AJ Bell (AJB) 2024年年度報告「LSE」.pdf

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1、Made easyAJ Bell plc Annual Report and Accounts 2024InvestingAs one of the UKs leading investmentplatforms,our aim is to help our customers take control of their investments.We want them to have peace of mind because they are investing in their future,and closing the gap between where they are today

2、 and their aspirations for later in life.Thats why everything we do,fromourgreat-value products toourexpert customer service,isdesigned to makeinvesting easier.Strategic report01 Our purpose04 Investment case06 Chairs statement08 Chief Executive Officers review16 Market overview20 Business model22 K

3、ey performance indicators24 Stakeholder engagement26 Section 172 statement28 Responsible business46 Climate-related Financial Disclosures53 Non-financial and sustainability information statement54 Chief Financial Officers review58 Risk management61 Principal risks and uncertainties67 Viability state

4、mentGovernance70 Chairs introduction72 Board of directors74 Corporate Governance report84 Nomination Committee report88 Audit Committee report94 Risk&Compliance Committeereport98 Directors Remuneration report120 Directors report123 Statement of Directors responsibilitiesFinancial statements126 Indep

5、endent auditors report to the members of AJBell plc132 Consolidated income statement133 Consolidated statement of financial position134 Consolidated statement of changes in equity135 Consolidated statement of cash flows136 Notes to the consolidated financial statements 164 Company statement of finan

6、cial position165 Company statement of changes in equity166 Notes to the Company financial statementsOther information172 Consolidated unaudited five-year summary173 Glossary174 Definitions174 Company informationAssets under administration(AUA)1 92.2bn+21%Performance highlightsRevenue269.4m+23%Total

7、customers1557,000+13%Profit before tax(PBT)113.3m+29%Find out how we are makinginvesting easy andmoreatajbell.co.uk/groupHighlights Delivered excellent customerservice 4.8-starTrustpilot score Investing in our easy-to-usepropositions Reduced charges on both our advised andD2C platform propositions I

8、mpressive customer growth Totalplatformcustomers surpassed half amillion Record financial performance AchievedrecordAUA,revenue and PBT1.Total assets under administration(AUA)and customers include non-platform AUA and customers.See pages 22 and 23 for definitions of Alternative Performance Measures.

9、How we are makinginvestingeasyOur purpose is to help people invest We want to make investing as easy as possible for our customers to enable them to take control of their finances and realise their financial goals.why we existWe serve the needs of our customersWe offer a range of products to help ou

10、r customers and advisers achieve their financial goals.We make investing easyOur business model and strategy contain the key focus areas and activities that ensure we achieve our purpose of helping people to invest.There are three strategic drivers that harness what we deliver to customers and advis

11、ers and how we do it.We are creating sustainable value.for our stakeholders.Our guiding principles are the foundation of our company culture.They help drive our behaviours and decisions and remind us that customers are at the heart of everything we do.by growing our business responsiblyWhat we doHow

12、 we do itWho we deliver forAdvised marketEase of useWe make it easy for customers to invest TrustWe earn the trust of our customers Low-costWe offer great value to our customersPrincipledWe act withintegrityKnowledgeableWe know our stuffStraightforwardWe simplify thecomplexPersonalWe put peoplefirst

13、AmbitiousWe set high standardsOur customers and their advisersOur peopleOur shareholdersOther stakeholdersResponsible propositionsResponsible employerSupporting our local communitiesEnvironmental awarenessD2C marketAJ Bell plc Annual Report and Accounts 20241SimplifiedComplex We develop our platform

14、 with a focus on making it easy to invest.For over 25 years,AJBell has been providing award-winning products and services to make investing easyandaffordable.We take the fear out ofinvesting for our customers and advisers,withour easy-to-use,no nonsense propositions.We have been AJBell clients for a

15、lmostfour years.We are both in our70s and were new to investing.Thewebsite is easy to navigate and packed with information for novices likeus.They made it so easy.On the occasions weve had to speak to Dealing Services,Customer Services etc everyone has been easy to talk to professional,polite,knowle

16、dgeable and very helpful.The weekly Shares Magazine they produce has really helped us it feels like its written justfor us!Gilly Groom AJBell customerMaking investing easyAJ Bell plc Annual Report and Accounts 202432AJ Bell plc Annual Report and Accounts 2024Strategic reportGovernanceFinancial state

17、mentsOther informationRecurring ad valorem 75.0%Transactional 13.1%Recurring fixed11.9%Investment caseWhy invest in AJBell?Since our IPO in 2018 we have delivered consistently strong organic growth in customers and AUA,driving market share gains in the growing platform market.Thisgrowth,combined wit

18、h our efficient business model,has delivered high levels ofprofitability and cash generation,enabling us to pay a progressive ordinary dividend each year.Our focus on providing easy-to-use,low-cost products alongside market-leading customer service means that we arewell-positioned to continue to cap

19、italise on the significant growth opportunity.”Michael Summersgill Chief Executive Officer1 Our market 5 Our business model4 Our people 2 Our propositions6 Quality of earnings3 Our customers7 Cash generationA growing market within the UK retail savings and investment industry A profitable and scalab

20、le platform with long-term margin expansion opportunitiesAn entrepreneurial management team anda highly engaged workforceAn award-winning platform operating in both advised and D2C market segments,with in-house investment solutions Largely recurring revenue,from a diversified mix of revenue streamsA

21、 growing base of loyal,high-qualitycustomersA highly cash-generative and capital light model which supports a progressive annual ordinary dividend The platform market continues to benefit from long-term structural growth insociety and demographics,government legislation,and technology.Our dual-chann

22、el platform delivered another period ofstrong organic growth.Our single operating model ensures efficiency in serving both markets and provides us with opportunities for margin improvements.Certified as a Great Place to Work with atotal score of 83%,placing us amongst the best large companies in the

23、country.We continue to encourage our staff to share in the success of our business,with record numbers of employees partaking in share ownership in the year.We continually invest inour propositions with a focus on ease of use,delivering a number ofdevelopments in theyear.Our range of simple,low-cost

24、 investment solutions continues to perform exceptionally well with total AUM increasing by 45%to6.8 billion.Our diversified revenue model is resilient in different macroeconomic conditions,delivering strong revenue growth of 23%in FY24.Improved retail investor sentiment and strong equity markets hav

25、e helped to drive custody fees and transactional feeshigher in FY24.Total platform customers surpassed half a million this year,increasing from just below 200,000 when we listed in 2018.We introduced significant pricing reductions during theyear,sharing the benefits of scale toremain highly competit

26、ive in themarket.Net cash generated from operations totalled 96.3 million,with cash balances reaching 196.7 million at the year end.Total ordinary dividend of 12.50 pence per share and returning upto 30 million ofsurplus capital in theform of share buybacks in FY25.Total addressable market 3tnPBT ma

27、rgin 42.0%Staff with shares inAJBell 79%Customer retention rate94.2%Diversified mix of revenue types 269.4mNew customers in FY24 66,000Successive years ofordinary dividend growth 20 yearsCurrent platform market AUA1.1tnAJBell platform AUA 86.5bnSee p16See p20See p34See p10See p54See p12See p54201920

28、2412.50p4.83p4AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 20245Strategic reportGovernanceFinancial statementsOther informationFive-year dividend growthpence6.165.006.967.3711.9610.7512.5020202021202220232024Ordinary dividendSpecial dividendChairs statementBuildi

29、ng on a strongcultureAJBell rightly prides itself on itsopenand transparent culture whichpermeates throughout the whole organisation.”Fiona ClutterbuckChairDear shareholder This year I have thoroughly enjoyed immersing myself in the business to gain adeeper understanding of its drivers and culture.A

30、JBell is a fantastic business;with astrong management team,collaborative Board and a track record of delivering growth.Our dual-channel business model is a real strength in the investment platform market and our focus on ease of use and low-cost,ensures we are well-positioned to deliver sustainable

31、growth for the longer-term.We have delivered an excellent set of results this year with PBT of 113.3 million.Over the past 12 months customer numbers increased by 66,000 to 557,000 and we delivered 6.1 billion of net inflows,ending the year with total AUA of 92.2 billion.Our strong performance refle

32、cts the investment we have made in our brand and propositions and our ongoing commitment to deliver excellent customer service,alongside improved retail investor confidence.Michael discusses our business performance and strategic progress in more detail on pages 8 to 15.This year the Boards primary

33、areas of focus were succession planning at both Board andExecutive Committee(ExCo)level and onboarding of new members,as well as ensuring that the right strategy is adopted to deliver sustainable success for the Company.As aBoard we have aimed tosupport and appropriately challenge ExCo on their stra

34、tegic priorities,for the benefit of all our stakeholders.Compliance Committee,succeeding Simon Turner who completed nine years service and stepped down from the Board on 31 March 2024.On behalf of the Board I would like to thank Simon for his significant contribution to the Company during his tenure

35、 and particularly for his support with the succession process for the Chair of Risk&Compliance Committee and ensuring a smooth handover to Fiona.We were also delighted to welcome JulieChakraverty to the Board on 1 June 2024,concluding our search for a further independent Non-Executive Director.Julie

36、 brings more than 30 years experience in the financial services,consumer and cyber sectors which will be invaluable to the Board as we continue to focus on our strategic priorities.The Board values diverse skills,experience andperspectives around the board table.With the appointments of Fiona and Ju

37、lie during the year,our position has strengthened.The recent external Board evaluation and results from work commissioned on cognitive diversity confirmed that we have well-rounded Board skills and diverse thinking across the Board andExCo.Whilst we are pleased with the results and our progress to d

38、ate in meeting the diversity requirements of the FCA Listing rules and Parker Review recommendations,we acknowledge there is still more to be done tocontinue to drive greater diversity.Our challenge for the year ahead will be how wecan enhance this at both Board and ExColevels.Finally,in September w

39、e announced that RogerStott will retire from the Board at the endof the year,after 16 years with AJBell,the final three of which were served as COO.Roger hasbeen an excellent thought leader and ambassador and has played a significant role inthe success of the business.I would like toextend my gratit

