Money Covered: The Week That Was – 5 September 2025

Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.

The fourth episode of Season 4 of our podcast, Money Covered – The Month That Was, where the team looks at Employment Practices Liability insurance and its relationship to Directors & Officers insurance, is now available.

To listen to this and all previous episodes, please click here.

Headline development

Autumn Budget to be delivered on 26 November

The Treasury confirmed this week that Chancellor Rachel Reeves will deliver the Autumn Budget on 26 November.

While Labour have reiterated their promise not to raise taxes on working people by raising income tax, national insurance, or VAT, it is nevertheless expected that the budget will be focused on increasing taxes to fill the £40b 'black hole' in the budget.

Rumours are swirling that there are plans to apply national insurance to rental income. It has also been speculated that a wealth tax could be implemented, though it has also been rumoured that the chancellor will refuse to implement this, despite pressure from Labour MPs.

Pension professionals, IFAs, and tax professionals will also be interested to note that there is also speculation about reducing the tax-free pension lump sum. The same theory arose last year but was ultimately not implemented.

To read more about possible policies we will see in the Autumn Budget, click here.

Accountants

Regulator warns accountants of emerging money laundering threats

The regulator has warned the accountancy profession that they face new money laundering threats amid a complex landscape with emerging technologies, evolving criminal methodology and international risk profiling.

Whilst the 2025 National Risk Assessment (NRA) has confirmed that the overall risk level has not changed since 2020 - the landscape of money laundering has changed with the emergence of fintech, crypto and gambling – which are considered high risk sectors. There are also further emerging risks with the re-rating of casinos, trust and company service providers and the football industry.

The NRA and regulator have therefore warned the profession to enforce vigorous risk-based compliance processes – with client due diligence, ongoing client monitoring, internal training and sufficient internal processes noted to be of particular importance.

To read more, click here.

Mortgage brokers

Incorporating lifetime mortgage advice into IHT planning

Inheritance Tax receipts hit £2.2 billion in the first quarter of the 2024/25 tax year - £100 million more than the same period last year. With thresholds frozen until at least 2028 and asset values continuing to rise, more estates are being dragged into charge.

People previously outside the scope may now be subject to IHT. For clients with property-heavy estates and limited cash, early planning is key. Traditional routes like gifting, exemptions and trusts still have a role, but lifetime mortgages should now be part of the conversation.

When used appropriately, equity release can reduce the value of the taxable estate without forcing a sale or downsizing. They can be a practical option – especially where rising property values are driving the IHT exposure. They need to sit within a proper estate planning strategy, with tax and legal input.

It is clear that more estates will face IHT in the coming years. Raising these options early gives clients time to act and gives advisers more control over the outcome.

To read more please click here.

Pensions

Pension Scheme Bill to be amended following the Virgin Media fall out

Following the Court of Appeal ruling in the Virgin Media case last year, the pension industry was left in limbo in respect of defined benefit schemes being contracted out of the state pensions scheme between 1997 and 2016.

The UK Government are now intervening to provide certainty to the industry by tabling several amendments to the Pension Scheme Bill. The amendments will enable schemes to retrospectively obtain written actuarial confirmation of compliance with the necessary standards for contracting out.

It will be for scheme trustees to engage with actuaries in addressing any Virgin Media issues in a pragmatic way for the benefit of the members.

To read more, please click here.

Regulatory developments for FCA regulated entities

FCA urged to reconsider targeted support annuity rules

The FCA's consultation on the introduction of "targeted support" closed on 29 August and whilst the framework has been welcomed in the main, industry commentators have urged the FCA to reconsider simply signposting consumers to MoneyHelper's annuities comparison tool.

In accordance with the current targeted support framework, firms are unable to specifically refer to a particular annuity in client conversations. Rather, they are limited to signposting consumers to MoneyHelper's comparison tool. There are concerns that this will reduce the effectiveness of the targeted support service as MoneyHelper is unable to help consumers with the actual product purchase.

It remains to be seen whether the FCA will take this feedback into account - the FCA will aim to publish a policy statement with their final rules by the end of 2025.

To read more on the FCA's consultation, please click here.

FCA urges caution in Pension Schemes Bill

Giving evidence before a Parliamentary committee regarding the Government's proposed Pension Schemes Bill on Tuesday, FCA Cross-cutting Policy and Strategy Director Charlotte Clark CBE warned that proposed 'safe harbour' exceptions to trustee mandation provisions would need to be addressed in secondary legislation.

In response to questions from Conservative MP and assistant whip Rebecca Smith, Clark emphasised that, while a lack of engagement in pensions investments was an industry-wide issue, whether mandation of trustees was the correct resolution was a political question.

However, she agreed that the level of detail in the Bill as written was insufficient to grant trustees certainty about the level of regulatory oversight. As such, she explained that the FCA would need to respond to the passage of the Bill by creation of more specific rules, the shape of which would be later determined.

You can read Clark's evidence to the committee here.

Case law updates

Arnold Holdings Ltd v Keelys [2025] EWCC 44 (29 July 2025)

An appeal has been dismissed by the County Court to grant a retrospective extension of time for service of a claim form.

The claim form was taken to the court a day before limitation expired and the court issued the claim form nearly two weeks later. The court then attempted to serve the claim form on the defendant, despite the Claimant giving instructions that they would serve the claim form (the parties agreed to treat this service as ineffective).

The Claimant came into difficulty when trying to obtain the sealed claim form from the court and therefore served the unsealed claim form on the defendant. The defendant acknowledged the claim and indicated a jurisdictional challenge. The Claimant therefore applied for a retrospective extension, but this was not granted.

The issue here was whether the Claimant had taken all reasonable steps in the circumstances, which the court did not think they had done.

To read more please click here.