
Reeves is right, but she is walking a tightrope — with our money
The government is on a mission to get more savers investing in the stock market. Reeves is planning an advertising campaign to help explain the benefits of investing — rather than highlighting the risks — and from April the Financial Conduct Authority, the City regulator, will offer 'targeted support' that will allow banks to alert customers to specific investment opportunities. 'For too long, we have presented investment in too negative a light, quick to warn of the risks without giving proper weight to the benefits,' Reeves said.
But she didn't stop there. The chancellor also wants to roll back regulatory rules, not just for investment products (risk warnings will be tempered) but also for mortgages (so that it will be easier to borrow more).
Encouraging more people to invest; offering bigger loans to hopeful first-time buyers; and forcing pension funds to invest in the UK. It's all part of the government's masterplan for growing the economy. And for much of this she's right. It is true that UK savers are not keen on investing in the same way as our American counterparts. This can be seen clearly in how we use Isas, with two thirds of accounts held in cash rather than stocks and shares. According to a YouGov survey, 55 per cent of the public were unwilling to invest in stocks and shares.
Most of us need to invest more and stop our love affair with cash. There is a belief that investing is akin to gambling — not helped by the stringent 'your investment can go down as well as up' warning displayed on every money billboard, piece of paperwork and website. Savers so often forget that leaving your money in cash isn't risk-free, especially in a high-inflation environment. More savers need to become investors.
But let's not forget why those regulatory rules were introduced in the first place. Are we now heading back to the hazy days of 2008 when you could get a loan for more than a property was even worth? Light regulations, then a crash, then tighter regulations: it's the same old merry-go-round, with seemingly no lessons learnt from the last ride.
• How to get a nation of savers investing
And again, as is so often the case, politicians are ignoring that this is our money, not theirs, that they are playing with.
The right choices need to be promoted. So much could go wrong if the wrong advice is given or unsuitable products are pushed. Investing in high-risk vehicles such as the long-term asset fund that invests in private markets and infrastructure assets could open the door to a potential mis-selling scandal. Yet the plan is for savers to be able to do this through their Isas.
For most beginner investors, the best way to dip a toe into the market is typically by investing in a standard tracker fund. Not only will your assets be diversified (as you invest in often hundreds or even thousands of different companies to spread your risk), you will also keep charges low.
Banks, which will offer this new targeted support, typically only have a limited number of investment products on offer and while that often includes a tracker, they tend to be more pricey than the industry average.
• The cheap and easy way to invest (without the risk)
As for mortgage lending, as I've written before, there's a fine line between responding to the needs of borrowers and putting them in a difficult position if rates were to take another turn or property prices were to fall.
It could be a risky business — but then, never being able to get on the property ladder could be the greatest risk of all.
Risk can pay off, but we're walking a tightrope. It's all about getting the balance right.@JohannaMNoble
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The Independent
27 minutes ago
- The Independent
Charity watchdog's five-year fight for the truth about Aspinall Foundation
Leaving Number 10 in disgrace after the Partygate scandal three years ago has not stopped Boris Johnson getting rich ever since. He has earned millions from books and lecture tours, enough to buy a £4m Oxfordshire manor house for him, wife Carrie and their children. It was a different story when the couple were in Downing Street in January 2021 before the Partygate antics surfaced. They were in desperate need of money after Mr Johnson's expensive divorce – and what became known as the 'wallpapergate' affair – left their finances in tatters. He was criticised after failing to disclose secret Tory funding for a lavish refurbishment of their Downing Street flat by interior designer Lulu Lytle. It was at this moment that the couple received a