As speculation mounts about what will be in the Labour government’s first Budget in late October, advisers will be closely monitoring the media and considering the potential tax changes and the impact on their clients.

While advisers can offer clients reassurance that they’re ready to step in and manage any changes post Budget, they’re limited in the actions they can take now, given there’s no certainty about what’s going to be announced.

However, since the government came into power, its focus has been on growth, and it has taken quick, decisive action to help generate more money for public services and for potential tax cuts.

Both the Prime Minister and the Chancellor have spoken widely about the need for more ambitious investment. They’ve already made a pledge to increase house building and look set to introduce a new Pensions Schemes Bill that may encourage more pension fund assets to be invested in the UK, as well as back infrastructure projects.

In a short space of time, the new government has demonstrated its clear commitment to boost the economy. This has already led to rising confidence in the markets, and the possibility of new investment opportunities for UK savers.

Why advisers should consider cash within their proposition

Growing confidence in the markets is good news for long-term savers. Over the past couple of years, market volatility and high interest rates have driven many clients to move money into cash. This has, however, created a challenge for advisers.

Not only does it hinder them from offering a full holistic service if their clients’ cash savings aren’t visible, but clients may forget about fixed term deals ending, or spend the money without considering consequences over the longer-term.

And while none of us expect interest rates to fall back to where they were, the indications are that they will gradually fall.

It’s for these reasons that advisers should consider managing clients’ cash savings as part of their proposition. As well as broadening out their advice service, it means advisers are in the best position to support clients during times of market volatility, and, as part of a holistic financial plan, take advantage of opportunities.

Perhaps most importantly, if an adviser is actively managing client cash, the money is in the right place when the time is right to reinvest part of it, even gradually, back into the market.

This is where abrdn Wrap can help.

A platform partner that offers an easier way to manage cash

The recent addition of cash solutions to abrdn Wrap’s Personal Portfolio means advisers can manage more client assets all in one place and are in the best position to take fast action where and when they need to.

While advisers can access a range of fixed term and notice accounts offering competitive interest rates for clients, the cash is also readily available to reinvest when agreed by the adviser and their client as part of a holistic plan.

And when cash in fixed term deposits matures, it stays on the platform for the adviser to take the necessary action.

One of the many advantages of abrdn Wrap’s cash solutions is the superior level of integration it offers. Client cash is seamlessly included in existing plans and processes and is available to view on the client portal.

Other benefits include:

Holding cash as part of clients’ long-term financial plans is becoming more common and means advisers can have more control. And with confidence in the economy set to grow, now is the right time to bring client cash onto abrdn Wrap so advisers can easily and actively manage it with the platform’s cash solutions for good client outcomes.

Visit Cash Solutions on Wrap or speak to one of our team

Take a look at the other articles by Alastair Black in the series

The value of investments can go down as well as up and your clients could get back less than they paid in.

The views expressed in this blog should not be regarded as financial advice.