Four Broadgate Event

Very interesting and enjoyable event for Four Broadgate on July 31st at the cool Devonshire Club in Devonshire Square. It’s extraordinary how those areas around Liverpool Street have been transformed over the past few years.

My job was to provide a view of the long terms savings, investment and protection markets for the Four Broadgate FS team. Quite a large topic for a ninety minute presentation and discussion; particularly as everything seems to be “up for grabs”. But, from my perspective,  there were some clear themes. “Robo” players are struggling to gain traction and achieve business plans. Some will run out of money. and it’s unclear what will happen to their customers. Some will be very successful and it’s not too difficult to guess who might be the winners.

As far as retail asset managers are concerned, life will be more difficult for most. In my opinion The FCA “value for money” initiative is maybe a bit naive and misguided. But it will no doubt reduce margins for many players. Further consolidation is inevitable. But if you look at the current market cap of Aberdeen Standard relative to the historic market cap of Standard Life, you will see that consolidation is definitely not a panacea.

Turning to the life company sector, I suggested that, for most, their entries into the platform space have been pretty unsuccessful and the £1BN they have spent on re-platforming will have wrecked what are probably the third iterations of their original business plans. God may no longer be “on the side of the big battalions”