will host a Zoom session to outline how financial planners can achieve Certified Financial Planner (CFP) status through this pathway.

The event will also guide those transitioning from other qualifications. To register, click here.

Asia shares stutter as China’s stimulus pledges fail to inspire (Reuters)

Starmer vows to ‘rip out bureaucracy’ to aid growth at investment summit (Financial Times)

Wage growth for UK’s lowest-paid keeps BOE wary of inflation (Bloomberg)

Did You See?

The Financial Conduct Authority (FCA) is remaining tight-lipped over the timing of its recently announced review of consolidation in the advice sector.

On 7 October, the regulator unveiled plans to examine consolidation, emphasising the need for strict approval processes when firms acquire or increase control over regulated entities.

Despite speculation that the review may have been prompted by concerns over rushed deals ahead of potential capital gains tax (CGT) changes, the FCA declined to confirm or deny this.

When asked by Money Marketing if this was the reason, the FCA’s head of advisers, wealth and pensions, Nick Hulme, stated he would not “specifically answer the question”.

In an interview at the Consumer Duty Alliance conference in Birmingham (11 October), Hulme added: “I think we wanted to really reiterate the point that you need to get FCA approval before a change of control.

“We wanted to make it as clear as we possibly could that this is our expectation and if we find out that it hasn’t been we will act.”

“The ‘why now’ comes out of a number of reasons.

“One is, it’s been a while – seven years – since we last ‘kicked the tyres’ and had a look at this.”

Dan Cooper has the full story.

OVER three million struggling households will start receiving letters from the Department of Work and Pensions (DWP) detailing £150 worth of energy bill help.

The Warm Home Discount is a one-off tax-free discount on your electricity bill.

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If you are eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.

To qualify you usually need to be claiming one of a number of means-tested benefits during the qualifying week, which is usually in August,

The DWP said it will start sending letters to those who qualified for the scheme from today, October 14.

But do not panic if it does not arrive on your doorstep today, as it may take up until mid-December for it to be posted out.

Miatta Fahnbulleh, minister for Energy Consumers, told The Sun, that today is important for “worried about energy costs”.

She explained: “If you don’t receive [a letter] but think you might be eligible then you can visit gov.uk for an eligibility checker.

“Today we are also launching a helpline, open until February, which you can call to find out whether you meet the criteria.”

Meanwhile, the Post Office is urging families who receive the discount in voucher form to act urgently.

Those who use pre-payment meters often receive the £150 boost in a voucher which can be redeemed at their local Post Office or PayPoint shop.

However, data from the firm showed that last year up to £3million worth of vouchers went unclaimed at their sites.

If this applies to you, it is important to redeem the voucher soon after receiving it as they do expire, some in as little as 30 days.

However, if the voucher is lost or expired, households can contact their supplier to have it reissued.

News of the cash boost comes as Brits remain worried about their energy bills this winter.

Energy regulator Ofgem has raised its price cap, meaning energy bills are set to rise by around £149 a year.

Elsewhere, cuts to the Winter Fuel Payment mean 10million pensioners are set to miss out on £300 worth of fuel support.

How to apply for the Warm Home Discount

You will get the discount automatically if you’re eligible and claim one of the following benefits:

• Housing Benefit
• income-related Employment and Support Allowance (ESA)
• income-based Jobseeker’s Allowance (JSA)
• Income Support
• the ‘Savings Credit’ part of Pension Credit
• Universal Credit

You could also qualify if your household income falls below a certain threshold and you get either:

• Child Tax Credit
• Working Tax Credit

Applications for the scheme opened in October, however, you may not get the help until next March.

To get the cash you’ll usually need to be actively claiming one of a the means-tested benefits listed above in the qualifying week – which is usually in August.

However, if you later launch a successful claim for backdated benefits, you may still be able to qualify after this date and once it’s confirmed.

If you qualify for the WHD, you should receive a letter telling you. 

The Warm Home Discount Helpline number is 0800 030 9322 to provide assistance and help customers who have received a letter regarding their eligibility.

You can also use the government’s free online eligibility checker to see if you are missing out on the help.

This can be found at https://www.gov.uk/check-if-youre-eligible-for-warm-home-discount.

If you are worried about your energy bills, check out The Sun’s article on the full list of support worth over £5,000 here.