40、ude to Roger for his outstanding contribution to the Board and Company overmany years,and especially forhis support and guidance during my first year as Chair.Wewish him all the very best for the future.Further details on Board changes can be found in the Nomination Committee report on pages 84 to 8

41、7.Culture,purpose and stakeholder engagementThe Board plays a crucial role in shaping and embedding a strong and healthy culture by endorsing the core values and principles of theGroup.The Board receives updates and feedback on staff engagement and regularly reviews its culture dashboard to monitor

42、how we nurture our strong cohesive culture and ensure it remains a real strength as we continueto grow.One of my priorities as Chair is to ensure thatthe voice of our stakeholders is heard andrepresented in Board discussions.Wewelcomed the opportunity to engage with our staff and shareholders in per

43、son again this year,providing invaluable insight into the operation and culture of our business.Throughout this year our senior management team and Board have connected with our staff through various platforms including hosting in-person and virtual leadership sessions,participating in our annual ma

44、nagers day,attending talent networking events and regular employee surveys.Positive,meaningful staff engagement is keyto realising our strategic objectives and soas the nominated Employee Engagement Director I engaged with our Employee Voice Forum(EVF)members during the year to gather insights on a

45、range of topics that directly impact our companys growth anddirection.DividendIn line with our commitment to a progressive dividend,the Board is pleased to announce a final ordinary dividend of 8.25 pence per share,reflecting the financial performance of the business and strong capital position.The

46、final ordinary dividend will be paid,subject to shareholder approval,at our AGM on 29 January 2025,to shareholders on the register at the close of business on 10 January 2025.This brings the total ordinary dividend for thefinancial year to 12.50 pence per share,representing an increase of 16%on the

47、previous year.During the year the Board approved a new capital allocation framework.This reaffirmed our commitment to continue to invest in our organic growth plans and pay a progressive annual ordinary dividend.We have also committed to reviewing our capital position annually and will consider retu

48、rning any surplus funds to shareholders through a share buyback or special dividend,in accordance with our Capital Allocation Policy.The Board ispleased to announce recent approval of ourplan to return up to 30 million through a share buyback programme in the upcoming financial year.Consideration of

49、 our wider stakeholders in some of our key decisions in the year is outlined in our Section 172 statement on pages 26 and 27.Looking aheadAJBell is a financially strong business as evidenced by a profitable,well-capitalised andhighly cash-generative business model.The business has a track record of

50、delivering growth and has a clear strategy to ensure thatthis continues.Although we have seen improvements in the macroeconomic environment this year,geopolitical uncertainties continue.The recent Budgetannouncements,particularly aroundincreases in capital gains tax and bringing unspent pension asse

51、ts under the inheritance tax regime will also have an impacton some of our customers.Whilst these factors may present some challenges,itis clear that the fundamental growth drivers for the platform market remain firmly in place.The Board remains confident in the long-term prospects of the business.I

52、 have thoroughly enjoyed being part oftheteam and am hugely proud of our achievements in 2024.On behalf of the Board Iwould like to thank our management team and all of our people for their hard work and commitment this year and I look forward to another successful year ahead.Fiona ClutterbuckChair4

53、 December 2024Alongside fellow Non-Executive Directors(NED)and our CFO,Peter Birch,we discussed hybrid working,our culture,and the future role of artificial intelligence(AI)in supporting our operations.These have been high-quality debates and the forum has been invaluable forfostering discussions an

54、d ideas.Ithas been great to witness the high level of engagement and the initiatives that have emerged from these sessions.This year we participated in the Great Place to Work survey for the first time,having previously used Best Companies to measure employee engagement.We were delighted to receive

55、a score of 83%which places us amongst the best large companies in the country.We have maintained a high level of engagement with existing and potential shareholders this year and I have spent time with our shareholders to hear their views.It was important this year for us to engage with our larger s

56、hareholders on proposed changes to our Remuneration Policy.Our Chair of the Remuneration Committee,Margaret Hassall,led the consultation exercise which demonstrated there is strong support for theproposals that will be put to a vote at ourAGM in January 2025.Board changes and successionAs reported l

57、ast year,we were pleased towelcome Fiona Fry to the Board as anindependent Non-Executive Director.Following regulatory approval in March 2024,Fiona was appointed Chair of the Risk&Board prioritiesGrowth and efficiencyThe business has delivered another excellent set of results in 2024,withimpressive

58、growth in both our customers and AUA.I fully recognise the importance of sustaining strong growth while also managing our cost base amid an unpredictable macroeconomic and political landscape.The Boards focus in the upcoming year will be on ensuring ExCo strikes an appropriate balance between growth

59、 and efficiency,continuing to deliver our growth plans whilst also realising operational gearing.Consumer DutyGood customer outcomes are at the heart of everything we do,with good value products,simple communications and strong processes to support our customers.Our Consumer Duty implementation prog

60、ramme enabled usto strengthen our foundations and leverage new frameworks,tools and processes to further enhance the delivery of good consumer outcomes.This year we completed our first annual Consumer Duty assessment.Whilst we are confident that we are operating in line with the requirements of the

61、Duty,we recognise that embedding the Duty is a journey and there are opportunities to further enhance our business processes and continue to improve ourcustomer offering.The Boards focus will be on maintaining oversight to ensure the business is delivering good consumer outcomes for its customers wh

62、ich are consistent withthe Consumer Duty.Executive successionSuccession planning for ExCo and othersenior management has been a key priority for FY24.A comprehensive review took place during the year to evaluate our overall talent pool within the Company.It is gratifying to note the number of intern

63、al candidates identified,showcasing the effectiveness of personal development and career advancement at AJBell.We also continue to evaluate the market to identify external talent,ensuring a diverse senior management team inthefuture.The Board will maintain oversight andchallenge the progress ofour s

64、uccession planning at ExCo level,and we anticipate further enhancements in the upcoming year.6AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 20247Strategic reportGovernanceFinancial statementsOther informationChief Executive Officers reviewFocused on long-termgrowt

65、hOur easy-to-use,low-cost platform and market-leading customer service place us at the forefront of the UK investment platform market,ready to capitalise on the significant long-term growth opportunity.”Michael SummersgillChief Executive OfficerConsistently strong growthI am pleased to report on ano

66、ther excellent year in which we have delivered strong growth in customers and AUA.Our dual-channel approach to the platform market means we benefit from growth in both the advised and D2C sub-sectors of the market.This is set to continue,with approximately two-thirds of the estimated 3 trillion tota

67、l addressable market still held off-platform.We continue to increase our share of the growing UK investment platform market,both by attracting new customers entering the market for the first time and by attracting customers to AJBell from other platforms.Over the past year we have reduced fees forou

68、r customers,invested in our platform propositions and sustained our multi-year marketing campaign to increase brand awareness.Together with our market-leading customer service levels,these factors have helped to drive our organic growth this year and will further strengthen our ability to capitalise

69、 on the significant long-term growth opportunity that exists in the platform market.We have a track record of achieving consistently strong growth in our businesswhilst also increasing dividends toshareholders.Our growth this year has enabled us to deliver record financial results and further increa

70、se the level of surplus capital held.We are therefore pleased to recommend an increase in our ordinary ExCo.In addition,we recognise the importance of having a robust and diverse talent pipeline,and our commitment to developing internal talent is demonstrated byover 200 internal promotions this year

71、.Leadership team changesRoger Stott will be retiring and stepping downfrom his role as Chief Operating Officer(COO),as planned,on 31 December 2024.Throughout his 16-year tenure,Roger has served in several senior positions and has significantly contributed to our long-term success.Roger has been a pl

72、easure to work with and I would like to thank him for his contribution to the business and wish him all the best in his retirement.His responsibilities will be assumed by our CFO,Peter Birch,and Chief Technology Officer(CTO),Mo Tagari.Peter and Mo are excellent leaders who have the skills and experi

73、ence to ensure our focus on operational delivery remains as sharp asever.Following the year end,we announced theappointment of Ryan Hughes to our ExCo inthe role of Managing Director ofAJBell Investments,a role he had held on an interimbasis since October 2023.Ryan excelled in his interim role and I

74、 look forward to continuing our work together as we build on the successes of our fast-growing AJBell Investments business.Campaigning for retail investorsThere are a number of ongoing legislative andregulatory developments that will impact customers in our market.We continue to engage with the Gove

75、rnment and regulators on their behalf,campaigning for a range of measures which we believe will help to foster asupportive environment for long-term retail investors in the UK.dividend for the twentieth successive year,alongside the initiation of a share buyback programme to return up to 30 million

76、of surplus capital to shareholders.Another record performancePlatform customers increased by 14%to 542,000(FY23:476,000),whilst platform AUAincreased by 22%to 86.5 billion(FY23:70.9 billion),driven by strong net inflows of6.1 billion,up 45%versus the prior year(FY23:4.2 billion).This strong performa

77、nce was supported by the continued investment in our platform propositions,pricing and brand,alongside improved retail investor confidence as markets rebounded and inflationary pressures eased.The increase inasset values across global equity markets led to favourable market movements of 9.5billion.A

78、JBell Investments AUM increased by 45%to 6.8 billion(FY23:4.7 billion).Our range of simple,low-cost investment solutions continues to perform exceptionally well,including our managed portfolios,which remain highly attractive to financial advisers via both AJBell Investcentre and third-party adviser

79、platforms.The growth in customers and AUA and the improving macroeconomic environment enabled us to deliver a record financial performance.Revenue increased by 23%to 269.4 million(FY23:218.2 million),driven by higher revenue from interest income,custody fees and dealing fees.Profit before tax The ne

80、w Labour Governments first Budget proposed subjecting unused pensions on death to inheritance tax(IHT)from April 2027.Bringing pensions into IHT in the way proposed is arguably the most complex and costly way of raising tax from pensions on death.As the proposals currently stand,they will create del

