Good morning and welcome to your Morning Briefing for Monday 21 October 2024. To get this in your inbox every morning click here.

Social enterprise to solve the advice gap

Financial advice firms are increasingly aware of their social responsibilities and are meeting them in numerous ways, from pro bono and charity work to B-Corp certification, which assesses the social and environmental impact of business practices.

Some firms are focusing their efforts on addressing the ‘advice gap’, where people who would benefit from financial advice cannot afford it.

But could social enterprises — businesses that trade for a social and/or environmental purpose — provide a longer-term solution?

MM Talks with Kim, Lois an Tom

Join Kimberley Dondo, Lois Vallely and Tom Browne from the Money Marketing team for the third episode of MM Talks.

This episode explores the FCA’s consolidation review, and speculation of the upcoming budget’s impact on financial advisers, and shares chillingly true finance horror stories from the internet. Listen now:

Quote Of The Day

Remember how your granny always told you that if something seems too good to be true then it probably is? You’d do well to apply this advice to investments too.

– Victoria Hasler, head of fund research at Hargreaves Lansdown, talks about how to avoid investment scams, in honour of Scams Awareness Week, which starts today

In Other News

Janus Henderson today announces the launch of its first active ETF in Europe: the Janus Henderson Tabula Japan High Conviction Equity UCITS ETF (JCPN).

The launch of this active ETF provides investors with an alternative way of accessing the firm’s “deep knowledge and insights” in this market.

The fund will adopt a high conviction approach and invest in an actively managed all-cap concentrated portfolio of 20 to 30 holdings, providing exposure to companies that are set to benefit from structural themes and trends in the Japanese Equity market, and showcasing the best of Janus Henderson’s stock selection skills.

The launch of this active ETF represents an important milestone for Janus Henderson, allowing the firm to cater to client demand globally for its investment strategies to include a UCITS ETF wrapper.

It also builds upon the firm’s active ETF proposition in the US where it is fourth largest provider of actively managed fixed income ETFs.

Europe markets watchdog bids to become EU’s version of SEC (Financial Times)

Chinese banks slash lending rates to bolster ailing economy (Bloomberg)

UBS sells its 50% stake in Swisscard to American Express (Reuters)

Did You See?

It has been 10 years since financial education was introduced to the national curriculum for secondary schools in England.

At primary school level, the national curriculum provides a framework for young children to recognise coins and learn how to use money through simple ‘number problems’ in maths lessons.

The ‘real life’ context comes later, during citizenship or ‘personal, social, health and economic’ education from age 11.

However, says Amanda Newman Smith, some schools do not follow the national curriculum, adding weight to the criticism that financial education is inconsistent in England.

Earlier this year, a report by the House of Commons Education Committee found widespread evidence that financial education in England’s primary schools was “insufficient and should be expanded”.

So, how should financial education be presented to younger children and what role do financial advisers have in this?

A MAJOR high street bargain retailer has confirmed it will shut all its stores on Boxing Day to give staff a well-earned break.

Poundland, which runs over 800 UK stores, said it will close shops on December 25 and 26.

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The discounter said all its locations will also shut on New Year’s Day as a thank you to staff.

Meanwhile, workers will be given a £25 voucher to spend in their local Poundland branch on any Christmas shopping.

Simon Wells, people director at Poundland, said: “We have brilliant colleagues here at Poundland & Dealz who work incredibly hard throughout the year, bringing our brands to life every day and supporting our customers.

“But we know they all particularly shine at Christmas, bringing the magic to our stores that our customers know and love. 

“We’re delighted to be able to support them with a well-earned rest once the festive season is over.”

It comes as Poundland launches a drive to employ 1,000 new seasonal staff to cover the busy festive period.

The majority of the shop floor roles will end on Christmas Eve while some will be extended until early January.

You can find out more by visiting Poundland’s website.

It is common practice for retailers to close their stores on Christmas Day but not all shut branches the following day.

Some also shut branches on New Year’s Day to give staff an extra day off over the Christmas period.

A number of other retailers have already confirmed they will shut on Boxing Day as well as Christmas Day this year.

Aldi confirmed it will shut on December 25 and 26, as will Home Bargains, John Lewis and Waitrose.

DIY retailer Homebase has also said it will shutter branches over the two-day period.

If you’re keen to find out whether your favourite retailer will close its branches on Boxing Day, it’s worth keeping an eye on social media.

