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Cover Price 6.00 The first choice of the professional Financial Planner and Paraplanner November - December 2016 Plus The Great Cashflow Modelling Debate - 11 My 6m firm began in a bedroom Investment Planning post the US Election Investment experts discuss the picture for 2017 post the Donald Trump victory - 28 Colin Lawson on his booming business started at home - 25 Pep up your Social Media skills Social media gurus from America and the UK explain how to attract new clients - 31 DFM Directory The complete UK Listings plus updates - 35 Trusted by millions. With billions. 100% secure savings and investments backed by HM Treasury Our range of products can form the foundation of a balanced portfolio Unique tax-free opportunities including Premium Bonds Some products can be held in a trust or in a SIPP or SSAS nsandi-adviser.com INSIDE THIS ISSUE Social Media - how planners can improve their offering on social media to win new clients 31 How a thriving Financial Planning business grew from humble beginnings 25 17 Julie Lord and Planners News & Comment Gretchen Betts help clients hit by sudden redundancy 33 insider Investment Impact Investing explained and investment news News............................................... 5 6 8 involving a client facing redundancy and how cashflow planning helped him. Social Media Tips and Skills...............31 American Financial Planner Michael Kitces and US social media guru Jeff Lunn who works with advisers across the Atlantic share their top tips on improving online profiles to gain new business. A rallying call goes out to former IFP members from the CISI Platform report warning and columns from the CISI and PFS. The Client Hunter ..............................20 Financial Planning Today s Client Hunter speaks to Anthony Carty Financial Planning director at Clifton Wealth about his top client finding tips and how he s retained clients. Expert views and comment from leading figures including ex-IFP President Julie Lord and ex-AMPS chairman Neil MacGillivray who looks at Sipps challenges ahead. News Report Cashflow Modelling Debate ...............11 Financial Planning Today s online poll has triggered an impassioned debate about Cashflow modelling. Here editor Kevin O Donnell examines the key arguments. Investment Investment Insider .............................33 Financial Planner Danny Cox from Hargreaves Lansdown looks at investment planning in the post-Brexit world. Opinion and Editorial .......................22 Professional Bodies News ...................14 News about the Personal Finance Society CII CISI APFA and events listings. Inside My Business Colin Lawson of Equilibrium ............25 Colin Lawson MD of Equilibrium explains how he developed his thriving firm which was started in a spare bedroom. Financial Planning Today speaks to experts about investment prospects for 2017. DFM Directory ...................................35 A directory with key information for planners on DFMs including data from Defaqto. Insight And Analysis Planner Casebook Gretchen Betts CFPTM ........................17 Diary & About FP Today Magazine Diary ...................................................38 A Chartered Financial Planner is inspired by the loss of a client and his brother to undertake a major fundraiser for a cancer charity. Gretchen Betts CFPTM and ex-IFP president Julie Lord take readers through a real life case Investment Planning Report ..............28 www.financialplanningtoday.co.uk November - December 2016 3 It s child s play Fast easy to use great content for FinancialPlanners Paraplanners and Wealth Managers FP Today www.financialplanningtoday.co.uk Find out what thousands of professionals have already discovered www.financialplanneronline.co.uk May 2016 4 NEWS ITV s Charlotte Hawkins presented the awards Sandy Robertson from Acumen Scottish planners scoop a huge honour at awards Acumen Financial Planning has been named Accredited Financial Planning Firm of the Year. The Aberdeen business scooped the prize at the CISI Financial Planning Conference. It is the first Scottish firm to win the prestigious award. Sandy Robertson CFPTM Chartered FCSI managing director and founder said To be acknowledged for our work with such a respected award is a huge honour. Click here for more Financial Planning award axed as entries weren t that good while no firms enter for other prestigious prize Two Financial Planning awards were axed because entries weren t that good in one category while the other lacked a single candidate. CISI chiefs said they were left disappointed after nobody entered the David Norton Building Excellence Award set up in memory of one of the IFP s founding members. There was no CFP professional of 2016 after the half dozen entrants failed to reach required standards laid down in previous years. The two awards were due to be presented at the CISI Financial Planning Conference. Deadlines for both awards were extended in an attempt to find suitable winners. Campbell Edgar Chartered FCSI head of Financial Planning at the CISI told Financial Planning Today there had been a half dozen entries on the shortlist for CFP pro of the year but the Click here for more judging team said they weren t up to the high levels and quality in practice as they have been in the past . He said it was quite unfortunate but that they weren t that good . Jackie Lockie Chartered FCSI CISI deputy head of Financial Planning said these entries were still very comprehensive well thought out plans but they lacked the extra levels required to be outstanding . She assured unsuccessful candidates that it was not a case of that s not good enough goodbye and that each will be getting individual feedback. Ms Lockie was saddened by the fact no firms entered the David Norton award especially because he had been one of the most influential past presidents of the IFP and was very passionate about Financial Planning . IFP to CISI membership recovers from big drop off The proportion of old IFP members that kept their membership going after the CISI merger dropped to about 50% back in May but has risen again to 82%. Financial Planning Today was told that despite nearly 1 in 5 former IFP members being lost the trend has been towards a return. And recently another 15 lapsed memberships were renewed. The CISI is hoping more will return. Click here for more Grumpy planners told You ve got to dance with us Any Financial Planning members of the CISI acting like Mr Grumpy were urged to give the organisation a chance as the first year anniversary of the merger with the IFP was marked this month. Jackie Lockie CFPTM Chartered FSCI CISI deputy head of Financial Planning issued a rallying call to members at the CISI Financial Planning Conference in October. She told former IFP members it takes two to tango and we need you to dance with us. The CISI team have got will and commitment to make it work she said. She said she had come across many members sitting on the fence and a number who were grumpy . She said I don t blame you at all because I was doing a bit of this before May (when she took up the job). For those of you who ve not been silent and you have been doing this (a bit of grumbling)... tell us what s happening where you are. Give us a chance. Campbell and I are Click here for more Million pound clients gained from campaign Financial Planning firms gained three or four new million pound clients as a result of Financial Planning Week this year it was revealed by Jackie Lockie CFPTM Chartered FSCI CISI deputy head of Financial Planning. The CISI office had 600 phone calls in 24 hours. She said Financial Planning Week this year was a phenomenal success and it was a great asset having the CISI behind us. She said the extra resources of the CISI made a big difference. Click here for more www.financialplanningtoday.co.uk November - December 2016 5 CISI panel including Jackie Lockie right doing our best and we want you to join us. I think we ve made some real progress since we arrived five months ago some things behind the scenes you won t see and some things like at the conference you will see. She pledged to continue working with members. NEWS AND VIEWS PFS Financial Planning festival to host 3 000 delegates The PFS is set to host the biggest conference in the financial services calendar next year. The festival of personal finance and financial planning is to be held at Birmingham s National Exhibition Centre (NEC) on 7 - 8 November 2017. Plans are under way to host more than 3 000 delegates and 150 exhibitors at the new event. It will become the biggest conference hosted by the PFS in its history officials said. The details were first announced this month at a PFS event at Celtic Manor Wales. CEO Keith Richards said the event will offer an insightful and tailorable programme of workshops panel discussions and speakers catering to the interests of the full cross-section of the advice profession . Next year s festival will be the Personal Finance Society s biggest ever event and the biggest conference in the financial services calendar he said. The event will offer members across the country Click here for more on the conference line ups The details were announced at Celtic Manor FCA offices in London FCA accused of deep culture of box-ticking The FCA and PRA have been accused of having a deep seated culture of box-ticking . A report also claimed the cost of running the regulators has grown six times since 2000 to 1.2 billion a year. The FCA needs to ensure it is more transparent according to the highly critical publication called Cultural change in the FCA PRA & Bank of England. Click here for more an opportunity to come together in one place to network share ideas and hear from experts across a range of sectors and areas of specialisation. Nearly 2 500 delegates will have attended four PFS symposiums by the end of this month. Two are still to be held. The attendance for the conference in London is set to be around 900. These events will make way for the new festival. Grabbing the chance to reform New advice allowance should cater for all n recent weeks the momentum of reform that s been building since FAMR has reached a new high with the launch of a series of regulatory consultations from the FCA and Treasury. Most recently the Treasury has sought feedback on the government s plan to allow consumers to use 500 tax free from their defined contribution pension pot to pay for retirement advice. The Pension Advice Allowance has been broadly welcomed by the sector and we at the Personal Finance Society are in agreement that it is an example of the government s commitment to closing the advice gap. While the allowance may not be tax efficient for some consumers it will offer a financial incentive for others who in many cases would not otherwise consider engaging with a financial adviser. But while we are pleased the government is opening new doors to advice we believe that the allowance should go further to ensure all consumers are encouraged to engage with a financial adviser as part of their long-term Financial Planning - not only those with complex advice needs. The Treasury s current proposal limits the allowance to consumers seeking full regulated advice. Many consumers however will not have complex needs but will simply require a retirement income options report or some form of extended guidance. These are often the consumers that are most disengaged due to a perceived lack of affordability of advice. For this reason we are urging the government to consider extending the allowance to these other essential forms of advice . A customer-centric approach would be to restrict payment of the allowance to regulated financial advisers who are best placed to FAMR has provided determine the most appropriate form of advice for their client. a once-in-aThis would ensure a larger pool of consumers is engaged with financial generation advice which is the primary intent of the allowance and the broader FAMR framework. opportunity to FAMR has provided a once-in-a-generation opportunity to re-engage re-engage. with consumers. While our proposed changes may seem pedantic it is important that we capitalise on the opportunity for reform as it may be Keith Richards decades before we get another chance. More IFAs stop selling life insurance and critical illness cover - report Rising numbers of IFAs have stopped selling life insurance to their clients a report showed. Some 8% of IFAs told pollsters that since 2011 they have stopped selling life insurance to their clients and a further 3% planned to do this within 12 months. Another 5% intended to stop selling this at some stage in the future. The corresponding figures for critical illness cover were 8% 5% and 11% respectively. Click here for more I Wealth firm advising schools such as Eton bought for 5million A Buckinghamshire-based wealth manager specialising in advice to schools such as Harrow and Eton has been snapped up in a takeover deal worth over 5 million. Affinity Independent Management and Affinity Independent Schools Consultancy has been bought by Succession via a mix of cash and shares. Doug Muirhead Affinity s managing director said Affinity has occupied a distinctive niche in the advice market. Click here for more Keith Richards chief executive the Personal Finance Society Mr Richards is the CEO of the Personal Finance Society and has more than 30 years experience within the financial services sector. 