81、ays for beneficiaries,will be costly to administer and will prove unworkable in many situations.We have proposed alternative approaches directly to the Government that would address these issues and we will contribute to industry-wide efforts to agree aworkable alternative.The tax treatment of pensi

82、on contributions and pension commencement lump sums arethe cornerstone of the UK pension system.In the period leading up to the Budget,speculation around the amendment or withdrawal of these key incentives was covered extensively by national media outlets.This caused a meaningful change in customer

83、behaviour,with contributions into pensions and withdrawals from them both increasing significantly.Whilst neither aspect of pension legislation was actually amended in the Budget,customers were clearly concerned.Pension saving is a long-term financial decision and it requires a system in which peopl

84、e have a high degree of confidence.Wewill continue to make representations tothe Treasury calling for a public commitment to stability in the pension taxsystem throughout this parliament.Ourcampaign for a Pensions Tax Lock hasbeen well received and we continue tocallfor Government to use this no-cos

85、t option to ensure people saving for retirement can have confidence inpensions.AJBell has campaigned over a number ofyears for simplification of the ISA system,making it easier for people to invest,reducing complexity in the savings and investment system and breaking down barriers between cash savin

86、g and investing.We are pleased proposals for a UK ISA will not be taken forward by this Government,with the introduction of another type of ISA risking undue product complexity with little benefit tocustomers.The Government has instead committed to simplifying the ISA system and making it easier for

87、 people to benefit from investing in ISAs and we look forward to working with policymakers and industry towards that objective.The ongoing Advice Guidance Boundary Review represents an opportunity for us to provide greater support to our customers and we are in favour of proposals to permit more tar

88、geted support,as outlined by the FCA in late2023.Feedback from the consultation on those proposals was published in November and we look forward to seeing them implemented in due course.OutlookThe structural growth drivers of the platform market remain strong,as more individuals recognise the import

89、ance of taking control oftheir financial future.We will continue to invest in our business with a focus on our technology and brand in order to capitalise on the significant growth opportunity the platform market presents.The benefits of operating our dual-channelplatform,underpinned by a single ope

90、rating model,will continue to drive operational gearing.Alongside this,we are increasingly focused on creating efficiencies through a framework of strong cost control and the automation of processes.Our diversified revenue model ensures wecan deliver strong financial performance across a wide range

91、of economic conditions.If the Bank of Englands base rate reduces in line with current market expectations,this hasthe potential to gradually increase the attractiveness of investing,providing a potential tailwind for customer acquisition and inflows.Pensions and ISAs are the core investment products

92、 in the UK and rely on continued belief from Government in the importance oflong-term investing for individuals financialfutures.As with any new government,changes in legislation can be expected.There is a risk that some changes could reduce the attractiveness of long-term investing in these key pro

93、ducts,or add complexity to the industry and increase costs.However,we remain confident that the new Government will continue to support the key,long-standing features of these products.Finally,I would like to express my thanks to all members of the AJBell team.Their ongoing commitment and dedication

94、 continues to be at the heart of our success and it is a pleasure to work with them.Michael SummersgillChief Executive Officer4 December 2024increased by 29%to 113.3 million(FY23:87.7 million),driven by the increases in revenue and higher profit margin resulting from our focus on delivering operatio

95、nal gearing.A highly engaged workforceA strong,purpose-led culture and high levelsof staff engagement are integral toourcontinued growth and success.Thisyearwe changed our employee engagement survey to Great Place to Work,awell-established employee engagement tool with accreditations recognised glob

96、ally,as we wanted to continue to challenge ourselves and gain a different perspective onour workplace culture.We are therefore pleased to report strong results,being certified as a Great Place to Work with a totalscore of 83%,well in excess of the 65%accreditation threshold,placing us amongst the be

97、st large companies in the country.We continue to invest in our pay and benefitspackage for employees.For FY24,weincreased base pay by an average of 5%and introduced uplifts to employer pension contributions.Employee share ownership remains fundamental to our business and wecontinue to operate our an

98、nual free share scheme award,which has resulted in 79%of our workforce owning shares in the company.We believe that having a diverse leadership team is important to ensure that we bring awealth of perspectives to the table,and I ampleased with the strong levels of both demographic and cognitive dive

99、rsity in our Our strategy to help people investWe invest in our propositions with afocus on our three strategic drivers;ease of use,trust and low-cost.For progress against each strategic driver,see pages 10 to 15.Ease of useTrustLow-cost8AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual

100、Report and Accounts 20249Strategic reportGovernanceFinancial statementsOther informationChief Executive Officers reviewMaking investing easy.We make it easy for customers to invest through our full-service and simplified propositions,supplemented by our in-house investment solutions.Our range of sol

101、utions provides our customers with a straightforward investment journey,supported by additional tools to make investing easier.We are committed to continually investing in our propositions with a focus on ease of use to meet the evolving needs of customers and advisers.Adviser efficiencyOn our full-

102、service advised proposition,AJBellInvestcentre,we have improved efficiency and ease of use for advisers,helping them to remain focused on delivering excellent service to the customer.We have developed a significantly improved interface,mapped to the advice process,to streamline the onboarding of new

103、 clients.Fund-specific illustrations and pre-sale costs&charges disclosures are produced instantly as part of the process,with all progress visible to the adviser on the onboarding dashboard.We have also introduced a new feature whichenables regular investments directly intomodel portfolios.This all

104、ows advisers to instruct the regular investments into a model portfolio rather than individual asset lines,again improving efficiency.The development of AJBell Touch,our simplified advised proposition,is ongoing.Wecompleted beta testing during the year,receiving some excellent feedback from advisers

105、.The fully digital solution will expand our offering in the advised market.Through itsstreamlined,intuitive user interfaces,AJBell Touch is able to deliver greater efficiencies for advisers,enabling them to engage with a wider range of clients.Improving and simplifying the D2C customer experienceA p

106、roportion of our addressable market sitsin legacy pension products.The vast majority of people have multiple employers during their career,and subsequently accumulate several different pension pots which can result in higher charges,whilst also being more difficult to manage.Our customers have been

107、consolidating such pensions with us for many years,but as partof our focus on ease of use we have launched our Ready-made pension service,helping customers to consolidate their existing pensions with minimal effort.The combination of a pension-finding service,anew pension product and a multi-asset i

108、nvestment solution with an all-in cost of just0.45%represents excellent value forcustomers.Customer experience is a key component of ease of use,and as such we are undertaking a project to roll out a new,fresh design for our D2C website in early 2025.This will be followed by the redesign of our mobi

109、le app.These developments will focus on improving navigation and enhancing content delivery for customers,all centred on ease of use.Long-term cash savings represent a significant part of the addressable market forplatforms.There are millions of people in the UK who hold high levels of cash savings

110、for sustained periods of time,missing out onthe superior returns that can be achieved through risk-based investing.Many of these consumers are deterred from investing due to its perceived complexity and their own lack of confidence.AJBell Dodl provides anideal platform to address this market opportu

111、nity,and to increase its attractiveness to this cohort of customers,we introduced a highly-competitive interest rate for cash held in an ISA or Lifetime ISA,with the current rate of 4.84%being higher than the UK base rate of 4.75%.Customers are able to access educational content on the platform to h

112、elp build their confidence toinvest via AJBell Dodls streamlined investment range.through our range of platform propositionsOur full-service and simplified platform propositions,operating in the advised and D2C market segments,ensure we are well placed to support a wide range of investors with diffe

113、rent levels of investment experience and needs.Our two established full-service products,AJBell Investcentre and AJBell,offer a wide investment range through our open-architecture platform.AJBell Dodl,our simplified D2C proposition,broadens our reach to a new generation of investors.It is aimed at l

114、ess-experienced investors,offering a simplified investment range and is one of the best-value platforms in the market.AJBell Touch,our simplified advised proposition,will enable advisers to connect with their clients at the touch of a button,catering for their needs through a fully digital service m

115、odel.What this means for our customersOn saving for her first house purchase,Becky said:I chose AJBell in the first place because I researched the easiest to use in terms of first-time investors.I think it has met those expectations for me.I find the app really easy to use it gives me all the tools

116、to be able to make a decision on my funds.I like the fact I feel empowered with my money.”BeckyAJBell customer Ease of useWe make it easy for customers to invest10AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 202411Strategic reportGovernanceFinancial statementsOth

117、er informationChief Executive Officers reviewMaking investing easy.TrustOur award-winning platform propositions and market-leading customer service levels have enabled us to build a platform which ishighly trusted by both customers and financial advisers,evidenced by our 94.2%customer retention rate

118、.This trustedrelationship is key to retaining existing customers.Trust and brand awareness are also key drivers of a new customers decision when choosing an investment platform.Therefore,alongside our highly trusted platform,we are continuing to focus on enhancing our brandawareness.A scalable platf

119、orm with market-leading customer service Our scalable platform offers a reliable digital solution.During the year we processed in excess of ten million trades and transactions,highlighting our capacity to manage growing demand and ensuring our customers can invest whenever they choose.While our digi

120、tal services are at the core ofour offering,we recognise there are moments in the investment journey when customers and advisers want to speak to usdirectly.Our knowledgeable Customer Services Team provide help and reassurance by ensuring queries are resolved swiftly and effectively.During the year

121、we handled over 450,000 calls,with 97%of calls answered within 20 seconds,highlighting our commitment to providing exceptional service.The strength of our service is furtherdemonstrated by our market-leading Trustpilot rating of 4.8-stars and being the only platform to be recognised as a Which?Recom

122、mended investment platform provider for six years in a row.We believe this is paramount to retaining the trust of our customers and their advisers,and to ensure we maintain our high customer retention and referral rates.We earn the trust of our customersIncreased brand awarenessWe continued our mult

123、i-year strategy to enhance brand awareness through our TV advertising campaign and title partnership with the AJBell Great Run Series.Our efforts have yielded positive results,with prompted brand awareness reaching an all-time high,reinforcing our position as a trusted platform in the market.We rema