Chains often publicise their festive opening hours on X and Facebook.

You can also try using a retailer’s store locator tool which should tell you the opening hours for your local branch.

Most of the time, it will also feature a number you can call to find out opening times.

The latest two announcements from Poundland come after the bargain chain launched its loyalty scheme UK-wide.

It is now rolling out its Poundland Perks rewards scheme to all branches and online.

The bargain discounter had been trialling the phone-based loyalty scheme at around 100 stores in Northern Ireland, Scotland, and the Isle of Wight since last year.

Shoppers can download the Poundland Perks app on to their smart phone via the Google Play and Apple App store.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Money makes the business world go around, but there is more to successful businesses than profits.

Financial advice firms are increasingly aware of their social responsibilities and are meeting them in numerous ways, from pro bono and charity work to B-Corp certification, which assesses the social and environmental impact of business practices.

Some firms are focusing their efforts on addressing the ‘advice gap’, where people who would benefit from financial advice cannot afford it.

It starts off about financial advice, but it will have a social impact. That’s why, for us, social enterprise is a win-win

But could social enterprises — businesses that trade for a social and/or environmental purpose — provide a longer-term solution?

A different approach

Social enterprise entrepreneur Nicole Bremner — who qualified as a non-practising financial adviser in Australia — is setting up a community interest company, Your Prosperity Group, to tackle the UK’s advice gap.

Bremner was motivated by seeing how distressed an elderly customer in a high-street bank had been as he insisted on making a payment to the bank or risk losing his life savings.

He did not receive the support he needed from the bank, and Bremner could not get this out of her mind.

Social enterprises rely on volunteers — but how do you maintain the quality and consistency of what is provided?

Drawing inspiration from the business model of family lawyer Jenny Beck, co-founder of Beck Fitzgerald, Bremner thought about partnering with financial advisers and other professionals to provide guidance to people who could not afford advice, supported by a reasonable fixed-fee model for those who could afford to pay.

At Your Prosperity Group, guidance will be free where a person’s net assets or household income are less than £35,000 a year — the average UK income.

Above this amount, a one-off fee of £1,499 is applicable, with follow-up meetings at £499 or an optional subscription of £35 a month.

“There is a mass of clients with less than £30,000 to invest who don’t need regulated financial advice,” says Bremner. “For them, it’s about debt and whether they should pay down their mortgage — it’s financial guidance, not advice.

If you’re improving financial literacy within communities, cities and countries, what is the social return on that investment?

“It’s very early days [with the company], but the way I want to do it is, if [someone goes] to a financial adviser and has only £10,000 to invest, the adviser can say, ‘We can assist you,’ and refer the client to us.”

If the client’s circumstances change, says Bremner, and they need regulated advice — for example, if they inherit a large pot of money — they will be referred back to the financial adviser.

She also wants to create a panel of trusted financial advisers for clients who go directly to Your Prosperity Group but need regulated advice later on.

The challenges

Chris McCullam, investments director at consultancy firm Altus, says the social enterprise route is an interesting way of tackling the advice gap.

However, he thinks it is not without challenges, such as delivering at a price that works for the mass market, and the availability of people who can deliver the service.

“Social enterprises rely on volunteers — but how do you maintain the quality and consistency of what is provided?” he asks.

There will be more prosperity, less crime and less vandalism as people understand the role of job creators and the role that business plays

“There are plenty of professional services that do pro bono work, but the nature of the work we’re in is a commercial enterprise.”

McCullam says people do what they can to help while making a living for themselves, but there comes a point where that becomes unsuccessful.

“It’s about getting the balance right,” he says.

Benefits for all

Practical considerations aside, we would all potentially stand to benefit from better access to financial guidance or advice.

“If you’re improving financial literacy within communities, cities and countries, what is the social return on that investment?” says social entrepreneur Claudine Reid.

There are plenty of professional services that do pro bono work, but the nature of the work we’re in is a commercial enterprise.

“There will be more prosperity, less crime and less vandalism as people understand the role of job creators and the role that business plays.”

As Reid points out, if local businesses are prosperous, they will create jobs for people, provide work experience for those in education, and so on. From a financial adviser’s perspective, this could increase the number of paying clients.

“It starts off about financial advice, but it will have a social impact,” says Reid. “That’s why, for us, social enterprise is a win-win.”