6 November - December 2016 www.financialplanningtoday.co.uk NEWS Platforms report Tougher times ahead predicted A report on the state of the platforms sector has warned of tougher times to come . About 207bn of assets are in flight due to re-platforming a Lang Cat study has shown with the UK platform market in a state of flux as much of the industry focuses on tech improvements or acquisitions. The Scottish-based consultancy described the 207bn figure as the most significant stat in its research. This represented 54% of total platform AUA (based on AUA of 386.21bn as at Q2 2016). Total net profit for 2016 was 31.86m down from 33.88m for the previous year but growth remains relatively healthy at a similar level to the 20% in 2015. But the report warned of tougher times to come . An early sign of this was that the net-to-gross ratio across the sector is on the decline according to the research which stated that in conjunction with the Mark Polson Lang Cat founder HMRC offices People with assets worth over 1m more than doubles since 2001 The number of UK individuals with assets worth over 1m has more than doubled since 2001 according to new analysis. Wilsons a private client law firm estimated there were 410 000 in this bracket up by 136% from 174 000 in 2001 based on latest calculations from HMRC. The amount of money taken in IHT hit an all-time high of 4.6bn in 2015-16 up 21% from 3.8bn the year before. Click here for more overall healthy growth means that there was more money flowing out of platforms altogether. According to the research the net-to-gross ratio across the sector has been on the decline which could be an early warning sign. Net-to-gross for 2016 was down to 62.7% from 66.72% in 2015. The CISI Column Fintech and Financial Planning - looking to the next stage have just returned from the Global Members meeting of the Financial Planning Standards Board held in Amsterdam. FPSB is the international organisation that owns and promotes the Certified Financial Planner (CFP) certification and marks everywhere outside the USA. Among the many fascinating subjects discussed perhaps the most exciting was the global development of technological tools and their impact on how Financial Planning will be conducted in the future. If you think that you are optimising tools already you ain t seen nothing yet Exponential rise of artificial intelligence applications and bots (software programmes based on AI that have the ability to interact with humans) have the capacity to disrupt significantly the traditional ways that Financial Planners relate to and engage with clients. The FPSB has produced a paper called Fintech and the Future of Financial Planning which can be seen below in summary. Click for more on the FPSB East Anglian Financial Planning firm taken over A Financial Planning firm has been taken over by AFH Financial Group. CRS Financial Planning an East Anglian based business has been bought out in a deal worth up to 663 670. Following the acquisition Chris Stapleton the seller will retire from the business and clients will be serviced by existing AFH advisers. An initial cash payment of 378 920 was to be paid on completion. Click here for more I Global planning chief wants to reach 250 000 CFP Professionals mark Global Financial Planning Standards Board CEO Noel Maye has outlined ambitious plans to increase the number of CFP professionals worldwide from 161 000 now to 250 000 by 2025. He revealed the organisation is planning a global consumer campaign to promote the benefits of Financial Planning as a way to spur growth. He wants to increase the number of territories where CFP professionals work from 26 to 40. Click here for more This looks at the future and identifies three innovations which will have the greatest impact on the future of Financial Planning advice a. Online end-to-end omni-channel solutions will cause a shift in the model for client acquisition engagement and advice delivery. b. Integration of Big Data Bio Data from non-financial aspects of a consumer s life (online social media health behavioural or job related information) that will enable predictive modelling and the nimble execution of adjustments in real-time to a client s financial plan. c. The shift to online mobile apps will erase physical borders dramatically expand product and service options re-invent advisory services empower consumers and increase risk. The implications of these massive changes in the next few years months are examined in the paper and it s a must-read for any profes Why do I think that sional Financial Planner. The CISI supports its members by keeping them up to date change is good. Ask with e-learning materials CPD events on innovation and the latest any dinosaur. technology such as the robo-advice session at this year s annual conference. Big changes are coming and for some it will be scary for Campbell Edgar others good. Why do I think change is good Ask any dinosaur. Campbell Edgar CFPTM Chartered FCSI Head of Financial Planning CISI Campbell Edgar was President of the IFP from 2002 to 2004. He has worked as director at both John Lamb and Bloomsbury Financial Planning. 8 November - December 2016 www.financialplanningtoday.co.uk PARAPLANNING NEWS Virtually impossible to recruit experienced Paraplanners The founder of a Paraplanning firm says it has become virtually impossible to recruit experienced and qualified Paraplanners. Cathi Harrison FPFS Cert CII (MP) who set up Para-Sols about seven years ago said her company had adopted a policy of bringing in graduates for a training scheme instead due to the difficulties she had experienced. The PFS board director speaking to Financial Planning Today magazine explained that it has been more effective to embark on a trainee programme. She said We found the recruitment of experienced and qualified Paraplanners to be virtually impossible hence the graduate scheme. This is partly due to the fact our team are office based which means there are geographical restrictions unlike if we had Paraplanners working from home. We eventually decided to try and grow our own Paraplanners by recruiting graduates starting them as administrators and training them up. This has worked so well that we have just repeated it with our second intake and will do so each summer. That said we are always open to hearing from existing Paraplanners who are looking for a new challenge and are able to work from our offices. Her graduate trainees have included students coming from a wide range of degrees including zoology. Difficulties with recruiting Paraplanners Parasols boss Cathi Harrison Rutherford Wilkinson s new paraplanners join the team You re hired Apprentice Paraplanner trio taken on A firm of Chartered Financial Planners specialising in advice for medics and dentists has taken on three new Paraplanner apprentices. Rutherford Wilkinson based in Newcastle has added Michael Gahagan Joshua Clark and Jessica Wright to its team of 14 advisers. Rutherford Wilkinson operations director Trevor Clark said There is a shortage of supply of quality Paraplanners who are essential to providing fundamental support to advisers. Click for more on Paraplanning have been highlighted as a growing issue for employers in the last 18 months with demand outstripping supply. Financial Planning Today columnist Joanna Hague CFPTM Chartered FCSI a Paraplanner with Doncaster-based Investment for Life recently advocated a similar approach to Ms Harrison. She wrote More advisers should consider training someone up who has the potential to be a star to help them understand how Financial Planning works for their clients rather than expecting your Paraplanner to be perfect from the start. Another planner Nicola Watts CFPTM Chartered FCSI explained earlier this year that she had found it hard to find Paraplanners with the right skills after advertising a vacancy. Paraplanning standard poll reveals reader divide Readers of Financial Planning Today are divided over the Paraplanning standard with slightly more against it than in favour a poll has suggested. Some 47.4% of the 133 votes cast (63) said no when asked if they supported the creation of a Paraplanning standard. Some 43.6% (58) said yes while 9% (12) were undecided. The debate intensified as the CISI revealed it was holding further talks with counterparts at the CII. What do you think Click below. Click for more on Paraplanning The Paraplanning Column John Redmond New Standard risks excluding for wrong reasons T here is no universally accepted job description for Paraplanners. This prompts the question of how one would go about creating a Paraplanning standard that does not exclude certain people for the wrong reasons such as something like If you only write suitability reports you re not a proper Paraplanner . I m yet to be convinced that a new standard is needed at all. A kind of Financial Planning standard already exists through the framework of qualifications and CPD and most of us already meet a standard in this way but not many people appear to be talking about it. What s already out there is sufficient. Level 6 qualifications such as the CFP licence or the APFS Chartered Financial Planner designation (with ongoing CPD required to maintain them) are perfectly suitable standards for most. The Accredited Paraplanner (APP) designation is particularly apt as the examination required to attain this is a pretty robust assessment of some of the skills needed in Financial Planning (and thus Paraplanning). The good thing about these various designations and licences is that they don t distinguish between the specific role that people undertake within their firm and therefore do not exclude certain people just because their modus operandi might not meet everyone s idea of perfect. I realise one argument that often crops up is that these qualifications I m yet to be are not necessarily proof that an individual is any good at their job but convinced that a a new Paraplanning standard would surely not be able to prove this new (Paraplanning) either (unless of course there was a regular forensic assessment of the Paraplanner in question which would not be the case). standard is needed Would the Paraplanning standard improve client outcomes No at all. more so than if all the people involved with the creation and delivery of advice strive to attain the established qualifications available and John Redmond constantly update their knowledge and skill through relevant CPD. We ll make new standard a reality - Hoskin says Standards International the authorised standards body for ISO 22222 and BS 8577 certification has pledged to make the Paraplanning Standard a reality. Michelle Hoskin managing director said No-one appears to be stepping forward to make the Standard a reality. In my view the chances of the professional bodies coming together and creating a working Standard with all the necessary processes procedures and ongoing administrative overview in place are slim. Click for more on Paraplanning www.financialplanningtoday.co.uk November - December 2016 9 COMPANY NEWS & MOVES to Resolution back in 2010 will leave his chief executive role. His exit comes after recent sales of various parts of the Axa business including the Elevate platform in April to Standard Life. Axa said From 2010 Mike and his team have made a significant contribution to the business leading a strategy that saw its assets triple in the space of five years and now stand at nearly 50bn. Consulting Consortium which helps advisers with compliance. Phil Deeks who has nearly 20 years experience had been FCA technical specialist within the life insurance and financial advice sector since July 2014. Previously he held various senior compliance roles at Deloitte and Legal & General. Harry Reeves a business development director with more than a decade of experience in the asset management sector has been hired by Legg Mason. Mr Reeves will be responsible for building on existing relationships across the South of England region and seeking out new opportunities for the business. Click here for more Carl Lamb of Almary Green middle picks up a PFS award Chartered Financial Planner open to sale despite 1825 deal failure Almary Green has said it is open to a future sale after its planed deal with Standard Life deal collapsed. An agreement for 1825 the Financial Planning arm of Standard Life to take over Almary Green fell through it emerged in mid-September. But Almary Green boss Carl Lamb a Chartered Financial Planner has left the door open for another sale in future. 