much-needed – and timely – cash injection. Carrie Johnson, or Carrie Symonds, Mr Johnson's fiancee as she then was, was hired by the Aspinall Foundation wildlife conservation charity as director of communications on an estimated 'high five-figure salary'. Just two months after Mr Aspinall signed Ms Johnson, hailing her as a 'huge asset', she had to defend it when it was hit by a potential scandal. It emerged that the Charity Commission had opened a 'regulatory compliance case' investigation into the Aspinall Foundation in 2020. The matters being investigated by the watchdog pre-dated Ms Johnson's arrival at the charity and there is no suggestion she was the subject of investigation. She played down the gravity of the situation, saying such action was 'commonplace during routine regulatory checks'. However, any notion that it was commonplace was blown out of the water weeks later. Then, in March 2022, the commission announced a statutory inquiry – its most serious form of investigation – into the Aspinall Foundation and its sister charity Howletts Wild Animal Trust. It was looking into 'serious concerns about the governance and financial management after reports of possible conflicts of interest and related-party transactions' of both – while adding that the announcement was not in itself a finding of wrongdoing. Extraordinarily, five years after first sounding the alarm bell, the commission still has the Aspinall Foundation in its crosshairs. Two months ago it took its most drastic action yet, sending in troubleshooters – interim managers – to the foundation after 'fresh issues of concern were identified requiring us to embark on a further phase of investigation'. The Charity Commission's code of practice spells out the seriousness of this step. It states that it can appoint interim managers to act as 'receivers and managers' after a statutory inquiry – and 'if it is satisfied there has been misconduct and/or mismanagement in the charity's administration or it is necessary to protect the charity's property'. Using language akin to policing, it explains the aim is to 'detect, prevent or disrupt misconduct or mismanagement.' Misconduct is defined as 'any act that the person committing it knew – or ought to have known – was criminal, unlawful or improper'. Moreover the interim managers can take over the charity completely, excluding trustees from decision making. One of the most striking aspects of the commission's five year investigation into the Aspinall Foundation is its relentlessness. It began informal enquiries in July 2020; in November 2020 it was sufficiently concerned to open a 'regulatory compliance case'; in March 2021 that became a 'statutory inquiry' – its most serious type of investigation – and now it has gone even further, sending in interim managers. The focus of the investigation has been the same throughout, flagging up concerns about 'governance; financial management; conflicts of interest; unauthorised trustee benefit; whether trustees have complied with their duties under the law.' Allegations against the Aspinall Foundation, mainly based on its accounts, include allowing trustees' chairman Mr Aspinall, 65, to rent its palatial HQ, Howletts House, for £2,500 a month; paying £150,000 to his wife, Victoria, for 'interior design'; making loans to Mr Aspinall - in 2019 he reportedly owed it £113,000, and paying £124,000 for accountancy to Alvarium, a company of which Charles Filmer, a former Aspinalls trustee was a director. Allegations against the Howletts Wild Animal Trust include paying a £30,000 a year pension to Mr Aspinall's step mother Lady Sarah Aspinall for 'gardening services'. The charity has defended itself in the past saying the payments to Victoria Aspinall were conducted 'at arms length', adding that the fees were 'subject to a rigorous benchmarking exercise to ensure the foundation received value for money'. It has said Mr Aspinall repaid all debts to the charity. The Howletts Wild Animal Trust has reportedly said previously that Lady Sarah was entitled to her £30,000 a year for 'prior service as head gardener for many years'. The Charity Commission has wide ranging powers to act against charities where wrongdoing is found. They range from removing trustees to taking over the running of the charity and winding it up completely. The leadership of the non profit-making and unconventional Aspinall Foundation has always resembled a high society charitable affair involving three generations of the casino owning Aspinalls, Brexit supporting tycoons, eccentric aristocrats, glamorous women and maverick Tories like Boris