124、in committed to this strategy,and recently relaunched our TV and radio advertising campaigns with refined messaging to build on our improved brandawareness.through our secure and scalable platform propositionsWe administer over 90 billion of our customers investments.During the year,we settled milli

125、ons of trades and hundreds of thousands of pension payments,demonstrating the robustness of our technology model and its ability to allow our customers to invest when they choose.We continually invest in our platform to ensure a reliable service for our customers.We conducted extensive disaster reco

126、very testing during the year,running the entire business for a sustained period on the cloud,and continued to invest in advanced cyber defence technologies to protect our customers and platform,evolving in response to the changing threat landscape.These investments ensure that our customers can inte

127、ract with our platform confidently.Further details on how we ensure security across our platform can be found on page 33.We operate a hybrid technology model,leveraging a blend of in-house developed user interfaces alongside hosting core back-office systems supplied by industry-leading software prov

128、iders.This model enables us to provide a robust and stable platform with adaptable,user-friendly interfaces,which is critical to delivering positive consumer outcomes.”Mo Tagari Chief Technology Officer12AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 202413Strategi

129、c reportGovernanceFinancial statementsOther informationChief Executive Officers reviewMaking investing easy.Our scale,combined with an efficient dual-channel,single operating model,enables us to keep costs low for our customers.Our philosophy has always been to share the benefits of operating at sca

130、le with our customers so that we can provide one of the most competitively priced platforms in the market.Reducing customer chargesDuring the year we have reduced chargesonboth our advised and D2C platform propositions.For our advised customers,we reduced custody charges for assets held on the platf

131、orm,as well as removing various transactional charges.For our D2C customers,we halved our dealing charges on shares,ETFs,investment trusts and bonds to 5.00 per trade,while charges for frequent traders were reduced from 4.95 to 3.50.Competitive interest ratesWe pay competitive interest rates to cust

132、omers on the instant access cash balances held on our platform.Customers often hold cash in their accounts temporarily while they wait for investment opportunities.This can differ for pensions,particularly wherecustomers are approaching or are in retirement,as they will often hold larger cash balanc

133、es to fund short-to-medium-term income withdrawals.We have therefore introduced new higher rates of interest on cash held in pensions in drawdown.These price reductions and increased interestrates deliver annualised savings to our customers of over 20 million.We believe they will ensure that our pri

134、cing levels will remain highly competitive and sustainable over the medium term.through our in-house investment solutions Our multi-award winning investments business is delivering onits commitment to offer a choice of simple,transparent investment solutions at a low cost.Our multi-asset funds offer

135、 a simplified pricing structure,with a single ongoing charges figure(OCF)for our six growth funds at 0.31%per annum,down by nearly half from 0.50%when they were first launched.Following the year end,we also reduced the OCF on our two income funds from 0.65%to 0.50%,further demonstrating our commitme

136、nt to delivering excellent value.For our advised customers,we offer market-leading value on our managed portfolio service(MPS)with a charge of just 0.15%.We continue to deliver strong investment performance,withallour multi-asset growth funds outperforming their Investment Association sector average

137、 over both a three-andfive-year period.At AJBell Investments,our focus isondelivering strong investment performance via low-cost investment solutions.We are seeing particularly strong demand from financial adviser firms,driving our total assets under management to a record 6.8 billion.Our philosophy

138、 has always been to use our economies of scale to keep charges low,whilst ensuring we achieve competitive returns,providingexcellent value for moneyforourcustomers.”Ryan HughesManaging Director,AJBellInvestmentsLow-costWe offer great value toourcustomers14AJ Bell plc Annual Report and Accounts 2024A

139、J Bell plc Annual Report and Accounts 202415Strategic reportGovernanceFinancial statementsOther informationUK platform marketbn20182020202220241,073860729634+9%CAGRAJ Bell platform AUA 86.5bnMarket overviewA significant growth opportunityThe market opportunityThe UK investment platform market forms

140、part of the broader UK savings and investment industry Across the industry,trillions of pounds of assets are held by individuals in products such as pensions,ISAs,general investment accounts,bonds and cash savings with a significant proportion held off-platform in legacy products offered by banks,bu

141、ilding societies,investment managers,pension schemes,stockbrokers and life insurance companies.Investment platforms are increasingly attracting assets previously held in these legacy products,driven by the improved customer outcomes they can deliver such as the ability to manage investments easily i

142、n one place,increased flexibility and investment choice,and often lower charges.As a result,there is an established trend of non-platform assets gradually moving intothe platform market.This trend is expected to continue.A fast-growing UK platform marketThe total addressable market for platforms is

143、currently estimated to be worth approximately3trillion.With just over one-third of this currently held on platforms,thereremains asignificant long-term growth opportunity for investment platforms.The platform market has grown from 0.6 trillion in 2018 to close to1.1trillion,witharound60%held on advi

144、ser platforms and the remainder held on D2Cplatforms.Theadvisedand D2C segments ofthe market have both grown atsimilarrates,drivenbylong-term structural growth drivers and individuals taking greater personal responsibility for their financial futures.AJBell is one of only a fewplatformsoperating at

145、scale in both the advised and D2C marketsegments.Total addressable marketOur dual-channel business model ensures that we are positioned to capture assets from the whole addressable market,irrespective of whether they are self-managed orusingthe support of a financial adviser.This maximises ouropport

146、unity to capture an increasing share of the assets flowing into the platform market,driving further market share gains over the long term.See our market overview for more information on page 18.3tnDemographicsThe UK state pension age will reach 67 by2028 There are over 31million members of private-s

147、ector DC pensions in the UK.The UKs ageing population and increased life expectancy have led to an increase in state retirement age,causing people wishing to retire earlier to be increasingly reliant on their private pensions and savings.This is driving people to be more actively engaged with their

148、savings and investments from an earlier age.Government policyThe workplace pension participation rate in the UK has increased from 47%to 80%since 2012There is an increasing requirement for individuals to take greater personal responsibility for their retirement provision,evidenced bythe UK Governmen

149、ts policies inrelation to pension freedoms,auto-enrolment and tax-efficient savings and investments.TechnologyStructural shift from non-platform providers to platformsTechnological innovation has made the investment platform market more accessible to a broader range of retail investors who are incre

150、asingly looking for simple,intuitive products to help them achieve their long-term financialgoals.Long-term structural growth driversThe long-term drivers that are shaping our industry and driving new growth opportunities.What this means for AJ BellOur dual-channel model maximises our growth opportu

151、nity1.9tn1.1tn Currently held D2C AdvisedAJ Bells market share%3.74.45.05.45.86.16.87.57.87.98.18.58.89.02018201920202021202220232024Source:D2C market Boring Money data as at 30 September,Advised market LangCat data as at 30 September.AJ Bell plc Annual Report and Accounts 20241716AJ Bell plc Annual

152、 Report and Accounts 2024Strategic reportGovernanceFinancial statementsOther informationMarket overviewKey trends in the investment platform marketWe respond to market trends that have the potential to impact our business,ensuring we remain well-positioned to continue capturinggrowth opportunities.L

153、ink to strategyTrustLow-costEase of useHow we are responding Our low-cost,easy-to-use platform propositions serve the needs ofboth advised and D2C investors.This dual-channel approach,whichoffers excellent value to customers,positions us well to continue delivering net AUA inflows across the platfor

154、m.This was demonstrated again in FY24 when we delivered over 6 billion of net inflows,with both channels making strong contributions,and we expect to see similar resilience in net flows in FY24 and beyond.Whilst there is somepressure on new contributions,consolidation of existing wealth continues to

155、 be a key driver of inflows to our platform.This has been asignificant contributor to new business for many years as customers and advisers consolidate pensions and other investments held across multiple providers into one place.This activity is expected to continue driving strong inflows and is not

156、 dependent on new contributions,so is less impacted by the short-term market uncertainty.Our open-architecture platform provides investment options across a wide range of instruments and asset classes,including fixed income instruments such as money market funds and gilts.Our Cash savings hub also p

157、rovides another option for our D2C customers who want to earn highly-competitive interest rates on their cash from a range of partner banks.During the year we also launched a market-leading interest rate on AJBell Dodl investment ISAs and LISAs,as part of a new drive to help cash savers earn interes

158、t whilst learning about investing.The availability of these different options on our platform has enabled us to meet the changing investment needs of our customers,and helped to attract and retain assets that might otherwise have been saved or invested in cash products outside the platform market.Ou

159、r diversified revenue model hasbenefited from higher interest rates,driving improved revenue margins.We are committed to sharing efficiency gains with our customers,people and shareholders.How we are responding We continually monitor the competitive landscape to ensure we keep up with the pace of ch

160、ange and that our propositions remain at the forefront of the market.We are a trusted provider offering an easy-to-use platform,which offers broad functionality and award-winning service at a highly competitive price.This combination has driven strong growth in customers and AUAover many years,and o

161、ur scale ensures we have a profitable and sustainable business model.The challenging market backdrop has made it more difficult for newer entrants to achieve the scale necessary to achieve profitability,and business models are under increasing pressure,evidenced by reduced competitor recruitment and

162、 marketing activity.By contrast,we have continued to perform strongly and increased ourmarket share again in the year.From a position of financial strength,weare investing in our brand,our propositions and our people to support our long-term growth ambitions.Our combination of full-service and simpl

163、ified propositions,operating in both the advised and D2C markets,gives us a strong competitive position relative to both incumbent platforms and new entrants.This will help us to deliver further growth in customers and AUA in FY25 and beyond.Alongside the investment in our propositions,we have incre

164、ased our brand investment to improve the overall awareness of the AJBell brand with potential customers.Our efforts have yielded positive results,with both brand familiarity and prompted brand awareness reaching an all-time high.We are committed to continuing our investment in brand in FY25.These on

165、going investments strengthen our competitive position and support our ambition to continue capturing market share.How we are responding We continue to engage proactively with the Government and regulators,campaigning on a range of measures which we believe will help promote asupportive environment f

166、or long-term retail investors.Pensions are the primary retirement savings vehicle in the UK and customers are sensitive to changes in their tax treatment.We were pleased to see the most fundamental incentives behind the pension tax system income tax relief on contributions and tax-free cash entitlem

