In a statement today (20 January) Broadstone said it is supportive of the Government’s objective to ensure that pensions are used for the primary purpose of providing an income for the member. While individuals may have other assets to use in their retirement or later life, it does not believe that pensions should be used as a vehicle for wealth transfer.

However, Broadstone holds concerns around the treatment of taxation around the value and control of lump sums both from Defined Benefit (DB) schemes and from death in service policies.

The changes made in 2015 which allowed for significant tax advantages on death benefits where the member is younger than 75 on death have always appeared unduly generous.

Many DB schemes pay out lump sums on death but these are often by scheme design and not any form of wealth transfer- they are purely functions of the scheme’s rules and we believe these lump sums should continue to be exempt from Inheritance Tax.

Death in service lump sums are often paid in respect of younger people experiencing a shock of early death. Thankfully, these are rare, but they are there to help next of kin at the worst possible time with the benefit put in place to help the family deal with the tragic loss of a loved one rather than for wealth management purposes. So again, Broadstone does not believe it should be in the scope of the policy to apply Inheritance Tax.

Both of these lump sums, if paid within 2 years of death, would be assessed against the Lump Sum and Death Benefit Allowance, and are subject to income tax or a standalone special tax charge if paid later. This seems sufficient should government policy wish to limit the size of these benefits.

David Brooks, head of policy at Broadstone, said: “It is understandable that the Government is reforming the Inheritance Tax regime to ensure pensions are used for their primary purpose of providing income in retirement rather than enabling wealth transfer.”
“However, we believe there are a few elements of the proposals that could be loosened, particularly where the primary purpose of lump sum payments is not for estate management. Tightening this regulation will create an IHT framework that ensures tax reforms are born by those with the broadest shoulders without unnecessarily penalising pension savers and their families in emotional and stressful circumstances.”

“We are also concerned about the impact on “common law” partners who could also be treated unfairly compared to the current tax situation on death and we would urge the Government to consider updating the IHT tax system for the living circumstances of society.”

In a statement it said the  “comprehensive review, which involved surveys, desk-based analysis, and on-site visits, highlights the critical role whistleblowers play in detecting, escalating, and addressing misconduct”.

It also emphasised the importance of robust whistleblowing policies and procedures in fostering a speak-up culture and promoting ethical behaviour.

The report outlines eight key themes and findings, including whistleblower protection, policies and procedures, governance, and training and awareness.

The DFSA observed that many entities are exceeding regulatory requirements by implementing additional measures to build trust in whistleblowing arrangements, encourage transparency, and embed whistleblowing practices into their corporate culture.

All Regulated Entities are encouraged to consider the findings and incorporate them into their operations.

Future engagements with the DFSA may require entities to demonstrate how they have addressed the review’s key areas.

This increase in wait time comes as the government prepares to make pensions liable to inheritance tax (IHT) which could further delay the grant of probate in many cases.

The number of probate cases taking between 21 and 23 months to be granted has risen by 132% highlighting the ongoing strain on the probate process even before pension wealth becomes part of the process in April 2027.

Length of time taken to grant probate
Year Over 6 months/Over 9 months/Over a year/ Over a year and a half/Between 21-23 months

2020 3,267 1,670 587 122 57
2021 5,332 2,584 891 230 113
2022 5,067 2,681 930 205 97
2023 10,103 4,392 1,371 259 132
2024 (Jan-Mar) 2,722 1,425 490 124 65

Percentage change (2020-2023) 209% 163% 134% 112% 132%

According to the government, a grant of probate should usually be obtained within 16 weeks of submitting an application.

A grant of probate is a legal document that confirms the authority of the executor(s) named in a deceased person’s will to manage and distribute their estate according to the will’s terms. It is required in many cases to access the deceased’s assets, such as bank accounts, property, and investments.

Delays in obtaining a grant of probate can have several adverse effects:
• Financial strain: When probate is delayed, the deceased’s assets, including bank accounts, remain frozen, creating financial stress for beneficiaries.
• Property and asset management: Properties in the deceased’s name cannot be sold or properly managed without probate, leading to potential depreciation or disrepair.
• Investment risks: Delays prevent reallocation or management of investments, potentially resulting in financial losses.
• Tax liabilities: Late payment penalties or missed tax advantage deadlines can arise.
• Distribution delays: Beneficiaries may face financial or personal difficulties waiting for inheritance, exacerbating family tensions.
• Emotional stress: Prolonged uncertainty can add to the emotional strain during an already difficult time.

Jon Greer, head of retirement policy at Quilter said: “Under the current set of rules, we are already witnessing huge delays in granting probate causing significant stress for grieving families. With pensions set to become part of the taxable estate from April 2027, the situation is only likely to worsen.

“Pension schemes often remain unaware of a member’s death immediately, delaying legal and tax processes. This means legal personal representatives will face an even greater burden, consolidating information across multiple pension schemes.

“These delays and added responsibilities compound an already difficult situation. Executors, often close kin or friends, will need to input detailed information, adding complexity to an already time-intensive task. Pension schemes will have to decide whether to continue with discretionary processes for identifying beneficiaries, which can add significant time.

“Moreover, delays may cost families significantly. HMRC proposes charging interest on IHT owed after six months following death, currently at 7.25%. Interest will likely be charged on IHT due from schemes even where delays are not caused by them, quickly mounting up.

“To mitigate these issues, it’s crucial to organise your estate in advance. Utilising trusts and making lifetime gifts can help reduce the complexity and potential tax liabilities. Engaging a financial adviser and having a will in place can also ease the process for executors.”