Johnson and his political and personal coterie. The foundation was created by Mr Aspinall's flamboyant father, gambling tycoon John Aspinall, in 1984. He was a close friend of fellow gambler Lord Lucan, who disappeared in 1974, and was also close to anti-EU campaigner Sir James Goldsmith, father of Zac and Ben. John Aspinall's Clermont Gambling club in London became the venue for celebrity nightclub Annabel's, opened by Mark Birley in the 1960s. Mark Birley's son, Robin, is a former trustee of the Aspinall Foundation, but his time there predates the Charity Commission's inquiries. Robin Birley, who owns the 5 Hertford St private club in Mayfair, renowned as a meeting place for wealthy Brexit supporters, gave £200,000 to Nigel Farage's UKIP party and £20,000 to Mr Johnson's successful Tory leadership campaign in 2019. Mr Birley is the half brother of Sir James Goldsmith's sons Zac and Ben who have both been trustees of the Aspinall Foundation, but also left before any inquiries were launched. Zac Goldsmith was given a peerage and ministerial post by fellow Old Etonian Mr Johnson as prime minister when he lost his Richmond, Surrey Commons seat in 2019. Shortly before becoming prime minister, Mr Johnson wrote a 1,000 word paean of praise to Mr Aspinall, commending his 'wonderful' conservation work in a Daily Telegraph article. Zac Goldsmith is also a mentor and close friend of Mrs Johnson. Her entree into the Tory Party, where she became its head of communications and met Mr Johnson, was as a young constituency campaigner for Zac Goldsmith. Ben Goldsmith was given a post on the board of the Department of the Environment – where his brother was a minister – in Mr Johnson's administration. Damian Aspinall, who like his father, once owned a casino, is reputedly worth £200 million. Mt Aspinall's daughter Tansy, whose mother Louise Sebag-Montefiire was Mr Aspinall's first wife, is a trustee of both the Aspinall Foundation and the Howletts Wild Animal Trust. It has also been suggested that the youngest of twice married Mr Aspinall's three daughters, Freya, a model and internet celebrity, could succeed him as chair of trustees at the Aspinall Foundation. Freya is the result of a separate relationship by Mr Aspinall with actress Donna Air. He also reportedly dated supermodels Elle Macpherson and Naomi Campbell. The Aspinall Foundation has also faced criticism for some of its conservation work. In 2014 it was claimed that some members of ten gorillas released to the wild in Africa by the charity were killed. Mr Aspinall blamed one of the gorillas for the killings.


The Independent
27 minutes ago
- The Independent
Troubleshooters sent in at wildlife charity linked to Carrie Johnson
Troubleshooters have been sent in to investigate a charity linked to Boris Johnson 's wife following claims that its funds were used improperly by the multimillionaire socialite who runs it. The Charity Commission has appointed a team of high-powered legal experts to act as interim managers and take over key decision-making at the Aspinall Foundation, run by former casino owner Damian Aspinall. According to the watchdog's code of conduct, interim managers are imposed on a charity when it believes there has been 'mismanagement and/or misconduct'. It defines misconduct as any 'criminal, unlawful or improper' act. The Aspinall Foundation is a global conservation group that releases zoo animals back into the wild, working with its sister charity the Howletts Wild Animal Trust, which runs two wildlife parks in Kent. Both charities have been under the Charity Commission's spotlight for five years, with a statutory inquiry launched in 2021. Its latest decision to send troubleshooters into the Aspinall Foundation over 'fresh issues of concern' marks a major tightening of the screw. Carrie Johnson was recruited by the Aspinall Foundation in January 2021 in a senior communications role on an estimated 'high five-figure salary' when her partner Mr Johnson, whom she married in May that year, was prime minister. Mr Johnson has been one of the charity's highest-profile cheerleaders. There is no suggestion of any wrongdoing by either of the Johnsons. The allegations against the Aspinall Foundation include allowing its chair, Mr Aspinall, to rent its headquarters, Howletts House – a neo-Palladian, 30-bedroom mansion in Kent, set in a 90-acre estate – for £2,500 a month, equivalent to the typical cost of renting a large house in nearby Canterbury. The rent was increased to £10,000 a month after a revaluation. Other allegations include paying £150,000 to Mr Aspinall's wife, Victoria, for 'interior design', as well as making loans to Mr Aspinall. In 2019, he reportedly owed the foundation £113,000. Allegations made against the Howletts Wild Animal Trust include paying Mr Aspinall's step mother Lady Sarah Aspinall a £30,000-a-year pension for 'gardening services'. In a statement to The Independent, the Charity Commission said: 'Our inquiry into the Aspinall Foundation is ongoing. Towards the end of last year, fresh issues of concern were identified requiring us to embark on a further phase of investigation, and our investigators are working hard to pursue these at pace. 