1825 launched last year announced the acquisition of Almary Green for an undisclosed fee in March. An industry insider told Financial Planning Today at that time he would estimate the sale to be worth 7m to 10m based on AUM. A statement on Almary Green s website read Carl is not ruling out a future merger or acquisition of the firm but is determined that it should only happen if the fit is right for the firm s clients staff and directors. Almary Green which provides personal advice to 1 900 clients had 44 employees including 22 advisers and Paraplanners as of March. On the move... A former HSBC private client adviser has been snapped up by Financial Planning firm Towry. Simon Hewitt has been handed the role of Financial Planner and wealth manager in its Knutsford team. An FCA conduct risk specialist has left the regulator for The Axa Wealth chief exits Mike Kellard the man who formed Axa Wealth following the sale of AXA s life company Mike Kellard with family Phil Deeks used to work for the FCA An intelligently designed platform A set of fully researched model portfolios with proven performance All for just 25bps Time for a change of scene Contact us now on 01535 656555 Or email us at enquiries rsmgroup.co.uk members.rsmgroup.co.uk 10 November - December 2016 www.financialplanningtoday.co.uk NEWS FEATURE CASHFLOW MODELLING Cashflow Modelling The great debate has opened Ex-IFP President Julie Lord said recently that some advisers were unsure of the merits of lifetime cashflow forecasts sparking a debate. Just how vital is it for Financial Planning Editor Kevin O Donnell reports. I n September our sister daily news website Financial Planning Today ran a poll on Cashflow Modelling which stirred up major debate on its role in Financial Planning. More than 245 people took part in the poll with the vast majority - 77.4% - voting in favour of the view that Cashflow Modelling (CM) is an essential tool for true Financial Planning. Despite this some 22.6% voted no to the question believing CM to not be essential. The debate has posed the question of what is Cashflow Modelling and is it truly essential to carry out holistic Financial Planning Even the experts are divided on how essential cashflow modelling is. Paul Etheridge chairman of Prestwood Software a provider of Truth Cashflow software and the man credited with introducing CM to the UK as well as being a key figure in the founding of the Institute of Financial Planning believes CM is invaluable and lies at the heart of all good Financial Planning. (see his article on next page). He has many supporters with most Financial Planners believing that CM effectively applying lifetime cashflow modelling tools to a client s long term savings to assess both the accumulation and decumulation phases of a person s lifetime savings is the right way to go. Many say that it is the key to a proper financial plan and building a long-term plan is difficult without it. Former IFP President and Prestwood director Julie Lord a columnist for this magazine (see recent columns) is a strong advocate of Financial Planning and believes more planners and IFAs should use it. Bob Freeman chief operating officer at cashflow modelling software provider Voyant said that cashflow modelling helps to demystify advice leading to better client engagement and buy in . He said it was difficult to envisage circumstances where robust Financial Planning could be done for example in connection with flexible pensions without CM. Others however says that CM has value but is not critical for all Financial Planning situations and not all clients benefit from it because its labour-intensive nature can push up advice costs and it may be too much for some clients with more modest needs and budgets. Leading Financial Planner Martin Bamford said Despite my admiration of the potential of cashflow modelling I don t believe it is essential for true Financial Planning. (see his article next page). Ray Adams Chartered Financial Planner and director of Prestwood competitor CashCalc says cashflow modelling is hugely Opinion is heavily weighted in favour of those who say cashflow modelling is essential for Financial Planning - but not all agree beneficial to Financial Planning but is not essential to all Financial Planning situations. As a Chartered Financial Planner who has developed my very own cashflow modelling tool CashCalc you d expect me to say that cashflow modelling is essential to Financial Planning. But in fact I agree that it is not essential. Yes cashflow modelling is hugely beneficial to the advisory process but there are many IFAs doing a very good job without the need for a cashflow plan. The application of cashflow modelling is dependent on many factors including the type of business you do Is cashflow modelling essential for true Financial Planning Yes No and the type of client you are servicing. So if you do not require a cashflow plan then I do not believe it to be essential. US Financial Planning and Life Planning guru George Kinder also believes CM is useful but not always critical. He said Cashflow modelling is extremely useful but not essential to good Financial Planning. We have used cashflow modelling often to great effect for short and intermediate term decision making for moderately well to do clients. For many middle market and poorer clients it can smack of selling product to insist they pay for cashflow modelling. Campbell Edgar Chartered FCSI the CISI s head of Financial Planning said It is a fact that FPSB Standards for a competent plan pass to gain the CFPTM Professional accreditation do NOT require a cashflow. Yet many candidates entering the Diploma in Financial Planning CFPTM assessment believe that a comprehensive cashflow is obligatory. Once you have gained the CFPTM accreditation it might make sense to move into using cashflow modelling as a tool but with two provisos one - you understand what is going on that is the relationship between inputs and outputs and two - your client understands (at a high level) what it means and agrees the implications. Continues on page 12 Number of Voters 245. Source FP Today website www.financialplanningtoday.co.uk November - December 2016 11 NEWS FEATURE CASHFLOW MODELLING Cashflow modelling crazy or brilliant Prestwood chief Paul Etheridge on the importance of CM for Financial Planners P restwood does not claim to have invented Cashflow Modelling . What Prestwood pioneered was lifelong Cashflow modelling linked to the development and achievement of clients desired lifestyles. Pre-Prestwood a common view was that it was silly or pointless to develop cashflow plans for more than a few years ahead because the planning assumptions would inevitably turn out to be inaccurate. The missing ingredient was the annual planning meetings enjoyed by Prestwood clients. The implications of introducing a Financial Planning service and annual planning meetings are far reaching. These meetings not only enable lifelong cashflow plans to be adjusted in line with changed circumstances. They provide the means of developing the trusted adviser reputation that is fundamental to the success of Prestwood-style businesses. Benefits Profitable businesses can be developed with a relatively small number of fee-based clients. Appropriate fees can be time-based with a minimum monthly or annual charge sufficient to enable the Financial Planners own objectives to be achieved. Appointments for annual planning meetings can be agreed at the previous meetings thereby demonstrating to clients the certainty of ongoing service. At any time not just at annual planning meetings changed circumstances raised by clients can be inserted into the software and accurate answers to clients questions can be given without delay. Although it would be possible to produce updated financial plans with spreadsheets nothing can compare with the immediate adjustments and conclusions available with the aid of good cashflow modelling Financial Planning software. The need for new clients is much reduced. Planning expands naturally to include other family members and friends. A common view was it was silly to develop cashflow plans for more than a few years ahead . Paul Etheridge Paul Etheridge MBE TD JP MBA FIFP FCII CFPCM Prestwood founder Founder of the Prestwood Group of companies and a pioneer of fee-based Financial Planning using cashflow modelling software. Paul s career in financial services spans over 50 years. He started up his small fee-based Financial Planning firm 38 years ago and it has been over 25 years since Prestwood facilitated the formation of the Institute of Financial Planning (IFP). He is a Certified Financial Planner and a Chartered Insurance Practitioner. Cashflow modelling Useful not essential Chartered Financial Planner Martin Bamford MD of Informed Choice explains his views. ike many Financial Planners we use cashflow modelling in our business. When used well it can be a powerful tool and will often elicit a significant positive response from clients. As a way to give couples peace of mind especially as they manage their finances in retirement I am hard pressed to come up with a more practical alternative. In many instances the use of lifetime cashflow forecasting has given us the confidence to advise our clients they can spend more in retirement. It has given our clients the confidence to take additional holidays carry out improvements to their properties and even get children firmly onto the housing ladder. Despite my admiration of the potential of cashflow modelling I don t believe it is essential for true Financial Planning. Allow me to explain why. Cashflow modelling is as we all know based on a series of assumptions about the future. It attempts to illustrate one or a number of possible scenarios and in some cases place a degree of probability on these outcomes. If you need reminding of the importance of these assumptions try running the same client through two different cashflow modelling tools. Even the same tool accidentally reverting to its default assumptions away from those your firm has carefully considered and updated will result in widely different outcomes. We accidentally ran a forecast the other day (thankfully during the pre-meeting rehearsal) on a laptop which had L reverted to default assumptions. Suddenly the client who had the peace of mind she would not run out of