167、ents on withdrawal remain unchanged.Speculation around the future of these incentives prompted an increase in both contributions and tax-free cash withdrawals in the months leading up to the Budget.We will continue to make representations to the Treasury calling for a public commitment to stability

168、in the pension tax system throughout this parliament.Changes to inheritance tax may influence the financial planning decisionsof some wealthier customers,for whom pensions may no longer represent such an attractive estate planning vehicle.Financial advisers will play a crucial role in supporting tho

169、se individuals to adapt their portfolios.Likewise,whilst the increases to capital gains tax will present a tax planning challenge for some customers,we are well placed to support them through tax-advantaged SIPPs and ISAs.We continue to call for a simplification of the ISA system,making it easier fo

170、r people to invest,reducing complexity in the savings and investment system and breaking down barriers between cash saving and investing.Welook forward to working with policymakers towards this objective.We are in favour of proposals to permit more targeted support to D2Ccustomers,particularly those

171、 who are first-time or inexperienced investors.Our simplified proposition,AJBell Dodl,is well-placed to support these customers.Higher interest rate environment In recent years elevated inflation has led to higher interest rates and rising costs for many households.This has put pressure on individua

172、ls,presenting a headwind for inflows into the platform market as people prioritise day-to-day expenditure over their longer-term investments.Higher interest rates have also impacted the platform market in different ways:Higher mortgage re-fix rates have affected peoples ability tomake new contributi

173、ons to their long-term investments.Higher returns on cash present a headwind for investmentplatforms.Changing competitor landscapeThe platform market is an attractive market supported by long-term structural growth drivers.Leading platforms can attract and retain customers with high lifetime values,

174、driving significant recurring revenues.Serving these customers via a scalable platform can deliver attractive profit margins,once sufficient scale is reached.These characteristics have attracted significant capital into themarket,driving a continual evolution in the competitive landscape.In recent y

175、ears,several new competitors have emerged,particularly in the D2C market,all addressing themarket differently with innovative new propositions.Intheadvised market we are seeing increased levels of adviserconsolidation.This has resulted in differentiated approaches acrossthemarket to pricing models,s

176、ervice offering,functionality,customer experience,and the level ofbrandand marketing activity.Evolving legislative and regulatory landscapeThere are a number of ongoing legislative and regulatory developments that will impact customers in our market.The Labour Governments first Budget included propo

177、sals to introduce inheritance tax on unused pension assets and capital gains tax rates were increased.The Government has also committed to simplifying the ISA system and making it easier for people to benefit from investing in ISAs.There is an ongoing review into the Advice Guidance Boundary.This re

178、presents an opportunity for the D2C platformto provide more targeted support for retail investors.Link to strategy Link to strategy Link to strategy 18AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 202419Strategic reportGovernanceFinancial statementsOther informati

179、onBusiness modelDelivering sustainable value creationResources and inputsWhat we doHow we do itDelivering value for.Brand and reputationWith over 29 years of experience,wehave built a trusted brand through our high-quality service and platform propositions.We raise brand awareness through a combinat

180、ion of sponsorship,PR,social media and referrals.A well-invested technology infrastructure We operate a hybrid technology model whereby our platform user interfaces are developed in-house,whilst our core back-office systems are outsourced to industry expert software providers.This model provides a n

181、umber of benefits,including the ability to build adaptable,easy-to-use interfaces and reduces the cost of regulatory compliance.People and culture Our success is built on delivering a high-quality service through the skills and passion of our people.Financial strengthWe are a materially debt-free bu

182、siness which holds sufficient funds to more than meet our regulatory capital requirements and support ongoing investment in the business.Our propositionsOur dual-channel model enables us to maximise the growth opportunity by increasing market share in both the advised and D2C platform markets.Whatev

183、er the condition of the day,people need to invest for the long term and that means our market is set to grow for many years to come.Our strategyThere are three strategic drivers that harness whatwe deliver to customers and advisers and howwedoit.AdvisedDirect to customerEstablished platform proposit

184、ions offering a wide range of investment choice and functionalityDigital only platform propositions offering an easy-to-use,streamlined investment serviceFull serviceSimplifiedInvestment solutionsA range of in-house funds and MPS solutions which support our offerings inboth the advised and D2C marke

185、t segmentsEase of useTrustLow-costOur capital allocation prioritiesAs we grow and scale effectively,we will continue to invest in strategic initiatives to deliver long-term growth.We aim to pay shareholders a progressive ordinary dividend and will consider both theappropriateness of,and mechanism fo

186、r,returning surplus capital to shareholders on anannual basis.Further detail on our capital allocation framework is included on page 57.Driven by our revenue modelOur revenue model includes a mix of fixed fees,ad valorem and transactional charges which provide a balance of inflation protection and r

187、esilience in the face of economic and capital market fluctuations.A significant portion of our revenues are recurring,in the form of charges levied on an annual or other recurring basis.Our peopleA positive and inclusive workplace with a strong,purpose-led culture.A company that is committed to inve

188、sting in the development of its staff to help them fulfil their potential.A competitive pay and benefits package that fairly rewards staff.Staff engagementStaff promotions203Our shareholdersSustained organic growth driven by our successful business model.Strongfinancialperformancewhich funds further

189、 investment in the business,whilst growing shareholder returns.Total ordinary dividend per share12.5pAnnounced share buyback of up to30mOur customers and their advisersAn easy-to-use investment platform that they can trust.It provides helpfulcontent and knowledgeable customer support that enables th

190、em tomanage their investments at a low cost,whether directly or with the helpof a financial adviser.Trustpilot scoreCustomer retention rate94.2%See p16See p28See p24See p58See p70Market trends and opportunitiesStakeholdersResponsible businessRisk managementGovernanceUnderpinned by factors that deter

191、mine our long-term growth:Organic growth of our platform AUA bn 2020202120222023202449.765.364.1 70.9 86.5AJ Bell plc Annual Report and Accounts 20242120AJ Bell plc Annual Report and Accounts 2024Strategic reportGovernanceFinancial statementsOther informationLink to strategyWe invest in our proposit

192、ions with a focus on ourthreestrategic drivers:ease of use,trust and low-cost.By focusing on continually providing anexcellent standard of customer service,straightforward investmentsolutions,and competitively-priced platformpropositions,ourcore drivers enable us toattract and retain customers,incre

193、ase AUA,and enhance customer loyalty,all of which will drive stronglong-term financial returns.These are the primary KPIs which we use tomeasure strategic progress.Our KPIs are reviewed annually in relation to the strategic objectives of the Company through our businessplanning process.TrustLow-cost

194、Ease of useKey performance indicatorsHow we performedWe use selected key performance indicators(KPIs)to monitor progress against our strategy.38329544149155720212020202220232024 Number of retail customers000s+13%Movement2023 to 2024Why it is importantThe number of retail customers is the number that

195、 have atleastone funded account with an AJBell product at 30September 2024.The number of retail customers can be used as a measurement of the success of our propositions,customer service and marketing.145.8126.7163.8218.2269.420212020202220232024 Revenuem+23%Movement2023 to 2024Why it is importantOu

196、r revenue is the total income generated by the Groups activities,comprising recurring ad valorem,recurring fixed and transactional revenue.Revenue provides a measurement of the financial growth of the Group.10.679.4711.3516.5320.3420212020202220232024 Diluted EPSpence+23%Movement2023 to 2024Why this

197、 is importantDiluted EPS represents profit after tax divided by the weighted average number of shares and unexercised options in issue during the period.EPS provides a measurement of profit per share to determine the value created for shareholders.72.856.569.276.192.220212020202220232024 AUA1bn+21%M

198、ovement2023 to 2024Why it is importantAUA is the value of assets for which AJBell provides either anadministrative,custodial or transactional service.AUA is a measurement of the growth of the business and is theprimary driver of ad valorem revenue,which is the largest component of Group revenue.95.0

199、95.595.595.294.220212020202220232024 Customer retention rateppts(1.0)pptsMovement2023 to 2024Why it is importantThe customer retention rate is the average number of funded platform customers during the financial year that remain funded at 30 September 2024.Customer retention is a measurement of cust

200、omer satisfaction.37.838.435.640.242.020212020202220232024 PBT margin%+1.8 pptsMovement2023 to 2024Why it is importantPBT margin is calculated as PBT divided by total revenue.PBT margin is a measurement of the efficiency of the Groups business model in converting revenue into profits.22.2 23.9 22.6

201、29.8 31.6 20212020202220232024 Revenue per AUA1bps+1.8 bpsMovement2023 to 2024Why it is importantRevenue per AUA is the total revenue generated during the year expressed as a percentage of the average AUA in the year.Revenue per AUA provides a simple measurement to facilitate comparison of our charg

202、es with our competitors.55.148.658.487.7113.320212020202220232024 PBTm+29%Movement2023 to 2024Why it is importantPBT is the profit generated by the Group before corporation tax is paid.PBT is a measurement of the financial performance of the Group.Profits can be used to strengthen the capital base,i

203、nvest within the business or be returned to investors.832024 Great Place to Work survey score%Why it is importantThe Great Place to Work survey provides employers with honest,in-depth feedback from employees covering a range of matters such as leadership,wellbeing,pay and more.The index survey score

204、 reflects an overall score across all focus areas,with an index score of over 65%required to receive certification.This is our first year using the Great Place to Work Survey and as such no prior period comparators are available.Under the previous Best Companies survey,we achieved the maximum 3-star

205、 rating for six consecutive years.Key Included directly as Remuneration metric Included indirectly in Remuneration metrics Financial KPI Non-financial KPI1.These KPIs are alternative performance measures(APMs).APMs are not defined byInternational Financial Reporting Standards(IFRS)and should be cons

206、idered together with the Groups IFRS measurements of performance.We believe APMs assist in providing greater insight into the underlying performance of the Group and enhance comparability of information between reporting periods.For definitions,see page 174.AJ Bell plc Annual Report and Accounts 202

