Wealth tax changes announced in the last few months are changing the way that advisers need to approach cash management for their clients, according to Flagstone’s latest poll of UK financial advisers.
Key findings
- 86% of financial advisers are offering as much or more advice on cash management now versus last Autumn
- Three in ten (30%) of them say client demand for cash management advice has become higher
- And a third (31%) report that more clients are keen to keep money in cash than they were previously
Claire Jones, Head of Strategic Partnerships at Flagstone, comments: “Advisers are experiencing a gear-change in terms of their clients’ attitudes towards cash. Whether this is the result of a market-wide flight to safety amidst uncertainty over tax changes and sustained geopolitical turmoil, or just a simple need for greater reassurance, more advisers are seeing more clients come to them to explore what cash holdings look like as part of a well-balanced investment portfolio.
“For years, cash has often been overlooked in portfolio discussions. But now advisers want better tools to track it, report on it, and build it into long-term financial planning. They’re under pressure to show clients that every part of their portfolio, including cash, is working hard.”
This data follows the recent announcement that Flagstone has integrated with Intelliflo. 30,000 advisers using Intelliflo can now access their clients’ cash holdings data more easily to include it in portfolio reporting and make recommendations for its ongoing management.
Asked about their expectations regarding the future of cash ISAs, two thirds (66%) of financial advisers expect limits on cash ISAs to come into effect by the end of the year.
Jones adds: “To have abolished cash ISAs in the Spring Statement which had been a widespread fear would have been irresponsible and unfair. Cash ISAs are not, however, in the clear yet and the common expectation is that there will be limits applied to annual deposits within months. Front-footed advisers will take the opportunity now to familiarise themselves with the cash options beyond ISAs that best suit their clients.”