money before her 100th birthday was facing a cashflow crisis during her golden years. The longer the term of the forecast the greater the amplification of these forecast variations when assumptions are tweaked even slightly. It is well within the grasp of a competent Financial Planner to fully appreciate what these assumptions mean to the outcome of the forecast. No doubt all Financial Planners explain the importance of these assumptions to their clients while at the same time positioning cashflow modelling as an art not a science. Placing too much emphasis on an art form could risk undermining the professional status of Financial Planning. If we position cashflow modelling correctly and consider shortening the term of projections - or at It should not in its least present long-term projections based unadulterated form on a range of assumption sets to illustrate the wide variance of outcomes then it as software be has a role to play in the Financial Planning considered essential. process. It should not in its unadulterated form as software be considered essential for Martin Bamford Financial Planning. Martin Bamford CFPTM Chartered MCSI FPFS is managing director at Informed Choice in Surrey. He is a Chartered Financial Planner and Chartered Wealth Manager and a SOLLA Accredited Later Life Adviser. Martin Bamford CFPTM Chartered MCSI FPFS MD of Informed Choice 12 November - December 2016 www.financialplanningtoday.co.uk .COM Pecnrsioncs s a y subje t a A NEEDING HELP D HAN AVAILABLE NO W Wha do t opt i ha ions ve If you have clients who are wary about pensions Pension Monster can help. Pension Monster is a FREE digital retirement planning tool that educates and inspires people to prepare for their future. It s easy to use and makes people comfortable about pensions and savings. Pension Monster allows your clients to create their own bespoke report which informs them about three popular retirement options how much more they should be saving to achieve their retirement budget and shows a range of suitable products available. Pension Monster is an efficient way to gather client information leaving you to choose how best to serve them. Pension Monster includes State Pension Information A Budget Planner Shortfall Summary Choice of Investment Scenarios Effects of Taxation Multiple Providers Products with Funds & up to 10 Features Link & Track Service for advisers included with any Selectapension subscription Pension Monster helps bridge the advice gap. To find out more visit www.selectapension.com pensionmonster t guidance a retiremen the FCA. Monster is ulated by Pension a is not reg and advice from tool only nt ofessional ld seek pr ny significa aking a Users shou r before m ts. advise arrangemen regulated ir financial ges to the chan and er is owned nsion Monst ctapension Ltd. Pe Sele powered by PROFESSIONAL BODIES Keith Richards PFS CEO Another two PFS symposiums to take place Two more PFS national Financial Planning Symposiums are set to take place this month. Birmingham and Wembley Stadium London will host the events following one at Celtic Manor in Wales on 10 November. Former IFP chief executive Steve Gazzard will be among the Personal Finance Society s line up of key speakers for the national Financial Planning Symposiums. He will deliver presentations on the future of Financial Planning. financialplanningtoday.co.uk CISI Conference panel including CISI CEO Simon Culhane right CISI wants Chartered level playing field with PFS The Chartered Institute for Securities & Investments is to seek a more level playing field with the PFS s rival Chartered Financial Planner qualification. The move could eventually see the CISI awarding its own Chartered qualification for Financial Planners or sharing the designation. CISI chief executive Simon Culhane during the CISI Financial Planning conference in October said he believed there was merit in the CISI being able to award its own Chartered qualification to its Financial Planning members to level the playing field and reflect their professional status more clearly. The CISI has declined to comment further on its strategy to achieve this but an approach to the Privy Council which governs Chartered designations is likely to discuss the matter. The CISI is already a Chartered organisation but its designation used now by many of its Financial Planning members has the title Chartered Wealth Manager not Chartered Financial Planner a title used by the PFS for its designation. More than 2 000 of the CISI s 40 000 members use the Chartered Wealth Manager designation including many Financial Planning members. The IFP did not have a Chartered designation and its members achieving its highest qualification used the title Certified Financial Planner. The merger last year allowed ex-IFP members to use the financialplanningtoday.co.uk 222 Chartered Financial Planners join PFS ranks The PFS has welcomed more than 400 new Chartered Associate and Fellow members to its ranks at its biannual graduation. Each year the PFS invites all members who qualify as an Associate or Fellow or achieve Chartered status to one of two graduation days where they are formally recognised in front of hundreds of their friends and family members. Of the 410 graduates formally recognised in October 222 reached Chartered status 37 have reached Associate level and 151 have been inducted as Fellows. financialplanningtoday.co.uk Chartered Wealth Manager designation after taking an online integrity test. Ex-IFP members who want to call themselves Chartered Financial Planners must seek the rival Personal Finance Society route to this. Among the routes that may be considered by the CISI to remedy this could be sharing the designation with the PFS or using another agreed by the Privy Council. Many CISI members who wish to use the designation Chartered Financial Planner and remain members of the CISI must be members of both the CISI and the PFS. Many choose to do this although it requires them to pay fees to two similar professional bodies. Chartered status or Royal Charters as they are more formally known are awarded and governed by the Privy Council. The Privy Council is a formal body of advisers to the Queen. Keith Richard PFS chief executive said It is interesting that CISI has described the current marketplace as an unlevel playing field. As the financial advice sector s largest professional body we ve made significant strides in the past three years but have always welcomed collaboration rather than competition. Our Chartered Financial Planner designation has continued to grow in demand post RDR and consumers now recognise the value of the Chartered brand. One-stop-shop app launched by the PFS The Personal Finance Society has created a new smartphone app designed to be a one-stopshop for its thousands of members. The application made available in September has been designed to support all PFS events in one place allowing members to book forthcoming events or review past ones. The app shows lists of speakers with profiles interactive programmes and details on sessions sponsors exhibitors and the venue. financialplanningtoday.co.uk Treasury Minister at APFA dinner the night before Autumn Statement The Association of Professional Financial Advisers will hear from the Economic Secretary to the Treasury on the evening before the Chancellor gives his Autumn Statement to Parliament. Simon Kirby the Economic Secretary to the Treasury will be the keynote speaker at APFA s 2016 Annual Dinner. The dinner will take place on Tuesday 22 November at the Plaisterers Hall One London Wall. The day after new Chancellor Phillip Hammond will deliver his first ever Autumn Statement and the first major Budget related speech since the Brexit vote. Mr Kirby has a ministerial portfolio which includes responsibility for retail financial service issues such as consumer finance financial advice and capability. He has previously served on the Business Innovations and Skills Select Committee and was PPS in the Foreign Office and the APFA director general Chris Hannant Department of Health. Chris Hannant director general at APFA said I am absolutely delighted that Simon will be speaking at our dinner on the evening before the Chancellor gives his Autumn Statement to Parliament and outlines the new government s taxation and spending plans. At a time when it is more important than ever that people can access professional financial help when planning for their financial future I particularly welcome the opportunity to hear the minister speak about how government regulators and the advice community can work together to make this happen. 14 November - December 2016 www.financialplanningtoday.co.uk PROFESSIONAL BODIES New exam for planners to become pension transfer specialists Financial Planning CII Diploma holders will be able to become qualified pension transfer specialists through a new pension transfers qualification. The Chartered Insurance Institute has launched the new Level 4 Certificate in Pension Transfers. This includes a new Level 6 unit (AF7) Pension transfers open for enrolments in July 2017. Following FCA approval expected in February advisers who hold the CII Diploma in Financial Planning but not G60 or AF3 will simply need to complete AF7 in order to become qualified pension transfer specialists. AF7 involves 50 fewer learning hours than AF3 given its specific focus on pension transfers. The new qualification enables advisers and non-advisers seeking to undertake pension transfer work for the first time to become pension transfer specialists the CII said. The Certificate also has three existing CII Level 4 units (R01) Financial services regulation and ethics (R02) Investment principles and risk and (R04) Pensions and retirement planning. CII development director Steve Jenkins said the new Certificate develops the in-depth knowledge and practical skills needed by anyone seeking to advise on the transfer of safeguarded benefits an increasingly important part of the advice process following the Government s pension reforms. Mr Jenkins said Greater freedom and CII development director Steve Jenkins choice for retirees and tighter controls around who needs to seek advice mean that pension transfers and related advice are now more relevant than ever. It is against this backdrop that we are stepping up our support with a dedicated pension transfer qualification and exam unit. Some 7 000 CII SPS holders are qualified to provide pension transfer advice holding either withdrawn CII unit (G60) Pensions or current CII unit (AF3) Pension planning. The CII will also introduce a new Level 6 Advanced Diploma unit (AF8) Retirement income planning in October 2017 covering aspects of pension planning not covered in AF7. Together the two new units will replace AF3 which will be withdrawn in April 2018. AF7 study material will be available from July 2017 and first exam in October 2017. The CII added In April 2018 we will withdraw Advanced Diploma unit (AF3) Pension planning our current FCA appropriate exam for pension transfers. This gives those working towards AF3 three further exam sessions to complete the unit. Given that pension transfers have become an increasingly important part of the advice process we are stepping up our support by splitting out pension transfers and broader pension planning issues across two new unit topics. AF3 will therefore be superseded by AF7 and new unit (AF8) Retirement income planning. SELECTED NOVEMBER-DECEMBER PROFESSIONAL EVENTS Professional body APFA Title details APFA 2016 Annual Dinner Date 22 11 2016 Venue Plaisterers Hall One London Wall. Time 7.45pm Guest speakers Simon Kirby MP Economic Secretary to the Treasury Price Contact details booking Tables of 10 Contact the events APFA member 2 400 VAT team on 020 7628 Non-member 2 600 VAT 1287 for full details. Single place APFA member 240 VAT Non-member 295 VAT Free to members Non-attendance fee 50 Non-members 100 free for members free for members 0121 704 2784 cpdevents cisi.org CISI CPD event - European Economic Outlook London National Financial Planning Symposium 23 11 2016 Deutsche Bank Deutsche Bank 12pm 