Money Marketing’s Weekly Must-Reads: Top 10 Stories

This week, Tony Wickenden explores tax planning strategies in the wake of the recent Budget, and Mattioli Woods expands with its acquisition of Stockport-based Cullen Wealth. Discover more highlights below:



Tony Wickenden: Tax planning in the wake of the Budget

Mattioli Woods acquires Stockport-based Cullen Wealth  

Mattioli Woods has acquired Stockport-based Cullen Wealth, enhancing its presence in the Northwest and strengthening its wealth management and employee benefits services. This acquisition aligns with Mattioli Woods’ focus on serving mass affluent clients, business owners, professionals, and corporates. Deputy CEO Michael Wright praised Cullen Wealth’s dedication to client service, seeing the acquisition as a strategic fit for Mattioli Woods’ growth. Founder Richard Cullen expressed confidence that the partnership will drive innovation and expand offerings for their clients.

Rate of employer National Insurance contributions raised to 15%

In the Autumn Budget, Chancellor Rachel Reeves announced an increase in employer National Insurance contributions, raising the rate by 1.2 percentage points to 15% from April 2025. The secondary threshold will be lowered to £5,000, while the Employment Allowance will double to £10,500 to aid small businesses. These changes aim to generate £25 billion annually. Employers are advised to review their benefits and consider salary sacrifice schemes to offset rising NIC costs and better manage expenses.

Close Brothers and SEI sign platform tech deal

Close Brothers Asset Management (CBAM) has partnered with SEI to adopt the SEI Wealth Platform and SEI Data Cloud, aiming to strengthen its tech and data capabilities. This move supports CBAM’s strategic growth goals, enhancing services for wealth management professionals and clients. The partnership, chosen after a rigorous selection, also includes adopting Objectway’s Portfolio Management Solution and outsourcing order execution to Winterflood Business Services. SEI, which serves other major firms, welcomed CBAM’s commitment to integrated tech-driven expansion.

Reaction as Bank of England cuts base rate again

The Bank of England has cut the base rate by 0.25%, bringing it to 4.75%, with an 8:1 vote from its Monetary Policy Committee (MPC). Experts express mixed reactions, noting potential impacts on inflation and borrowing costs. Fidelity’s Ed Monk warns that while inflation is now below target, borrowing costs may not drop swiftly due to rising market interest rates. Hymans Robertson’s William Marshall and Hargreaves Lansdown’s Sarah Coles anticipate a cautious pace in future rate cuts due to inflation concerns.

Cover story: Trade Body 2.0 – Does the platform sector need a new voice?

Momodou Musa Touray, senior reporter, examines the need for a dedicated trade body for the platform sector in the UK with the newly launched Platforms Association. This group aims to unify the sector and address issues like regulatory compliance, platform requirements, and operational efficiencies. Despite support from several major platforms, the sector remains divided, with some preferring the UK Platform Group. The Platforms Association’s goal is to provide a unified voice, especially on regulatory matters, to support industry growth and stability.

Stamp duty on second homes rise to 5% from tomorrow

Chancellor Rachel Reeves announced a rise in the stamp duty surcharge on second homes and investment properties from 3% to 5%, effective from 31 October 2024. The move is part of the Autumn Budget, aiming to raise revenue while supporting first-time homebuyers. Industry responses include concerns from mortgage professionals about the impact on the buy-to-let market, with Zoopla’s Richard Donnell predicting reduced demand. ARLA Propertymark urges the government to support landlords amid the growing shortage of private rented homes.

Billy Burrows: New pensions IHT trap could fuel demand for annuities  

The 2024 Budget introduces a significant change to pensions, as unused pensions and death benefits will be subject to inheritance tax (IHT) from April 2027. This could shift the trend away from pension drawdown, which has been favoured for passing wealth, towards annuities. Annuities, particularly joint-life ones, offer secure, guaranteed income, and may become more appealing for those seeking to reduce pension fund values and provide peace of mind to surviving partners, helping to solve the “annuity puzzle” of low demand despite their efficiency. William Burrows runs the Annuity Project and is a financial adviser at Eadon & Co.

