Regulatory policy

Schroders: Public Policy Leader discusses impact of regulation for financial advisors at #LangcatLive2022

As a proud sponsor of #LangcatLive2022, Schroders has joined other influential organizations in the financial services industry to tackle some of the biggest issues facing the savings and investment industry today. today confronted.

‘Who benefits?’ was the key question debated at this year’s conference hosted by knowledge, research and communications consultancy, The Langcat. The event addressed important themes that have emerged over the past two decades, how they continue to shape client outcomes today, and what challenges lie ahead.

Moderated by Financial Times personal finance reporter Claer Barrett, Schroders public policy manager Sheila Nicoll participated in the “Question Time” session, joined by four other panelists to answer and discuss questions submitted by the audience, which was made up of financial advisors.

A recurring theme of the conference was trust in financial services institutions, while the panel also covered issues such as the impact of regulation, the cost of advice and sustainable investing.

Sheila Nicoll, head of public policy at Schroders, noted how trust in institutions has generally declined over the past decade. She stressed the importance of helping people better manage their finances.

Sheila Nicoll, Head of Public Policy, Schroders, commented:

“We need to nudge people at the important times in their lives when they are open to thinking about money. We also need to reach out and be allowed to communicate with people in a way they understand and with whom they want to engage. Existing regulatory requirements around disclosure don’t necessarily allow us to do that at this time.”

Regarding environmental, sustainability and governance (ESG) challenges, Sheila added:

“Sustainable investing and ESG are becoming more mainstream. There has been recent media coverage of how Section 8 and Section 9 funds are outselling other types in The situation in the UK is rather different, but the interest in sustainable funds is clearly there There is a lot of political pressure to invest in sustainable assets in the EU, while the approach in UK is a little more balanced. But there is no doubt that customer demand will continue to increase.

“The FCA has said it will in due course review advisers and the extent to which they should provoke sustainable investing discussions with clients, but we don’t need to wait for regulation – let’s do it by ourselves.”

Results from the Schroders Financial Adviser Survey 2021 revealed that the majority of advisers said they had seen an increase in the number of clients requesting a sustainable investment over the past 12 months. Some 80% of advisors say they explicitly consider ESG factors in their investment decisions.