207、42322AJ Bell plc Annual Report and Accounts 2024Strategic reportGovernanceFinancial statementsOther informationStakeholder engagementBuilding positive engagement with our stakeholdersOur customers and their advisersOur shareholdersOur peopleOther stakeholdersOur customers include retail investors,fi

208、nancial advisers and wealth management companies.Our success is dependent on our ability to understand our customers needs and develop appropriate products to meet those needs.Material interestsAn investment platform for our customers and advisers that:is secure,reliable,and easy-to-use;provides a h

209、igh-quality customer service at low cost;and helps them meet their long-term financial objectives.How we engagedCustomer services and websitesWe have ongoing customer and adviser engagement through calls,meetings,organised events,newsletters,ourwebsite and other written communications.We continually

210、 invest in our propositions with a focus on ease of use,informed by customer and adviser feedback.Ourproposition websites provide our customers and their advisers with a range of tools to assist them in managing theirinvestments.SurveysCustomer and adviser surveys are conducted on an annual basis wi

211、th the results reviewed at Board level.Specific user groups perform beta-testing to provide further insight and feedback.This engagement and feedback informs the way in which we can best serve our customers and their advisers.Outcomes Hosted a range of events for advisers including our flagship Inve

212、stival conference and a wide range of seminars.Excellent customer retention rate of 94.2%and Trustpilot score of 4.8-stars.Completed beta testing for AJBell Touch,our simplified mobile-led proposition for advisers.Developed our Advised and D2C propositions with a focus on ease of use,including a new

213、 Investcentre client onboarding journey and our Ready-made pension for D2C customers.Reduced charges on both our advised and D2C platform propositions.Our shareholders include both institutional andretail investors,including AJ Bell customers and employees.Delivering on our long-term strategic objec

214、tives is dependent on our shareholders support.Material interestsOur shareholders want to invest in a business that:delivers on its investment case;and provides consistent profitability,growth,and long-term sustainable returns.How we engagedOngoing investor relations programmeThrough our investor re

215、lations programme,which includes regular trading updates,management roadshows,investor and analyst meetings,attendance at investor conferences,and our AGM which all members of the Board attend,we ensure that shareholder views are brought into the boardroom and considered in our decision making.The C

216、EO and CFO,supported by the Investor Relations Director,met with analysts and investors throughout the year.Our Remuneration Committee Chair,Margaret Hassall,also consulted with shareholders on proposed changes to Directors remuneration and Non-Executive Director fees.Corporate broker updatesOur cor

217、porate brokers and sell-side analysts also provide us with valuable feedback and market insight.Our corporate brokers deliver updates on market dynamics and representatives are regularly invited to attend Board meetings.Outcomes Regular financial reporting,with interim and full year results publishe

218、d,along with quarterly trading updates and market announcements.16%increase in our total ordinary dividend.Approval of share buyback programme to return up to 30 million of surplus capital to shareholders.All resolutions passed at the AGM with a majority of more than96%.Our people are at the heart o

219、f our success.Oursuccess is built on delivering a high-quality service through the skills and passion of our people who bring our values to life across thebusiness.Material interestsA working environment for our people that:facilitates their engagement at all levels;provides them with development op

220、portunities;promotes their physical and mental wellbeing;promotes diversity and inclusion;rewards them appropriately;and encourages flexible working practices.How we engagedSurveys,staff communications and feedbackWe engage regularly with our staff through the appraisal process,our intranet site,Com

221、pany presentations,leadership lunches and our wellbeing programme.Our CEO hosted staff question and answer sessions in our offices and provides regular email updates on the business performance.We changed our annual employee engagement survey to Great Places to Work this year,to challenge ourselves

222、to gain a different perspective on our workplace culture.Fiona Clutterbuck is our Non-Executive Director responsible for employee engagement.The Employee Voice Forum,which she chairs,meets to discuss a variety of themes raised by staff,with recent topics including staff retention and hybrid working.

223、Company share schemesWe continue to encourage employee share ownership through our BAYE scheme and free share scheme for all employees,to engage our workforce in the performance of the Company and to align employee and shareholder interests.Outcomes Achieved accreditation as a Great Place to Work.Im

224、provements to our staff pay and benefits package.Continued to offer BAYE and free share scheme to all staff.An intake of 26 new apprentices into the AJBell Academy intheyear.Our staff achieved over 200 internal promotions and completed over 100 courses and qualifications in the year.Other stakeholde

225、rs represent the local communities in which we operate,as well as the wider environment,our suppliers and our regulators.As a socially responsible business,we believe we have a responsibility to our local communities,wider society and our suppliers.We operate in a highly-regulated environment and en

226、gage with our regulators constructively.Material interestsOur other stakeholders want us to:act as a responsible corporate citizen in all respects;and conduct our business with integrity.How we engagedEngaging with our suppliersWe maintain and develop our business relationships.In addition to ourdue

227、 diligence processes,we ensure management has regular feedback sessions with representatives from key suppliers.We ensure our payment terms are fair and in compliance with payment practices.Engaging with our regulatorsLed by our Compliance Team,we regularly engage with the FCA and DWP on consultatio

228、n papers and industry issues.We actively seek to lobby via public consultation and with policymakers where we perceive unfairness or unnecessary complexity.Engaging with our communities and wider societyWe continue to support the AJ Bell Futures Foundation,which develops long-term partnerships in ou

229、r local communities.We have committed to donate 0.5%of our profits to the Foundation each year.Alongside our financial donations,we have also seen our staff participating in volunteering activities with our principal partner charities:Smart Works,IntoUniversity,Stop.Breathe.Think and the British Hea

230、rt Foundation.Outcomes 30-day payment terms.438,500 of charitable donations.328 hours of staff volunteering.Donation of 263 laptops and desktops to local primary schools and community organisations.Completed our first annual Consumer Duty assessment which confirmed our products provide fair value to

231、 customers.We believe effective stakeholder engagement is a key element in driving a successful,sustainable business,built for the long term.We proactively engage with and listen to ourstakeholders to understand what is important to them.By understanding our stakeholders,we can factor into boardroom

232、 discussions the potential impact of our decisions on each stakeholder group and consider their needs and interests.The information below sets out who our key stakeholders are,the key reasons weengage with them,the areas they have a material interest in and asummary of how we engaged in the year whe

233、n considering what ismost likely to promote the success of the Company.24AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 202425Strategic reportGovernanceFinancial statementsOther informationSection 172 statementFor the benefit ofourstakeholdersSection 172 of the Com

234、panies Act 2006(s172)requires Directors to act in the way they consider,in good faith,would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and,in doing so,have regard(amongst other matters)to:a)the likely consequences of any decisions in the longt

235、erm;b)the interests of the Companys employees;c)the need to foster the Companys business relationships with suppliers,customers and others;d)the impact of the Companys operations on the community and environment;e)the desirability of the Company maintaining a reputation for high standards of busines

236、s conduct;and f)the need to act fairly between shareholders and theCompany.We set out some examples of how the Board has hadregard to the duties under s172 when considering specific matters,and how it has considered the interests of our key stakeholders in those decisions.Further detail on how the B

237、oard operates,including the matters it discussed and debated in the year,having regard to its s172 duties,are contained within the Corporate Governance report on pages 74 to 83.The Board seeks to understand and carefully consider each of our key stakeholders interests,priorities and views.The Board

238、recognises that each decision will have adifferent impact and relevance to each key stakeholder,and so having a good understanding of their priorities is important.Where stakeholder priorities conflict,the members of the Board exercise independent judgement when balancing those competing interests i

239、n order to determine what it considers to be the most likely outcome to promote the long-term sustainable success of the Company.Although the Board engages directly with some stakeholders,engagement also takes place at different levels within the business.The output from engagement below Board level

240、 is reported back to the Board and/or Board Committees and helps to inform both Board and other business-level decisions.Further information about how we engage with ourstakeholders and their needs can be found onpages24 and 25.Principal decisions:1.Capital allocation frameworkDuring the year,the Bo

241、ard approved a new capital allocation framework.In approving the framework,the Board considered the need to establish a more holistic approach to capital allocation than in our previously stated dividend policy and the benefits of greater flexibility to manage the Groups capital through investment i

242、n the business and the return of surplus capital to shareholders.The framework strikes a balance between capital returns and sustainable long-term value creation,enabling targeted organic investment in the business to support our customers and drive long-term business growth,whilst reinforcing our c

243、ommitment to a progressive annual ordinary dividend and increasing the flexibility in which surplus capital is returned to shareholders.The Board believes this balance will enable us to maximise value for shareholders and ensure that we remain attractive to both growth and income investors.This will

244、 also impact the majority of our employees with 79%of the workforce having share interests in the Group.The framework also sets out the Boards commitment to continue to maintain a robust level of capital and liquidity,asrequired by our regulator,and retains our long-standing commitment to supporting

245、 our local communities with 0.5%of PBT to be donated annually to the AJ Bell Futures Foundation.In accordance with the new framework,the Board is pleased to recommend a final ordinary dividend of 8.25 pence per share and the approval of up to 30 million of share buybacks to be completed during FY25.