Leader: The CII and the PFS are at it again. Will this feud ever end?

Lois Vallely reports on the ongoing feud between the Chartered Insurance Institute (CII) and the Personal Finance Society (PFS), which continues to stir controversy. Recently, the CII appointed several of its executives to the PFS board, raising questions about governance and transparency. This move follows a long history of attempts by the CII to exert control over the PFS and its member funds, leading some to call for the PFS to separate or form an independent body.

Rachel Reeves announces 40% relief on business rates

Chancellor Rachel Reeves has announced a 40% business rates relief for the retail, hospitality, and leisure industries in 2025/26, capped at £110,000 per business. This is a reduction from the current 75% discount, which will expire in April 2025. The British Retail Consortium had called for a 20% cut, highlighting the sector’s disproportionate business tax burden. However, local councils depend heavily on business rates revenue, raising concerns about alternative funding to maintain local services. The relief is seen as a positive but insufficient solution.

K3 Advisory has completed a £2m annuity buy-in transaction with a pension scheme.

The deal, completed in July, secured the benefits of 16 pensioners and three deferred members.

The undisclosed pension scheme is within the mechanical and electrical industry.

Legal & General was the insurer to the scheme. Schroders, a strategic partner to K3, provided investment advisory services and Mills & Reeve acted as the Trustees’ legal advisors.

K3 Advisory, founded in 2018, is a specialist independent bulk annuity and consolidator advisory business.

The business, backed by the Vestey Holdings Group, provides trustees and scheme sponsors with advice and brokering services to secure a smooth and effective transfer of liabilities to an insurer or consolidation vehicle.

K3 Advisory senior actuarial consultant, John Mayer, said: “This transaction is a great example of how swift and efficient these exercises can be if schemes are prepared, and industry relationships and collaborations work well.

“It’s always pleasing to be able to deliver security for members of small schemes and this scheme was a brilliant example of this. A fantastic result all round.”

Paramount Global (PARA) reported third quarter earnings before the bell on Friday that showed further strength in streaming as it gets ready to combine with Skydance Media.

The media giant posted its second quarter of profit in a row for the segment, meaning profitability has improved by $1 billion over the past year.

But Q3 revenue missed expectations as the company booked continued declines in its linear TV business and pullbacks in its studios segment.

The financial update comes as the entertainment giant focuses on cleaning up its balance sheet ahead of its merger with Skydance Media, which is expected to close in the first half of 2025.

Shares moved more than 1% higher in premarket trading immediately following the results.

Revenue came in at $6.73 billion, missing Bloomberg consensus expectations of $6.95 billion and was a 6% drop compared to the $7.13 billion seen in Q3 2023

Paramount reported adjusted earnings per share of $0.49, versus $0.30 in the year-earlier period. Consensus expectations were for earnings to come in closer to $0.23 a share.

Streaming was a bright spot in the quarter. Paramount reported operating income for its direct-to-consumer (DTC) segment of $49 million, a $287 million improvement from the prior-year period.

Analysts had expected a loss for this segment of $161.5 million after the company reported operating income of $26 million in the second quarter, following a loss of $286 million in the first quarter.

For the nine months ending Sept. 30, the streaming division was still operating at a loss of $211 million. But the company has maintained previous guidance that it remains on track to reach domestic profitability for Paramount+ in 2025.

The streamer currently boasts 72 million total subscribers after gaining 3.5 million net additions in the third quarter. The gains are mostly due to the return of NFL and college football, in addition to original series like “Tulsa King” and post-theatrical releases like “A Quiet Place: Day One” and “If.”

Analysts had expected subscriber gains of 2.4 million, compared to the 2.7 million net additions the company reported a year ago.

Outside of subscriber strength, Paramount saw an 18% year-over-year jump in streaming advertising revenue.

On the flip side, linear advertising revenue once again declined though it did improve on a sequential basis. The segment dropped 2% year over year, compared to the 11% drop in Q2. Consensus estimates had pegged the segment revenue to fall 5%.

Linear profits also fell 19%, continuing their plunge amid greater cord-cutting trends that have slowed carriage-free growth and pressured distribution rates.

Story Continues