1 Great Winchester Street London EC2N 2DB Wembley Stadium London Coventry Road Bickenhill Solihull West Midlands B92 0EJ Hogan Lovells International Atlantic House Holborn Viaduct London EC1A 2FG 8am to 4pm 8am to 4pm 12pm Mark Wall Chief Euro Area Economist Deutsche Bank Keith Richards PFS chief executive Steve Gazzard ex-IFP CEO Keith Richards PFS chief executive Steve Gazzard ex-IFP CEO Mark Steward Director of Enforcement and Market Oversight FCA - To be confirmed PFS PFS 24 11 2016 Birmingham National Financial 29 11 2016 Planning Symposium CPD event - Compliance Forum FCA Enforcement Update 30 11 2016 CISI Free for all members Not cpdevents cisi.org available for non-members Please be aware that if you do not attend this event without informing the CISI there is a charge of 50. various option with tickets starting at 123 for one day only 15 per person limited availablity Call 020 7645 0655 Email customersupport cisi.org nikki.macmillan cisi.org or call 44 20 7645 0638. CISI The Scottish Conference 5 and 6 12 16 Norton House Hotel Ingliston Newbridge Edinburgh Newbridge Midlothian EH28 8LX 8 12 2016 Malmaison Hotel in Cheltenham 1.30pm See website CISI Cotswolds Branch Christmas Dinner 2016 7pm TBC www.financialplanningtoday.co.uk November - December 2016 15 ADVERTISING FEATURE SYNAPTIC Planners must constantly challenge their platform assumptions choice can frequently be made in the opinion of the FCA for the benefit of the adviser at the cost of the client. Rory Percival the closest thing to a regulatory rock star that exists who has helped countless organisations achieve a constructive perspective on their due diligence recently left the FCA and mused on the attitude of many practice managers towards platforms. He said I was heavily involved in platforms from the start. Platform due diligence is a good demonstration of the ethics bit not working . Our experience as a provider of due diligence tools bears this out. We know that some firms do not wish to examine their preferred platforms in detail particularly from a cost point of view as they are more than happy. The real hazard exists in that they are over reliant on their platform s tools investment risk management and reporting and have ceased to make any meaningful external comparisons. The issue under discussion today is the broader role of platforms and how the landscape is changing. AUM held on the main platforms has exploded over recent years representing 35% of the 1.1 trillion of retail investment (2015 IA figures). Platforms are indispensable to advisers at the current time providing effective custody and management of client s investments. Platforms facilitate adviser charging. We should though be cognisant of change and its implications. Some relevant insight has been provided by a couple of the industry s respected commentators The LangCat led by Mark Polson has provided some interesting analysis indicating that over half of platform assets are under transition due to mergers sales and technological re-platforming. That s 207 billion out of 386 billion. That is too significant not to have an impact though that is not to say that we will return to the old days of dire interruption of service. It is the scale of change that poses a risk. Consultancy FinalytiQ has done some interesting number crunching around profitability. This aims to quantify the seemingly eye-watering investment that has gone into the insurers platforms. Standard Life Axa Wealth Elevate and Zurich reported 50m in pre-tax losses accumulating nearly 500m in losses since inception (2014 figures). This proves if nothing else that there is more to platforms than meets the eye. Profitability argues FinalytiQ is important if growth service and technological development are to be sustainable. A typical client may be looking at an investment horizon of decades including over 30 years of retirement in the post pension freedom world. Disruption if not correctly anticipated and managed could be devastating to a firm that is overly reliant on a single platform and a homogenous client base. Good news is reflected in the many research reports that are circulating indicating that all customer groups will continue to value advice including for example millennials (and their love of self service and technology). What is not so clear is how platforms will evolve to maintain their role as custodians. Either way it is worth improving platform due diligence to keep abreast of things and your options open. By Eric Armstrong Product Marketing Synaptic Software Limited llegiance to a platform can come at the cost of the client because in some cases firms no longer adequately review the options available to the client because the firm was happy with the service from the providers they were using. (FCA TR16 1) In some ways the main narrative our industry has tried to get away from is a discussion about platforms the dominant theme for several years. Except the core principal of Treating Your Customer Fairly has re-emerged in the recent thematic review paper TR16 1 which highlights a specific concern relating to platform due diligence. You must consider the suitability of the platform service itself says the paper because platform A About Synaptic Software Leading the market for over 20 years Synaptic Software lends power to the performance of UK financial services. Trusted by over 50% of IFAs Synaptic Software is proven to make a difference. Our complete suite of tools delivers objective independent and comprehensive information in real-time while providing a complete audit trail and state-of-the-art due diligence. Synaptic Software Limited sales synaptic.co.uk 0800 783 4477 www.synaptic.co.uk 16 November - December 2016 www.financialplanningtoday.co.uk PLANNER CASEBOOK Mark and wife Margaret were hit with Mark s sudden redundancy and needed options quickly How we helped clients facing sudden redundancy Financial Planners Gretchen Betts and Julie Lord who recently launched Magenta Financial Planning in Wales explain how they helped a client who had been made redundant and wanted a new lifestyle. Casebook Brief Mark 55 is a highly successful executive and a longstanding client. Over the years we have produced for him and his wife Margaret a lifetime cashflow forecast. We regularly meet and review this lifetime cashflow forecast for them and over the years this has been altered to reflect changes in their lifestyle and needs. Mark approached us a few months ago with a significant change in his circumstances he had been made redundant and was negotiating his exit package with his employer. It was all happening very quickly for him and he needed to know what questions to ask or what to demand by the next day. His key objective was to maintain their lifestyle over the longer term spending circa 65 000 per year and to increase their holidays once they both retired. A key concern was to ensure Margaret who s personal provision in pensions was significantly smaller would be secure if Mark died before her. Mark didn t want to stop working despite his lifetime cashflow forecast illustrating that he could afford to. This is a real life case study. Names and some other details have been changed to protect confidentiality. Picture posed by models. ark aged 55 is a highly successful executive for a large UK engineering firm in London earning a six-figure salary for many years. He has been a longstanding client and over the years we have produced for him and his wife Margaret a lifetime cashflow forecast incorporating their short and long term objectives and goals. His wife Margaret also works earning a good salary and enjoys her job. They live in London and own their home valued at circa 960 000 unencumbered. They enjoy a few holidays each year with friends as well as M eating out going to the theatre and spending time with their pets. They have always planned to retire at age 60. A few months ago Mark contacted us to let me know that he was being made redundant and he was negotiating his exit package. It was all happening very quickly and he needed to know what questions to ask or what to demand - by the next day The initial offer wasn t great considering the years he had worked there. As we already knew all about his income expenditure assets and plans for the future (this had been updated only six months before) we were able to quickly review his lifetime cashflow forecast confirming he could afford to leave without worrying too much about the quality of redundancy package. However we did advise that his negotiation should include the option of taking his final salary pension in full (earlier than the normal retirement age of 62) without penalty and to retain all of his share options. The general redundancy package was poor but with these additions it would offer Mark the same security in the Continued on page 18 www.financialplanningtoday.co.uk November - December 2016 17 PLANNER CASEBOOK What Happened Next... This is a relatively new occurrence so we are currently in the process of transferring the benefits for Mark. However he is now clear about his financial position and has greater clarity about what could be paid to Margaret should something happen to him. He can also move forward in searching for further consultancy work safe in the knowledge that we are able to ensure they can continue to support their lifestyle without paying unnecessary tax. The freedom of not having a Monday-Friday position and working long hours has encouraged Mark to look into taking more holiday time and be able to spend more time with Margaret. While they have been clients for many years this latest turning point in their life has reinforced our relationship and their understanding of the importance of their lifetime cashflow forecast. We will continue to meet annually and review and revise their plan for them. Continued from page 17 future as he would have had if he had worked to normal retirement age. The pension benefits were significant if paid in full without penalty. He managed to negotiate a good deal but with several pension options to consider. So we got together for a meeting and had a detailed discussion about how the changes and choices now on offer could affect Mark and Margaret s long term plan. Their plans for the future remained unaltered the key objective being to maintain their lifestyle over the longer term (spending circa 65 000 per annum) and increase their holidays once they both retired. Mark told me that he had every intention of finding another job and already had several offers including consultancy work. One of their key concerns was to ensure Margaret who s personal provision in pensions was significantly smaller would be secure in the event of Mark pre-deceasing her. The upshot of the offer was that Mark could take his pension immediately (at 55) without a 7 year actuarial reduction (normal retirement date 62). Instead he would get the pension as if he was already age 60 that is only a two year actuarial reduction meaning he would receive 91% of the overall pension he could have expected if he had been employed to 62. If he didn t take these special terms within six weeks of the letter he would lose the offer and if he then decided that he needed to take benefits before 62 (for example if he didn t get new work) he would incur the full reduction applicable as normal. In addition the scheme had offered a Transfer Value in the region of 1.6 million and Mark was keen to weigh up the pros and cons of transfer versus special terms offered on redundancy. At this stage we undertook several important steps for Mark and Margaret. Firstly we applied for a Transfer Value Analysis report to be undertaken by a third party specialist to ensure that we looked at all options in detail. We also modelled the different pension scenarios in their lifetime cashflow forecast showing the different income options on offer and the alternative transfer out of the scheme. This also considered what would happen in the event of death or illness. We considered and explained to them the impact taking the pension income and continuing to work would have on his personal