This article featured in the October 2024 edition of Money Marketing. 

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ANGELA Rayner is gearing up for a housing revolution, promising to double the number of council houses built.

The Deputy Prime Minister is expected to unveil nearly £1 billion in next week’s Budget to kickstart the construction of tens of thousands of new homes.

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But the cash boost is expected to be just the start, with even bigger sums expected in next spring’s multi-year spending review.

Ms Rayner believes council housing is crucial for Labour’s target of 1.5 million new homes in the next five years.

Her team is arguing more council homes could slash the £9 billion benefit bill and cut the cost of temporary housing that’s crippling council budgets.

As part of her house building plan, the Housing Secretary is also set to crack down on the Right to Buy scheme, which has seen thousands of council homes sold off at massive discounts.

The Deputy PM wants to drastically reduce these discounts and tighten the rules, meaning tenants will need to live in their homes for ten years – up from the current three – before being allowed to purchase.

For newly-built council homes, the option to buy could be scrapped altogether, preserving much-needed social housing stock.

These moves are designed to stop the steady drain of social housing, with 23,000 homes being lost each year due to sales, demolition, or conversions, while only 11,000 are built.

Ms Rayner is determined to reverse this trend by 2026.

This is despite her buying her council house using the Right to Buy scheme in 2007 with a 25 per cent discount, making a reported £48,500 profit when selling it eight years later.

Backing her plans is Chancellor Rachel Reeves, who has agreed to top up the housing budget with up to £1 billion.

Despite disagreements over local government funding, both Ms Rayner and Ms Reeves appear united when it comes to tackling the housing crisis.

A senior government source told The Times: “Angela’s ambitions on social and council housing have the full backing of the prime minister and chancellor, and that will become even clearer in the weeks ahead.

“They are joined at the hip when it comes to getting Britain building.”



Join Kimberley Dondo, Lois Vallely and Tom Browne from the Money Marketing team for the third episode of MM Talks! This episode explores the FCA’s consolidation review, and speculation of the upcoming budget’s impact on financial advisers, and shares chillingly true finance horror stories from the internet! Listen now:

SPOTTING this rare coin in your change could be a big money-spinner – it could be worth nearly 27 times worth its original £2 value.

If you discover a sought-after coin in your change, you can make money on it by selling it on.

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You could do this through an auction, either online, in person, or through a dealer.

There are some coins which are known to fetch large sums of cash, such as the Kew Gardens 50p and the commemorative 50p coins minted to mark the London 2012 games.

But there are also lesser-known designs that are worth keeping an eye out for – like the The Cattle of Geryon-themed £2 coin.

This commemorative circulated in 2000 featuring a sketch of Geryon – a figure in Greek mythology.

The Cattle of Geryon is part of the Twelve Labours of Heracles and Geryon was a giant with three bodies, known for his strength and unique herd of cattle.

Hercules was tasked with stealing these prized cattle as his tenth labour.

To reach Erytheia island, he had to overcome challenges like battling the giant Eurytion, herdsman of Geryon’s cattle – and a two-headed dog named Orthrus.

Once he reached the island, Hercules confronted Geryon and killed Geryon and took the cattle following a tough battle.

Hercules managed to bring the cattle back to Eurystheus, completing his labour.

The story is often used to symbolise strength perseverance and this rare coin serves as a reminder of this.

You’re in luck – Ebay has been flogging the rare £2 edition coin, which features the cattle of Geryon on its reverse, on its website.

They’ve gone for as much as £54 and as little as £32.

How to check if a coin is rare

In most cases, a coin is rare if it has a low mintage figure – which is set by The Royal Mint.

The mintage figure relates to how many of the coins were made, so the fewer there are of them, the rarer they are.

You can find out what coins are rare and how they look on The Royal Mint’s website.

Your next step after this is seeing if the same coin is still available to buy in superior Brilliant Uncirculated quality from an official Royal Mint distributor, according to Change Checker.

These coins have been specially made to a superior quality which differentiates them from other coins you might find in your pocket.

How to sell a rare coin

If, after checking, you realise you’ve come across a rare coin, there’s a number of ways you can sell it.

You can sell it on eBay, through Facebook, or in an auction – but be wary of the risks.

The safest way to sell a rare coin is more than likely at auction. You can organise this with The Royal Mint’s Collectors Service.

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