246、Section 172 duties;a),b),c),d),e),f)2.Consumer Duty annual assessmentIn July 2023,AJBell successfully implemented the FCAs Consumer Duty requirements and the Board considered this to be in alignment with the overall strategy and purpose of the business on the basis that the delivery of good customer

247、 outcomes is fundamental totheCompanys purpose,business model,strategy and guidingprinciples.Whilst the Board was confident when it approved the initial implementation in 2023 that the business was structured to deliver good customer outcomes,the Board was keen to review the FCAs feedback post-imple

248、mentation to consider if further enhancements could be made.In addition to considering post-implementation comments from the FCA,the Board is also responsible for approving an annual Customer Duty report,which is a confirmation of the Groups compliance with its Consumer Duty obligations and an assur

249、ance that its business strategy aligns with the Consumer Duty principles.Since implementing the Consumer Duty programme in July 2023,the focus has been on moving the delivery of the Consumer Duty into business-as-usual(BAU)processes.In order to facilitate the move to BAU processes,the Board agreed t

250、o refresh the Product Governance Framework,which applies to all stages of a product lifecycle and aims to provide a transparent,consistent and auditable framework that demonstrates how we ensure regulatory requirements are met and deliver good customer outcomes.Inparticular,the refresh involved revi

251、sing when key documents prepared in accordance with the framework,such as the Fair Value Assessments and Product Proposition Documents,would be submitted to the Board for review and approval.As a consequence of Simon Turner stepping down from the Board in March 2024,the Board needed to consider the

252、reassignment of the role of Consumer Duty Board champion.Upon review and consideration,it was decided that this should be reassigned to Margaret Hassall.In the fulfilment of her role,Margaret was heavily involved in providing the initial review and challenge before papers were submitted to the Board

253、 for review.In accordance with FCA guidance released in February 2024,the Board was keen to use data to identify,monitor and confirm its satisfaction with customers outcomes and their alignment with the Consumer Duty.As a consequence,in approving the report,the Board took into account,amongst other

254、things,the results of ongoing customer outcomes monitoring undertaken by Product teams to assess whether products and services are delivering expected outcomes in line with Consumer Duty,the results of product reviews,customer research,surveys and Fair Value Assessments.The reporting process also in

255、cluded reporting from the second-and third-line functions to support the activities carried out by the first-line teams.This work culminated in the Board reviewing and approving theGroups first annual Consumer Duty Report which covered theperiod 1 August 2023 to 31 March 2024.In approving the report

256、,the Board is satisfied that the Consumer Duty is being implemented and embedded across the organisation,and that thebusiness was structured to deliver good customer outcomes.In addition,the Board is satisfied that the Groups future business strategy is consistent with the requirements of Consumer D

257、uty.Section 172 duties;a),c),e),f)Key milestones in the Boards oversight of Consumer Duty post-implementation activityFurther detail on our capital allocation frameworkis included onpage 57.January 2024Review and approval of enhanced product governance frameworkApril 2024Review,challenge and approva

258、l of the template for the Consumer Duty reportJuly 2024Review and approval of Consumer Duty report covering the period 1August 2023 to 31 March 2024 March 2024Reassignment of the Consumer Duty Champion role to Margaret HassallMay 2024Review and challenge of the methodology for preparing the report a

259、nd related second and third line assurance activities at R&CC26AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 202427Strategic reportGovernanceFinancial statementsOther informationResponsible businessGrowing our business responsiblyESG is embedded in our business st

260、rategy,ensuring that we continue to grow our business responsibly.Being principled and acting with integrity are at the heart of the AJBell Way,reinforcing a culture with responsible decision making at its core.”Peter Birch Chief Financial OfficerMaking an impactWe are driven by our purpose to help

261、people invest and our product propositions help to address the growing societal need for individuals to take personal responsibility for their financial futures by enabling people to take control of their own investments.During the year we have continued to ensurethat ESG is embedded in our business

262、 strategy with a focus on our four responsible business pillars.We continue to make investing accessible forour customers and this year launched theReady-made pension,a product which provides a solution to millions of people who have lost pensions,consolidating them through one of our low-cost inves

263、tment solutions.You can read more about our responsible propositions on pages 31 to 33.We have made considerable progress in improving diversity within the workforce.OurBoard is now 50%women,and our latestGender Pay report highlights continued improvement in our mean and median gender pay and bonus

264、gaps,positioning us well amongst peers in the platform sector.We were also pleased to be certified as a Great Place to Work in our first year completing the employee engagement survey.You can read more about progress we are making as a responsible employer on pages 34 to 38.The AJBell Futures Founda

265、tion launched last year and is having a great impact in our local communities.We donate 0.5%of PBT to the foundation annually,supporting initiatives that improve education,social mobility and overall wellbeing.More information is provided on pages 39 to 41.We seek to minimise our impact on the envir

266、onment and as such we have set near-term carbon reduction targets and further developed our operational net zero roadmap during the year.See pages 42 to 45 for more detail.We are pleased by the progress we continue to make in these areas whilst acknowledging the need for continuous development.We ad

267、minister over 90 billion of assets forourcustomers financial futures.In the year our customers withdrew over 1.5billion of pension funds for their retirement and just under 2,000 customers used their Lifetime ISAs towards purchasing a first home.1.The use by AJBell plc of any MSCI ESG Research LLC o

268、rits affiliates(MSCI)data,and the use of MSCI logos,trademarks,service marks or index names herein,donotconstitute a sponsorship,endorsement,recommendation,or promotion ofAJBell plc by MSCI.MSCI services and data are the property of MSCI or its information providers,and are provided as-is and withou

269、t warranty.MSCI names and logos are trademarksor service marks of MSCI.11.See page 174 for definitions of the UN SDG targets.We are creating sustainable valueResponsible propositionsOffering products and servicesthatarealigned with our purpose.See p31 Our contribution to the United Nations Sustainab

270、le Development Goals(UN SDGs)We have identified five key targets which we have mapped to our responsible business strategy1.Board of AJBell plcThe Board is the decision-making body relating to ESG matters,taking ultimate responsibility and providing oversight ofmanagementactions.The Board receives a

271、n annual update on our responsible business strategy.Responsible employerDeveloping and supporting our people to help them achieve their potential.See p34 Supporting our localcommunitiesPlaying a positive and supportiverole in our localcommunities.See p39 Environmental awarenessMinimising our impact

272、 onthe environment.See p42 How we govern our responsible business strategyAudit CommitteeThe Committee is responsible for reviewing ESG-related financial information and disclosures.Risk&Compliance CommitteeThe Committee is responsible for ensuring ESG-related risks are effectively embedded in risk

273、management frameworks and risk reporting.Remuneration CommitteeThe Committee oversees that remuneration policy and practices are designed to support our strategy and promote long-term sustainable success.ESG ForumThe NED forum performs reviews and deep dives intospecific ESG topics.The forum provide

274、s recommendations to the Board.Executive responsibilityThe CFO has the delegated authority from the Board to manage our responsible business strategy and is accountable foritsdelivery.Executive Committee members are allocated specific ESG-related objectives in their business areas,alignedtoourstrate

275、gy.ESG working groupOur cross-functional ESG working group is responsible for the co-ordination of day-to-day activities,ensuring we deliver on our objectives,and for the consolidation of our responsible business approach.ESG-related information is reviewed by the working group before being presente

276、d to the Board,its sub-committees or the NED ESG Forum.Our approach We behave in a responsible manner with a focus on our propositions,our people,our communities and the environment.We believe this is important for the long-term sustainability of our business.The Board is responsible for the conduct

277、 of AJBells business and the development of its strategy,as well as promoting the long-term sustainable success of the business.This includes both how we embed our approach tobehaving responsibly across the business and promote a healthy corporate culture.The Board provides oversight and has elected

278、 Peter Birch,Chief Financial Officer,as the Executive Director responsible for our approach to responsible business.Individual objectives have been assigned toExecutive Committee members and a cross-functional ESG working group exists forthe co-ordination of day-to-day activities.This structure allo

279、ws us to fully embed ESG across our existing business strategy.Our Non-Executive Director(NED)ESG Forum enables the Board to provide more focused input into specific areas.In 2024,the Board received an annual ESG update.Details of the oversight provided by theBoard sub-committees are disclosed in th

280、e Governance section of this Annual Report.3.85.510.24.413.228AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 202429Strategic reportGovernanceFinancial statementsOther informationResponsible businessMateriality approach to ESG In order to remain successful in the lo

281、ng term,an understanding of our most material ESG topics is essential to inform company strategy,targets and reporting.We have taken a financial materiality approach to our assessment,considering thefactors which may generate risks oropportunities that have a significant influence on future cash flo

282、ws.In doing sowe considered the International Sustainability Standards Boards(ISSB)IFRS Sustainability Disclosure Standards,which the UK Government has confirmed its We report our approach to offering responsible propositions in three strands:accessibility,product offering,and customersecurity.Acces

283、sible solutions We believe in making investing accessible.Our low-cost,easy-to-use propositions cater for a broad range of investors.We produce content to educate more people about investing.Product offering Our high-quality propositions offer products with a long-term focus.We provide solutions to

284、facilitate sustainable investing and are responsible stewards of the investments we manage on our customers behalf.Customer security We protect our customers data through robust information security control.We campaign on behalf of our customers where we see unfairness and over complex regulations.A

285、ccessible solutionsMaking investment easierAt AJBell,we believe in making investing accessible,whether investing directly or with the help of a financial adviser.Our aim is to help our customers to achieve their financial goals and promote a better understanding andawareness of investment choices th

286、at ultimately deliver good outcomes for ourcustomers,aligned with the FCAs ConsumerDuty.We recently launched the Ready-made pension,a product which offers a free pension finding service to track customers lost pensions and consolidate them into one pot,which is then automatically invested into the c

287、ustomers chosen fund from the range ofour low-cost investment solutions.intention to adopt as part of the UK Sustainability Reporting Standards.We identified 13 ESG factors of material importance to our business,with reference to Sustainability Accounting Standards Board(SASB),our MSCI ESG rating fa

288、ctors and investor feedback.We then assessed each area by potential impact on the Groups cash flow before any mitigating actions.Tohelp inform our assessment,we sought feedback from our investors on which ESG factors they consider most important.To ensure we are regularly reporting on the most relev

289、ant ESG issues,we review our materiality assessment each year.After a review in the year,we have identified systemic risk management and corporate governance as two factors with a higher potential impact on the Group.This assessment highlights that having responsible propositions,effective governanc

290、e,and being a responsible employer are our most material areas of ESG.Inrelationto environmental factors,the nature of our business model means that our impact is relatively low,but it is important for us to ensure that customers have accurate and complete information to use in making investment dec

291、isions.We provide educational investment content to our customers and their advisers through our weekly Shares magazine,podcasts,online resources and adviser events,providing market information and expert analysis to support our customers in navigating their investment decisions.The learn to invest

