US - Investment management earnings at JP Morgan Chase have been badly hit by the current "challenging environment".
Earnings fell from around $950m in the third quarter 2000 to just over $730m in the three months to September 30 this year – a decline of 23%. The bank reported third quarter operating earnings of $0.51 per share down from $0.70 for the same period last year.
The fall in asset management earnings were put down to lower management fees as a result of market conditions. Assets under management fell by 10% in the year to September 30, 2001.
JPMorgan Chase chief executive William Harrison said: “In this challenging environment, we think the best strategy is a tight focus on controlling risk and expenses. As the markets return to a more normal environment, our strategic platform will provide significant positive operating leverage.”
Other houses are also announcing falls in earnings with Merrill Lynch posting income of only $0.49 per share for the third quarter compared with $1.09 per share last in the same period last year – a fall of over 55%.
Merrill Lynch is also planning to reduce costs. Chairman and chief executive David Komansky said: “While our results are reasonable given a business environment that was deteriorating we are not satisfied with them. We are accelerating actions throughout all of our businesses to improve profit margins.”
Proposed changes to The Pensions Regulator's (TPR) notifiable events framework so it can be more proactive when corporates make changes will create a very challenging workload, it has been said.
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.