taxation. The income from his scheme if triggered would be permanent and inflexible. If he continued to work for several years earning even half of his previous salary the combination would make him an additional rate tax payer. Our forecasting showed that based on a 5% per annum return leaving the scheme and transferring benefits to an alternative personal pension where he could be flexible with his pension benefits would leave them in a better position. But what about the actual required critical yield When the Transfer Value analysis came back the results were surprising. Considering the benefit levels and spouse s pension available from the scheme we had expected the analysis to support Mark remaining in the scheme. However the detailed report showed that in fact the critical yield required to match the benefits from the scheme to Mark s age 105 was 4.7% per annum (net of all charges). The critical yield required to his average life expectancy was even lower at 2.2% per annum. In addition the analysis also highlighted that based on an average investment return of 5% per annum the death benefits from a personal pension would exceed the death benefits from the company scheme from Mark s age 59 onwards. We considered these required yields in line with his appetite to risk and capacity for loss and established that this was suitable for him. On receipt and understanding of all this information we proceeded to make detailed recommendations for Mark to accept the transfer weighing up the pros and cons of this complex case. We discussed the recommendations in a meeting with Mark and Margaret who were really pleased with the outcome. We managed this all within the six week decision window. The upshot is that Mark will be able to make a clean break from his old company maintain maximum flexibility with his pension benefits and income tax planning ensure Margaret is secure should he pre-decease her and also take a higher amount tax free (25% of fund value) than was available via the corporate scheme. He can also continue to work on a consultancy basis and draw income as and when he needs it taking advantage of pension freedom options and considering phasing his pension using the Uncrystallised Funds Pension Lump Sum (UFPLS) option. For Mark and Margaret this is a really positive outcome and highlights how completing a personalised lifetime cashflow for a client is not a one off exercise it is an integral part of their Financial Planning supporting key decisions at turning points in their life. This type of planning doesn t just occur with new clients it s an ongoing evolving financial plan that is important to revisit each year to ensure it is up to date so that when big changes happen the plan can be quickly altered to illustrate the impact this will have on a client s life and ultimately on their security and happiness. Julie Lord Certified and Chartered Financial Planner and Gretchen Betts Certified Financial Planner at Magenta Financial Planning Julie Lord (chief executive - left) and Gretchen Betts (managing director) have recently launched Magenta Financial Planning in Wales but have been working closely together for four years. Their new company focuses on providing clients with friendly and bespoke Financial Planning helping them to build plans for their future security and happiness using lifetime cashflow forecasting. Their small team based in Bridgend South Wales works closely together to provide an approachable personalised and valuable service. Julie Lord julie magentafp.com julielordcfp Gretchen Betts gretchen magentafp.com planning_angel 01656 760670 www.magentafp.com Key point 1 Always explore every option available. In our profession we are led to believe that transfers from DB schemes are almost always unsuitable. While this needs to be dealt with increased care and compliance checks sometimes this can be in the best interest of the client. Key point 2 Your relationship with clients should be strong enough that they would never make a financial decision alone without consulting you first. Key Point 3 Without a lifetime cashflow forecast we would not have been able to accurately advise Mark of the consequences and impact of his available choices and Mark might not have had the confidence to act on our advice without the cashflow evidence. 18 November - December 2016 www.financialplanningtoday.co.uk Put the power of Financial Planning Today website at your fingertips FP Today www.financialplanningtoday.co.uk Constantly updated relevant news stories about the Financial Planning profession Simple and easy to navigate and works on desktops tablets and smartphones Selected content and features from Financial Planning Today magazine Insightful comment and analysis from leading experts Daily e-news alerts to your inbox Best of all it s free to use www.financialplanneronline.co.uk May 2016 19 THE CLIENT HUNTER The Client Hunter The Client Hunter is always looking for new ideas to help Financial Planners reach more clients. This issue he asks Anthony Carty of Clifton Wealth in Bristol how he finds new business for his firm. The Client Hunter How did you get your first clients Anthony Carty The very first client I ever dealt with in the world of financial services was when I joined Pearl Assurance in 1989 having just spent four years in the RAF. It will not come as a huge shock that therefore my first client was an RAF colleague That was a very long time ago. After a number of years working for Pearl London Life Equitable Life Friends Provident and Sedgwicks I joined Clifton Asset Management in 2001. My very first client when joining Clifton was a business owner who ran a dental technician business in Walthamstow he was originally approached via a mailshot. Who has been your longest client and can you tell us more about them AC My longest clients are two chaps who ran a business I first dealt with while at London Life so about 21 years ago. There were significant complications at the time a small DB scheme which needed to be wound up and a complex SSAS arrangement. It was really interesting (yes I am that sad ) and I credit these clients for the path I followed in terms of my leaning towards all things pensions related. What is the key to long term relationships with clients AC Mutual trust and keeping it simple when it s actually quite complicated. What important lessons have you learnt for finding and keeping clients AC Some will say that finding clients is easier than keeping them. I m not so sure these days. There is a lot of competition and (thankfully) increased competence in the planning community. So you need to continue to innovate while at the same time deliver to clients what you originally promised them. Also you can t be all things to all men so ensure that your business model in terms of levels of service and cost reflect your target client ambitions. Mr Carty at his offices we are advising business owners with regards to raising corporate finance and there is some understandable reticence for one business owner to discuss this subject with another and then provide a referral. Approximately 30% of our enquiries (150 per annum) come via professional connection referrals. Are you registered with any directories such as the Money Advice Service or Unbiased or VouchedFor AC We are registered with MAS and we have never received a single enquiry so from our limited experience the return has been questionable. Do you carry out workshops and events AC Yes many Mostly in and around the commercial finance sector. We are a patron of the National Association of Commercial Finance Brokers (NACFB) so we support them at various workshops and national exhibitions. We are also regularly invited to take part in alternative finance conferences either as keynote speakers or panel members not only because of our unique expertise in Pension-led funding but also because we launched and run the Alternative Business Funding portal which provides access to a huge range of alternative business funding solutions for SMEs. How many clients do you see that have never seen a wealth manager or Financial Planner before AC As pretty much all of our clients are business owners they have previously dealt with a Financial Planner of some description in the past. What is the key to securing a new client AC Interesting question. I do not see a huge queue of individuals who wake-up one day thinking I must embark upon my Financial Planning journey who should I talk to The starting point is usually grounded in one specific area I need funding for my business I ve sold my business what do I What tools do you use to generate new client leads AC Our pension-led funding (PLF) offering allows business owners to invest in their companies by utilising funds from existing pensions. The funds invested in the business will be repaid into their pension with interest. A key element in promoting and understanding PLF is our professional introducer network IFAs accountants commercial finance advisers and so on. We have recently launched a dedicated web-based Introducer Portal which allows introducers to refer business directly and quickly ascertain whether or not the referral has potential to use Pension-led funding. A dynamic business tracker shows brokers the status of introduced business and includes information about where in the process their client currently sits. The portal also allows users to update relevant information ask a question and has access to marketing materials that can help with their understanding of the benefits and requirements for Pension-led Funding. What techniques are most successful AC We have six channels for client acquisition. Direct mail web professional connections referrals previously lost opportunities and PR. In terms of conversion ratio historically PR is the most successful with referrals running a close second. We aim for approximately 5% (around 75 per annum) of our inbound enquiries to come via referrals from existing clients. This may seem surprisingly low but for the most part The Client Hunter What are your top 5 tips for finding new clients Tip 1 It is easy to say but doing a great job for existing clients leads to a steady supply of recommendations and referrals. Tip 2 Be where the clients are. In today s digitally-sophisticated world clients value the strength of networking through platforms such as LinkedIn. Tip 3 Getting out and about. I try to do as many seminars and events as possible as they are always fantastic networking opportunities. Tip 4 Keeping up to date with everything to do with my field and writing articles that might help both our referrer network and individual clients. Tip 5 Building the referral network. Visiting as many professional services businesses (IFAs accountants commercial Finance Brokers) as I m able to and talk to them about services we offer. 