292、section of our D2C site provides customers with a wide range of resources from investing essentials to in-depth guides.In July,we introduced a highly-competitive cash interest rate for AJBell Dodl ISAs and LISAs,giving customers the chance to earn interest whilst they build the confidence to begin i

293、nvesting in the products streamlined offering of investment funds and shares.AJBell Dodl broadens our reach to a new generation of investors across the D2C segment.It is a commission-free service,aimed at less-experienced investors and is amongst the best-value investment platforms on the market.AJB

294、ell Touch is a mobile-focused platform service that will broaden ouroffering to financial advisers and help themserve a wider base of clients through adigital service model.As part of our purpose to make investing easier,we introduced a package of price reductions across our platform in April.On our

295、 advised platform,we removed both the SIPP in-specie transfer-in charge and the charge relating toconversion of a SIPP into a Retirement Investment Account.We also reduced annual custody fees for advisers investing via the Funds&Shares Service(F&SS).On the D2C platform,we reduced the costs of dealin

296、g charges on shares,ETFs,investment trusts andbonds from 9.95 to 5.00 per trade,while charges for frequent traders have been reduced from 4.95 to 3.50.Alongside this,we also increased the interest rates paid out to customers on their cash balances held on the platform,including higher rates of inter

297、est on cash held in pension drawdown.MediumHighAlignment to responsible businessCorporate governanceHaving an effective system of rules,practices and processes by which a company is directed and controlled.Systemic risk managementManaging the risks arising from large-scale weakening or collapse of o

298、perational systems upon which the business depends.RPData privacy and securityAddressing the management of risks related to the collection,retention,and use of sensitive,confidential user data and the resilience of IT infrastructure to cyber-attacks.RPEmployee engagement,health and wellbeingEnsuring

299、 our employees are paid fairly,engaged at all levels and the provision of ahealthy and safe working environment including support of their physical and emotional wellbeing.RETalent developmentEnsuring the Group has the ability to attract new people as well as retain and develop a highly-skilled work

300、force.RETransparent customer informationProviding adequate and clear information about our products and services to support our customers in navigating their investment decisions.RPCorporate behaviourOverseeing and managing business ethics issues such as fraud,corruption,executive misconduct and neg

301、ligence.Diversity and inclusionEnsuring our culture,hiring and promotion practices embrace the building of a diverse and inclusive workforce throughout the organisation,that reflects both the local communities in which we operate and our customer base.REResponsible investmentIntegrating environmenta

302、l,social and governance considerations into the management of our investment products and the investments we offer on our platform,and the provision of data and content to support customers in making responsible investment decisions.RPSocial advocacyIncludes lobbying efforts with public policy maker

303、s and investment in initiatives toadvance societal issues,such as reducing the gender investment gap.RP SCOperational emissionsMinimising our operational carbon footprint.This includes both direct emissions and indirect emissions in our value chain.EALocal communitiesSupporting the economic developm

304、ent of our community and preserving the local environments in which we operate.SCFinanced emissionsMinimising the carbon footprint associated with our AJBell Investments funds andManaged Portfolio Service.EA Environment Social GovernanceRP Responsible propositions RE Responsible employer SC Supporti

305、ng our local communities EA Environmental awarenessMaterial topics and potential impact on our businessThe chart below outlines the inherent potential impact on the Groups cash flow before any mitigating actions.Responsible propositionsOur focus on helping people to invest guidesour product philosop

306、hy:ensuring weoffer accessible investing solutions designed to help our customers to achievetheir long-term financial goals.StrategyWe offer products and services aligned to our core purpose to help people invest.We do this in a way that helps our customers to achieve their financial goals,whether s

307、elf-directed or with the support of an adviser.We also provide options for customers to invest responsibly on our platform and are responsible stewards of the investments we manage on our customers behalf.Why it is importantOur aim is to make investing easier and empower people to invest for their f

308、inancial futures.In fulfilling our role in society,itis pivotal that we offer propositions which enable more people to invest.Who it impactsCustomers and their advisers,wider society,shareholders.2024 highlights Launch of the Ready-madepension.Introduction of new pricing structure,with reduced charg

309、es and higher rates ofinterest paid to our customers.Retained our 4.8-star Trustpilot customer rating.UN SDG targets4.413.25.530AJ Bell plc Annual Report and Accounts 2024AJ Bell plc Annual Report and Accounts 202431Strategic reportGovernanceFinancial statementsOther informationResponsible businessP

310、roduct offeringOur platform product philosophyWe provide mainstream products that we believe will help our customers manage their investments for the long term.Our core products are SIPPs,ISAs and Dealing/General Investment Accounts.SIPPs and ISAs enable customers to invest for the long term in a go

311、vernment-approved,tax-advantageous way and we also offer variations of these products,such as the Lifetime ISA and junior products,ensuring that we cater for a wide range of customer requirements.We offer an open-architecture platform with investment solutions from market-leading providers and our o

312、wn AJBell Funds and MPS,which cater for a wide range of risk appetites.Through our products,customers can buy,sell and hold a broad range of investments including shares,collective investments and other instruments traded on the major stock exchanges around the world.Our research shows that,onaverag

313、e,women in the UK have lessthan half the level of savings andinvestments than men do,equatingto an estimated 1.65 trilliongender investment gap.We are seeking to help change this through AJBell Money Matters,which aims to empower women with the confidence and knowledge to start theirinvesting journe

314、y.The initiative continues to publish biweekly podcasts and articles,supported by dedicated social media channels,strategic partnerships and both internal and external events.FY24 has seen a 240%increase in email subscribers,a 16%increase in podcast downloads and a 68%YOY uplift in website views.Fur

315、ther information on all our articles,podcasts,reports and events can be found at ajbellmoneymatters.co.uk.A series of exclusions removes companiesfrom certain industries,suchastobacco,controversial weapons,andadultentertainment.Then,a best-in-class ranking system means that,for the remaining compani

316、es,ESG credentials are factored into relative index weights,alongside market capitalisation.Customer protectionInformation security We hold significant amounts of data relatingto our customers,products,and business.We recognise that protecting thisinformation is critical to the success ofour busines

317、s and the safeguarding of ourcustomers.We adopt the principle of defence in depth to provide multiple layers of protection for critical information and systems.This ensures that there are multiple controls and processes,ensuring protection is both robust and resilient.Our security processes are alig

318、ned with industry best practice including ISO 27001 and the US National Institute of Standards and Technology Cyber Security Framework.Information and cyber security threats are continually evolving.To enable our security teams to stay up to date,we leverage external threat intelligence to understan

319、d who might be targeting the Company and our customers.This capability assesses the techniques and tactics used by attackers and helps ensure our controls are appropriate.We combine this capability with regular collaboration and sharing with industry groups and regulators to understand the threats a

320、cross the sector.To ensure our security teams skills remain current with attacker techniques,we invest in regular training and development for staff,working towards industry-recognised qualifications.We recognise that technology-enabled crime can happen at any time of day and as such operate 24/7 mo

321、nitoring,provided by a Security Operations Centre.This capability monitors our systems and controls for any anomalies or alerts and ensures they are immediately investigated by security experts.Our products and platforms have security baked in by virtue of a Secure Software Development Lifecycle.Thi

322、s ensures that security is considered as part of every stage oftechnology deployment,from procurement and design through to implementation and maintenance.Our systems are regularly tested by accredited third-party ethical hackers who undertake penetration testing exercises to ensure our systems are

323、resistant to attack.Wehave conducted disaster recovery exercises utilising cloud technology,enhancing our operational resiliency.This,combined with a process of continuous review and testing,ensures that our controls are always improvingto enhance the security of ourcritical systems and data.Integra

324、tion of ESG into our investment managementAJBell Investments invests across multiple asset classes and implements its investment strategy predominately through a universe of mutual fund instruments that are either actively or passively managed.The investment policy statements that govern all our dis

325、cretionary mandates contain a dedicated section detailing how,and the extent to which,stewardship and ESG considerations should be factored intoour investment management activities.Thisallows us to deliver for our customers byacting as responsible stewards of the investments that we manage on their

326、behalf.As outlined within our Voting&Stewardship Policy,we only select products from investment firms that are themselves signatories to the UK Stewardship Code or can provide a strong explanation as to why they do not comply.Fundamentally we are looking for alignment with the UK We recognise that o

327、ur staff are our most valuable asset when it comes to protecting critical information and systems.All staff undergo security training,and we provide regular advice and guidance to staff via all staff updates and intranet blogs.Regular phishing testing is conducted to ensure our staff not only know h

328、ow to identify an attack,but also respond in a timely and effective manner.A positive security culture is encouraged from the top of the organisation,starting with the Board,to every member of staff.We encourage open and active dialogue with security from all areas of the business toensure our contr

329、ols remain effective andenhance the safety of our customers anddata.Campaigning on behalf of retail investors We actively seek to lobby the Government and regulators via public consultation and with policymakers where we see unfairness or unnecessary complexity.Our focus is always on campaigning for

330、 simplicity and good customer outcomes.We have long campaigned for ISA simplification and during the year have beensuccessful in our campaign against the introduction of the UK ISA proposed in the March Budget statement,with plans for its introduction now scrapped under the new Government.We continu

331、e to campaign for further simplification of the ISA landscape,both with the Government and regulator,and believe that the focus should be on combining the best features of the current framework into a single One ISA product.This would prevent customers becoming overwhelmed by choice and make investi

332、ng easier.We continue to work with the Treasury and FCA on their joint review of the boundary between advice and guidance.We feel there is a great opportunity for our platform to provide a far greater level of useful guidance to millions of people who are unlikely to ever accumulate sufficient wealt

333、h for an independent financial adviser.More recently,ahead of the Autumn Budget,we called for a Pension Tax Lock to prevent the kind of damaging uncertainty and speculation over pension contributions and withdrawals observed across the industry in recent months.Although we were pleased core features ofthe pension tax system remained unchanged in the latest Budget,we will continue to make represent