2019/20 Tax Year Changes & April 2019 Update

2019/20 Tax Year Changes & April 2019 Update

2019/20 Tax Year Changes & April 2019 Update

New Aggregated Costs and Charges Template / Extended Intelligent Office Integration

 Friday, 5th April 2019

We have completed the latest upgrade to ATEB suitability on 5th April 2019.

Details of the changes can be found in the tables below, but some of the highlights are:

Extended Intelligent Office Integration

The Intelligent Office Integration has been enhanced to now offer more integrated data for Mortgage Plans and Fund data for Investment and Retirement Plans.

A full list of supported fields is available here:

http://support.atebsuitability.co.uk/support/solutions/articles/8000072031-intelligent-office-supported-fields

New MiFID II - Aggregated Costs and Charges Template

ATEB suitability now includes a simple and compliant approach for meeting the FCA’s mandatory Costs & Charges disclosure requirements for firms covered by MiFID II.

A new core template has been added to the system which provides users the ability to generate multiple documents per client using one of the following options:

  • Costs & Charges Illustration – Ex-Ante (done at outset for each new ‘product’ recommended, based on forecasts)
  • Costs & Charges Statement – Ex-Post (done at least annually, based on actual costs for the previous period)

Users also have the option to reference these Illustrations/Statements within their Suitability Reports and Continued Suitability Review Letters.

Please note - these templates have been based on TISA (Tax Incentivised Savings Association) industry guidance and will provide a framework that we believe will be appropriate for the majority of firms. However, by definition it cannot provide a universal ‘fits all’ solution due the variability of business models and scenarios possible. We therefore recommend you review these templates before use to ensure they will be relevant to your business processes moving forward.

Tax Year End Changes

As always, ATEB suitability has been fully updated to accommodate for changes to allowances, rates and reliefs in advance of the 2019/20 tax year.

Covering Letter now Optional

Following client feedback, the Covering Letter in the core Suitability Report template is now optional.

IHT Current Position Table

For reports written on a single basis, it is now possible to calculate the client’s current IHT position on a Joint (last survivor) basis.

Major Application Enhancements

Change at a glance

Location

Detail

Addition of new core template to accommodate Ex-Post and Ex-Ante costs and charges disclosure requirements.

Create a New Report → Select Type: Cost and Charges Illustration/Statement → Start Report → Costs and Charges Statement (Ex-Post) / Costs and Charges Illustration (Ex-Ante)

 

The new template provides a framework to assist firms meet the FCA’s Conduct of Business rules (specifically COBS 6.1ZA), which sets out the mandatory Costs & Charges disclosure requirements for firms covered by MiFID II.

Covering Letter now optional.

Getting Started → Report Details → Do you want to include a covering letter? Yes/No

 

Following feedback from our clients, users now have the flexibility to include or remove the covering letter prior to generation of their suitability reports.

Suitability Report

Change at a glance

Location

Detail

Changes made to the Charges and Supplementary Documentation sections.

Report Builder → Investment/Retirement Advice → Section Builder → Charges

Output text will be presented in the report under the heading ‘Charges’.

Report Builder → Investment/Retirement Advice → Plan Builder → Supplementary Documentation.

Output text will be presented in the report under the heading ‘Supplementary Documentation’.

To accomodate the new Costs and Charges Illustration/Statement core template, two new suggested text options have been added to the Supplementary Documentation section and the ‘Table Notes’ section of the Charges tables. This provides users with the ability to reference the Cost and Charges Illustrations/Statements enclosed with the report.

Use of hyphenated text.

Report Builder → Investment Advice/Retirement Advice/Mortgage Advice/Protection Advice

 

The use of hyphenated text has been reviewed and revised to provide consistency across all areas.

Change made to covering letter preamble text.

Getting Started → Report Details → Do you want to include a covering letter? Yes → Covering Letter Information

Output text will be presented in the report as the first paragraph of your covering letter.

 

Following client feedback, the following wording has been removed from the covering letter preamble text ‘By its nature, I’m afraid the report is a bit formal…’.

Change made to ‘Wills’ section.

Report Builder → Planning Ahead → Your Will

Output text will be presented in the report under the heading ‘Your Will’.

 

Following client feedback, reference to ‘establish’ has been replaced with ‘execute’.

Continued Suitability Review Letter

Change at a glance

Location

Detail

Changes made to the ‘Costs and Charges’ page of our Continued Suitability Review Letter.

Create a New Report → Select Type: Continued Suitability Review Letter → Start Report → Costs and Charges

Output text will be presented in the report under the heading ‘Costs and Charges’.

 

To accomodate the new Costs and Charges Illustration/Statement core template, the 'Existing Charges' tables have been removed from the Continued Suitability Review Letter and replaced with references to the new Costs and Charges Statement (Ex-Post).

Product Type - Investment & Retirement

Change at a glance

Location

Detail

Glossary and suggested text options provided throughout report updated in preparation for the 2019/20 tax year.

Report Builder → Retirement Advice/ Investment Advice & Glossary

Suggested text appropriately updated to accommodate for increases in the Lifetime Allowance, CGT Allowance and JISA limit among others.

Product Type - Investment

Change at a glance

Location

Detail

New ‘Recommendation Reasons’ and ‘Potential Disadvantages’ text added to our Investment Advice area.

Report Builder → Investment Advice → Plan Builder → Recommendation Reasons & Potential Disadvantages

Output text will be presented in the report under the headings ‘Product recommendation’ and ‘Potential disadvantages’.

New reasons and disadvantages text has been added to cover the flexible nature of ISA’s, including the ability to withdraw cash and reinvest in the same tax year.

Product Type - Retirement

Change at a glance

Location

Detail

Existing Defined Benefit Scheme

Report Builder → Retirement Advice → Plan Builder → Existing Defined Benefit Scheme → Plan Details → Pension Projection

Output text will be presented in the report under the heading ‘Pension Projection’.

Following client feedback, the ‘Desired Retirement Age’ value field has been removed from the ‘Existing Scheme Details’ table and placed under the ‘Pension Projection’ section.

Product Type - IHT

Change at a glance

Location

Detail

Changes made to ‘Current IHT Position’ table.

Report Builder → Introduction to Advice → Current IHT Position

Output text will be presented in the report under the heading ‘Current Inheritance Tax Position’.

For reports written on a single basis, users now have the option to draw through the NRB and RNRB band that would be inherited from a spouse/civil partner on death should they predecease the client, along with additional supporting text.

Glossary and text options updated in preparation for the 2019/20 tax year.

Report Builder → Introduction to Advice → Current IHT Position

Output text will be presented in the report under the heading ‘Current Inheritance Tax Position’ and ‘Glossary (Inheritance Tax Advice)’.

Reference to Residential Nil Rate Band of £125,000 has been updated to £150,000 and any reference to the 2018/19 tax year has been updated to 2019/20.

Please also see our collection of 'how to' guides, articles and hints/tips via an FAQ which is available now on our Help & Support Portal.

Our support team are available 9am - 5pm / Mon - Fri to answer any further questions you may have support@atebsuitability.co.uk / 0191 338 8177.

Many thanks for your continued use of ATEB suitability.

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