'The commission has now appointed interim managers to the Aspinall Foundation, who will work alongside the existing trustees on specific areas in line with the charity's governing document.' The Charity Commission only imposes interim managers on a charity 'if it is satisfied that there has been misconduct and/or mismanagement' and it is considered 'necessary to protect the charity's property'. Misconduct 'includes any act that the person committing it knew – or ought to have known – was criminal, unlawful or improper'. Mismanagement is defined as 'any act that may result in charitable resources being misused – or the people who benefit from the charity being put at risk'. The Charity Commission troubleshooters have been tasked with making any decisions that cannot be made by the trustees because of 'a conflict of interest', and with 'reviewing the make-up of the board of trustees'. Crucially, they have also been ordered to find out whether any of the trustees – or their family members – 'received a direct or indirect benefit from the charity'. Mr Aspinall's daughter Tansy is a trustee of both the Aspinall Foundation and Howletts Wild Animal Trust. Multimillionaire and Conservative peer Zac Goldsmith, a former minister and a close friend of Mr Aspinall and both the Johnsons, was an Aspinall trustee until August 2019. Lord Goldsmith's brother Ben, a Tory donor who was given an advisory post in Mr Johnson's government, was also an Aspinall Foundation trustee. Both left before the Charity Commission launched any inquiries. A spokesperson for the Aspinall Foundation said: 'We welcome the inquiry by the Charity Commission and will continue to work with them transparently, but until that has concluded we are unable to comment further to press.' A spokesperson for the Howletts Wild Animal Trust said: 'With the Charity Commission's inquiry ongoing, we are unable to comment further.' Carrie Johnson could not be contacted. The Aspinall Foundation declined to say whether she is still an employee.


Telegraph
27 minutes ago
- Telegraph
Former Dragons' Den star stripped of MBE over string of unpaid bills
A former Dragons' Den star has been stripped of her MBE after it was ruled she was in contempt of court. Julie Meyer, a 58-year old venture capitalist, was handed a six-month suspended prison sentence after she repeatedly failed to submit documents and attend hearings relating to £200,000 in unpaid legal fees. The Cabinet Office's recently published list of individuals who have forfeited the honour since August 2023 says Meyer was stripped of the MBE for 'bringing the honours system into disrepute'. She is one of two women on the list, the other being Paula Vennells, the former Post Office chief executive who forfeited her CBE over her handling of the Horizon IT scandal. Meyer, who was born in the US, was awarded the MBE in the 2011 Queen's Birthday Honours list for services to entrepreneurship. She was one of two new Dragons chosen for an online version of the BBC Two show in 2009, and was appointed as Lord Cameron's enterprise adviser in 2010. However, in 2022 she became embroiled in a legal fight with Farrers, a law firm who once represented the late Queen Elizabeth II. A warrant was then issued for her arrest after she failed to turn up to court on Feb 14 that year. Meyer said she had been unable to travel from her home in Switzerland due to conjunctivitis and not having received a Covid vaccine. But a judge ruled her medical evidence was not grounds to avoid attending the court hearings in person. It was claimed she owed Farrers almost £200,000, which represented her in a court case in Malta. The High Court heard she failed to pay Julian Pike, a partner at Farrers, £197,000 after claiming the firm had provided a poor standard of service which had been worth about £50,000. Mr Justice Kerr labelled Meyer a 'selfish and untrustworthy person'. He said: 'I am satisfied there is every prospect that the defendant will continue to flout orders of the court unless coerced into obeying them.'