20 November - December 2016 www.financialplanningtoday.co.uk THE CLIENT HUNTER Anthony Carty Financial Planning director at Clifton Wealth do with the cash or I m going to hang my boots up how do I access my pension . It s then the job of the Financial Planner to look at the bigger picture and join the dots up. In my view this is where value is added and the Financial Planner is hopefully perceived as a more valuable asset than a mere order taker. Cashflow modelling is a classic example of taking a client on an unexpected journey one which they were probably not originally intending to embark upon. Best client Who were they and why AC I can t really comment in any detail here as he is pretty well known and wouldn t appreciate the unintended media attention Suffice to say that this client has considerable wealth that needs managing and all that goes with it tax planning market volatility succession planning and so on. Importantly though he and his family are just down to earth nice people who (hopefully) think the same of me. Worst client Who were they and why AC It s the client who isn t a client You know the chap who gets on the phone to ask your opinion but who wouldn t part with a penny in terms of fee. The self-advised individual who wants reassurance they are doing the right thing. Or not as the case may be. What s the strangest request you ve had AC We have been asked on two separate occasions to help finance an adult toys business. The know your client initial conversations were interesting . How useful has the web been for clients AC Our online communications have taken over from direct mail as the main focus of our marketing campaigns. We have been able to expand our potential audience and use more targeted advertising. Our websites boast healthy visitor numbers and allow us to offer bespoke initiatives to improve our relationships with clients and keep a dialogue with the introducers we work with. Do you use LinkedIn Twitter and Facebook Which is best and why AC We use all three and each have their role to play promoting our business and engaging with potential clients. I believe all three have their strengths and weaknesses depending on the message and the audience you are trying to engage with. We have recently added Facebook advertising to our marketing output with some encouraging initial results. Anthony Carty Clifton Wealth s Financial Planning Director Anthony Carty has over 25 years of experience in the financial services industry. He is a board director of Clifton Asset Management Plc the innovators behind the Pension-led funding brand which provides non-bank finance to SMEs. Pensionledfunding.com is one of the largest providers of alternative funding in the UK (source altfi.com). The Clifton Group of companies also includes Pensioneer Trustees Morgan Lloyd (www.morgan-lloyd.co.uk) and Wealth Management and Employee Benefits business Clifton Wealth Ltd (www.clifton-wealth.com). Recent innovations include the creation of the Alternative Business Funding (ABF) collaboration and site (www.alternativebusinessfunding.co.uk). Outside of work Anthony enjoys spending time with his young family keeping fit and following Bath Rugby Club and QPR. 01275 813700 www.clifton-wealth.com www.financialplanningtoday.co.uk November - December 2016 21 OPINION Going with the cashflow readers engage in debate It has been pleasing to see such a high level of interaction from readers on the recent cashflow modelling debate we ve been covering. In this edition the conversation continues in our News Feature on p11 and 12 examining the arguments for and against and summarising the merits or otherwise as expressed lately by Financial Planners on our website. The topic is also examined in another way through the Planner Casebook feature (p17 and 18) looking at how a Magenta Financial Planning client has been helped with lifetime cashflow forecasts. This debate was initially spurred by former IFP President Julie Lord s initial column in this magazine on the subject and our online poll which showed that 78% of 245 readers taking part believed cashflow modelling was essential to true Financial Planning. This has generated a lot of interest among readers with a number of planners stepping forward to give their views. Former IFP President Campbell Edgar said the merits of various models had been debated ad infinitum down the years at the bar at conferences and events and online. Although the poll result showed a clear and unmistakeable view shared across readers there were clearly some strongly differing views. A lot depends on how you define essential . Even those who have offered a view that it is not do not dispute that it is still very useful and can be an important tool. Nobody seems to doubt that it can be a hugely helpful assistant in the Financial Planning process but some have alternative ideas on whether that means it is truly essential to Financial Planning and Financial Planning cannot be done without. If you have another view we always welcome further contributions. Get in touch by sending us an email to feedback portfoliopublishing.co.uk. Or Tweet FPToday_News To send us your view email Feedback portfoliopublishing.co.uk kevin.odonnell portfoliopublishing.co.uk FPT_Kevin AMPS chair Neil MacGillivray reviews three years at the helm Neil MacGillivray is concerned about so-called pension liberation A fter serving six years on the Association of Member-Directed Pension Schemes (AMPS) committee three as chairman of the leading body for Sipps providers I felt that it was the right time to step down and let someone else take the helm. It has been an enjoyable and rewarding experience but it has also given me some of my greatest challenges. Thankfully things were made a lot easier by great support from fellow committee members. Without doubt the greatest of these encounters was when I was first appointed chairman. AMPS was in the midst of dealing with the proposed changes to capital adequacy. The committee felt that the FCA had completely ignored the arguments against the use of AUA as a basis of calculating capital adequacy and had provided no evidence as to why they felt it was the best solution. This led to AMPS much publicised attempt to try to bring judicial review proceedings against the FCA. Though we were unsuccessful I still feel it was the correct thing to do as it forced the FCA to provide more information than it had previously been prepared to do. If I have one regret it s that I leave when our member firms are currently being challenged by HMRC on relief at source claims where there has been an in-specie contribution. I would have liked to have seen this through to conclusion but I m confident that the committee will do their utmost to try and resolve the matter satisfactorily. As regards the future of the SIPP and SSAS market Financial Planning Today recently asked what I think will be the toughest challenges for the next year for Sipp providers and if I expect to see much more in the way of consolidation. The main concerns have been pension liberation relief at source on in-specie contributions and defending the industry against legal challenges being made by claims management firms. I have confidence that the market will continue to flourish despite no decisive outcome from the Green Paper Strengthening the incentive to save a consultation on pension tax relief . However as we have seen consolidation goes on unabated leaving less consumer choice. There appears still to be a hunger in the industry for acquisitions so I am sure there will be more just not on the scale seen of late. Portfolio Publishing 2016 Subscriptions 01895 678629 Advertising 01895 672771 For more details see page 38 Neil MacGillivray is an Honorary Lifetime Member of AMPS having just stepped down as chairman after three years in the role. He is head of technical support at James Hay. He manages James Hay Partnership s Technical Support Unit of Tax Trust and Pensions specialists and has over 30 years experience in financial services. www.ampsonline.co.uk AMPSonline Neil MacGillivray ex-AMPS chairman 22 November - December 2016 www.financialplanningtoday.co.uk OPINION Financial Planning Today s Email Inbox From Andy James head of retirement planning at Towry Re Pension annuities U-turn The government has announced it has cancelled plans to introduce a secondary annuities market. It was always going to be a difficult market. The purchase of annuities is complex for the buyer and difficult to understand for the seller. Getting the pricing fair required a wide marketplace and this has appeared seemingly unavailable owing to annuity providers being unwilling to enter the market. Based on this the possibility of poor outcomes for sellers was too big a risk for the government to take. The market now doesn t require annuity purchase and therefore this is only an issue for past buyers. Unfortunately they can t change that decision which was always how annuities were sold in the first place. Going forward those with annuities are now stuck with them whether they like it or not. Most will be better off than if they sold them but some would have been able to improve their personal circumstances. However the introduction of a secondary market for annuities was always a train crash waiting to happen so it is not a huge shock that this idea has been scrapped and I think this is the right decision. From Gary Smith associate director at Tilney Financial Planning Re Pension annuities U-turn No doubt the concept of the second hand annuity market was a good one allow pensioners to sell the pittance they receive each month year that perhaps makes little difference to their standard of living for a lump sum which could be put to better use. Give the pensioner a choice to recompense for the failings of the legacy pension industry and make up for the constructive enforcement of buying an unwanted annuity when they entered into retirement. It wasn t long however for those in the industry to question the mechanics of such a policy for once in a long time it seems common sense has prevailed. Rather than continuing to blindly follow an ill-fated policy for fear of acknowledging defeat (and the subsequent reprisal) the Prime Minister and her Chancellor have used the recent shake-up in the cabinet as a get-out-of-jail-free card. While I understand the frustrations of those who planned to get their hands on their rolled up annuity income it would never have been as good as they had envisioned. It was guaranteed that discontented pensioners would have been left with no income and much less cash than they d hoped. From David Hetherton CEO of Walker Crips Wealth Management Re Plans to enable savers to use 500 from pensions for retirement advice The Pensions Advice Allowance is a big step in the right direction which will encourage savers to consider taking valuable financial advice on their retirement strategy. While the 500 allowance is an important recognition of the value of financial advice it may also create misconceptions. The fee is not necessarily sufficient to cover the cost of financial advice that many clients require. Additionally advisers must now assess a much wider range of options following the introduction of pension flexibilities and consider more complex strategies such as intergenerational wealth planning. It is unlikely that the 500 allowance will purchase fully rounded advice which dovetails holistically with clients other financial requirements. We applaud the introduction of the Pensions Advice Allowance but believe there should be a tiered system relating to the size of the pension pot and the complexity of the financial advice required. This will give clients a more realistic expectation of the cost of the financial advice they may need to meaningfully inform their retirement strategy. 