Around half of the 1,000-plus respondents cited this as a top concern keeping them awake at night – more so than ‘paying rent’ (49%), the ‘cost of medical insurance’ (39%) and ‘retirement funding’ (32%).

By contrast, UAE residents are relatively unconcerned about financial obligations such as paying for events like their child’s wedding (9%), a summer holiday (16%) and the mortgage (19%).

The survey, conducted between October and December 2024, asked the same question to residents across various demographics – by gender, age, location, ethnicity, marital status and salary range. In general, the factors that keep respondents awake at night are the same for everyone.

“We can see some consistent themes in the UAE about how residents think about their financial situation, and what’s important or concerning for them,” said Stuart Shilcock, Senior Executive Officer Middle East of IFGL, the provider of investment, savings and protection solutions to expats and wealthy locals around the world.

Five other notable findings from the IFGL survey include:

1. Women are generally more concerned than men when it comes to saving enough and funding retirement.

2. Retirement funding is more of a worry for individuals in the highest income group (over AED 25,000) compared with respondents in the lowest group (under AED 10,000).

3. Western and Arab expats consider savings levels and funding retirement as much bigger factors keeping them awake at night than Emirati or Asian respondents – while Emiratis are much more concerned than other ethnic groups about paying for the future education of their children.

4. Not saving enough and funding retirement are significantly more worrying for single people than those who are married, especially if the latter already have children.

5. Younger respondents (18-24 years old) worry much more about their levels of savings than any other age group, although this means they have more time to start planning to make a difference.

“For many people in the UAE, financial preparation and professional advice appear to be essential, and could help them sleep better at night, whoever they are,” added Shilcock at IFGL, which has $25bn in assets under administration.

Effective immediately, Mike Hankin (pictured right) and Logie Fitzwilliams (pictured left) will share chief executive responsibilities.

Hankin has served as the sole CEO and president since the firm became private and independent in 1998. Logie Fitzwilliams started with Brown Advisory in 2003, and has most recently served as the head of international business and global head of sales.

Together, the firm’s independent board of directors and Hankin decided that a Co-CEO structure would be the best design to provide the leadership needed to meet the growing needs of the firm’s clients, colleagues and shareholders.

As a team, Hankin and Fitzwilliams, who have worked closely together for the last 15 years, will deepen the firm’s partnership and collaborative culture to drive results for all stakeholders. This evolution represents the most significant change in Brown Advisory’s leadership since the firm adopted its current private, independent structure in 1998.

As Co-CEOs – and Co-Presidents – they both will serve on, and report to, the board that governs the firm.

Hankin said: “I could not be more excited about this natural next step in the leadership of the firm. In the building of a global investment team and business to complement what we have been cultivating in the US, Logie has led with the qualities that we think make him the ideal person to share responsibility for leadership of the entire firm.

“He understands that to be truly client first, we need to be obsessively focused on listening to our clients in the U.S. and around the world. He understands that to build successful teams, we need to also listen to our colleagues. We need to make sure that our colleagues have the resources and training necessary to live up to our clients’ expectations.”

He added, “Importantly, Logie and I share the existential commitment to Brown Advisory remaining a private and independent firm. Our ownership structure – where every single colleague owns equity in the firm alongside an important set of outside shareholders who provide critical advice and support – will remain the same; it is the structural backbone to being the client-first firm we aspire to be over generations.”

Fitzwilliams said: “It is a tremendous honor to join Mike in the leadership of Brown Advisory. Throughout my 22 years at the firm, I have been privileged to work with him closely and we have built a deep relationship that will serve as the foundation for our partnership as Co-CEOs. Most importantly, from the outset we have had a shared focus on investing for, advising, and serving our clients at the highest
possible level, and a common commitment to the future of Brown Advisory as a private, independent, entrepreneurial and nimble business.”

Bob Flanagan, lead director of the Brown Advisory Board, said: “The process and thinking behind this decision was extensive, productive and always forward looking. We considered many options and scenarios to ensure that Brown Advisory had the best leadership in place for the present and future. Each of us believe that the firm, its clients and its colleagues will be best served with Mike and Logie acting as CEOs,
together.”

Bea Hollond, director and chair of the firm’s International Advisory Board added: “Being based in the U.K., I have had the direct opportunity to work with and advise Logie on the firm’s international business strategy. I have seen first-hand the incredible impact he has made for Brown Advisory and its clients. I know the Directors all share my excitement in welcoming Logie to the Board, and to seeing Mike and Logie work together as a team.”

Under Hankin’s leadership, the firm has grown from overseeing client assets of $2bn in 1998 to now almost $170bn– representing an annualized growth rate of 17%. Today, the firm’s clients are served by nearly 1,000 colleagues located in 14 offices across the United States, a significant office in London and strategic bases in Frankfurt, Singapore, and Tokyo.

The firm’s clients—a collection of individuals, families, nonprofits, charities, institutions and financial intermediaries—are located in 51 countries and in every U.S. state. Brown Advisory also manages fund platforms – private funds, mutual funds and now ETFs – in the U.S., as well as platforms outside of the U.S. in Ireland, Bermuda and the Cayman Islands.

Quintin Ings-Chambers will take over as head of the international business. He joined Brown Advisory in 2012 as Head of the firm’s International Private Client and Charity business. He has over 25 years of investment industry experience. Prior to joining Brown Advisory, he served as an Investment Director at SG Hambros and as a Director in the private client and charity group of Baring Asset Management.

He will report into Logie Fitzwilliams.