25 years of banging the drum is paying off Julie Lord of Magenta Financial Planning T he beginning of October found me - as usual for the last 25 years or so - at the IFP (now CISI) Annual Conference at Celtic Manor in Wales. The Law of Diminishing Returns states that one will learn less and less and even though that will prove to be the case for many of us oldies there are still a few precious nuggets of information to be taken away every year to enhance our client experience and improve our businesses. This year being the first conference since the IFP CISI merger I was struck by the large number of new faces - particularly those under 30. This is great news for the profession. As long as we can teach these newbies well we can look forward to having a more robust and in-demand profession in the future. The hunger for Financial Planning knowledge within the CISI indicates that the integration is going well. No merger is without its hiccoughs but the investment being made by the CISI to grow the number of planners and Paraplanners in the UK is impressive. The new Paraplanner Interest Group and the recently re-elected IFP Professional Forum are made up of committed individuals (of which I am one) engaged to help with this important strategy. I m delighted to see that interest in the profession overall continues to grow. Over 82% of IFP members have renewed their membership with the CISI and I suspect that the fence sitters will return to the fold when they fully understand the commitment to the development of their profession. Other good news is that the CISI has had twice the flow of candidates applying for and taking the CFP certification compared to a year ago joining over 160 000 CFP professionals around the world. All in all it seems that things are moving forward very positively and it is great to hear that the IFP Professional Forum will continue to influence the direction of travel. Now that the PFS and other bodies including the FCA are starting to understand proper Financial Planning it looks as if my banging on about it for the last 25 years might just have been worthwhile Julie Lord CFPTM Chartered FCSI Julie is a Chartered Wealth Manager Chartered and Certified Financial Planner at Magenta FP Wales and director at Prestwood. She is an ex-IFP President. JulieL broadwayfp.co.uk www.broadwayfp.co.uk 01656 760670 julielordcfp www.financialplanningtoday.co.uk November - December 2016 23 NOW S THE TIME FOR In today s uncertain world guaranteed solutions play a valuable part in your clients portfolios. For more intelligent investing isn t it time for a fresh look at our range of guaranteed Retirement and Investment solutions Discover more at www.metlife.co.uk certainty ENTER A MORE CERTAIN WORLD Products and services are offered by MetLife Europe d.a.c. which is an affiliate of MetLife Inc. and operates under the MetLife brand. MetLife Europe d.a.c. is a private company limited by shares and is registered in Ireland under company number 415123. Registered office at 20 on Hatch Lower Hatch Street Dublin 2 Ireland. UK branch office at One Canada Square Canary Wharf London E14 5AA. Branch registration number BR008866. MetLife Europe d.a.c. (trading as MetLife) is authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Details about the extent of our regulation by the FCA and PRA are available from us on request. www.metlife.co.uk 2016 PNTS INSIDE MY BUSINESS COLIN LAWSON - EQUILIBRIUM Colin Lawson of Equilibrium My firm started in a bedroom Now we have 600m of assets Colin Lawson founder and partner at Chartered Financial Planning firm Equilibrium Asset Management in Cheshire explains how he has built the company from a one man operation in his bedroom to 60 staff. FP Today When did you start your firm and who started it Colin Lawson I set up the business from my own back bedroom in 1995 so it s a big year for us this year as we re celebrating 21 years in business. Since the very early days things have changed immeasurably as I m sure you can imagine. The business has grown massively and we now employ 60 staff and manage a touch under 600 million worth of assets for more than 850 families across the UK. Even the name of the business has changed we were originally called Applewood Financial and now of course we re Equilibrium Asset Management. How did you get into Financial Planning and what attracted you to the profession CL When I left school it was with just one O-level and my first move was to join the Automobile Association s youth training scheme. I knew that I d always had a head for numbers so from there I moved to Norwich Union where I became a trainee consultant and then to Britannia Life where I spent four years as a broker consultant. I always felt the world of investment was dominated by old-fashioned and outdated practices so I wanted to set up my own business and forge my own path that didn t fit this description something exciting and with a bit of entrepreneurial flair. What sort of a company is it and what services does it offer Does it specialise in particular clients or services CL We re a specialist wealth management company and our main focus is to ensure our clients are successful with their investments throughout their lifetime. We advise on wealth and investment planning and also on pensions and inheritance tax strategies too. Our focus is very much on being a friendly expert client relationships are incredibly important to build a personal relationship where clients view us as a trusted adviser. How many clients do you have and what s the annual turnover CL We have 850 clients and our turnover for the past financial year is circa 6m an increase in turnover of 20 per cent on last year. In fact the past 12 months have been the most successful in our history we ve had to expand our Chester office thanks to increased demand. We ve also been able to increase our team by 20 per cent. In terms of our growth goals our current efforts are framed within a three-year plan Continued on page 26 Colin Lawson s business day 09.00 Check emails and set up for the day. 10.00 Focus time and brainstorming whether it s looking into new ideas for our marketing planning a presentation or working through my to-do list. 11.00 Col s Clinic an hour or so for anyone who needs to see me to come have a chat. 12.00 Meetings either internal or client facing. 16.00 Check-in with Gaynor Rigby our managing partner about the day to day running of the business. 17.00 Time to head home or sometimes to an event could be a client investment dinner award evening or networking or a bike ride www.financialplanningtoday.co.uk November - December 2016 25 INSIDE MY BUSINESS COLIN LAWSON - EQUILIBRIUM Continued from page 25 where we will be looking to grow turnover by 20 per cent each year with a target of 10m by 2019 and close to 1bn in assets under management. How many Financial Planners and Paraplanners do you have Do you have plans to expand and recruit more and if so how many CL Currently we have 33 Paraplanners supporting six advisers. Ideally we re looking at 12 new team members to facilitate growth hiring at least one new client manager per quarter to support our growth plans. One of the new roles we created last year was the post of head of training and development to help develop our teams with a keen eye on helping provide graduates in our two-year graduate scheme with the support they need. I m a firm believer that culture is key to a business success so we ve also introduced the role of head of culture . The role is there to ensure our HR and recruitment needs are being met and also that all our staff feel that they are working in an environment they enjoy and that allows them to perform to the best of their ability. What has been your greatest source of achievement so far in running your business - and what has been the biggest hurdle to overcome for you personally CL From a business perspective the biggest challenge we ve faced is dealing with two major market crashes within the space of a decade not exactly the ideal environment for smooth financial sailing. Growing as a business and protecting our clients assets throughout that period is probably the business biggest achievement. On a personal basis the gamble to go ahead and actually build a successful firm has been a constant challenge. When I first started I d never run a business and I d never had clients so that was a big hurdle to overcome at the outset. FPT What tips would you pass on to other planners CL Do regular blue sky thinking think big Delegate - so you can focus on your unique ability. Effective marketing so you can constantly grow. One of the first pieces of advice I received was to hold three seminars to attract new business. This was a really important piece of advice because many people hold that first seminar see that it doesn t go very well and then get put off from holding the second and third seminars where the successes start to come. Take time off. It is better to be there 70% of the time with 100% energy than be there 100% of the time with 70% energy. More generally say please and thank you and do what you say you are going to (and on time). What is the biggest challenge for you in terms of the FCA and regulation CL Generally speaking I believe the FCA is doing a good job given the challenges they face. In particular we welcomed the introduction of the RDR in 2012 one of the biggest reform programmes the UK financial services had seen for many years. In future I d like to see greater consideration of what happens with the fines the FCA imposes. Currently these go to the FCA or Treasury but they could be used to improve the industry to help fund the FSCS for example. I d also like to see a shift in the way the FCA approaches file reviews from focussing on a transactional basis to looking at the whole relationship with a client. There has been a big debate lately about cashflow modelling and Financial Planning. An FP Today poll found 78% agreed that it was essential to true Financial Planning. Do you agree CL Yes. We re very much of the view that cashflow modelling is pretty essential to the whole concept of Financial Planning. For us it s important when putting a financial plan in place to look at a client s starting point potential goals and to work out the rate of growth required to take a client from their current situation to what they are looking to achieve. There s also the matter of time horizons too how quickly do clients need returns to achieve their goals and how does this impact to their attitude to risk Cashflow modelling has a big part to play in providing a clear plan which an adviser can sit down and walk a client through - something that s especially important when you re offering bespoke services with personally tailored plans. We use Voyant software for our cashflow modelling and this allows us to change variables to account for choices a client might make such as the decision to buy a new car. It s important to be able to demonstrate potential future scenarios to clients. For us cashflow modelling is integral to this process so in some ways yes and I am surprised that the percentage of Financial Planners who agreed that cashflow modelling was essential wasn t higher in the poll. How much did your FSCS levy rise this year CL Our levy didn t rise too much this year it was just 5k. The year before though it was a big rise 50k and the year before it increased 28k. However in general the level of fees has remained relatively consistent as a percentage of turnover averaging between 2-3% over the last five years. What do you think the key is to making more of the general public aware of the benefits of managing their finances through a Financial Planner and making this easier to understand CL Financial Planning is about more than just making investment choices. It s about a trusted adviser sitting down with a client to talk about their aspirations and making a plan to try and ensure that these aspirations can be met. Setting objectives and then devising a plan to meet them. Framing the discussion in this way is the best way to explain to members of the public what Financial Planners can do for them. We also introduced a new digital marketing strategy in 2014 with the launch of a new website and the introduction of a social media strategy. We regularly produce guides and topical blogs and try to reach a wider audience through sharing them on social media. We also hold seminars in multiple locations to educate and inform our community and improve public perception. What do you like doing in your spare time outside of work Do you have any unusual hobbies CL I love hobbies that require 100% focus. I am a regular track-day attendee at Oulton Park (a motor racing track in Cheshire) and love sailing and skiing. It s sensible to stay focused when moving at speed whatever the method I also really enjoy spending time with my family too it s vital to have that time away from work. Colin Lawson founder and partner at Equilibrium Asset Management Colin Lawson is founder and partner at Equilibrium Asset Management. The firm is currently celebrating its 21st year in business. Leaving school with one O-level Colin worked at Norwich Union and Britainnia Life before deciding to set up his own Financial Planning firm from his back bedroom in 1995. Since that time Colin has built a business which now consists of more than 60 staff and manages close to 600m worth of assets for 850 families across the UK. 0161 486 2250 Key point 1 If you want to be successful you have to build a team that supports you in the office and at home. ColinLawsonEQ http eqllp.co.uk Key point 2 Sometimes those with more experience really do know best. You can never do it all on your own so be ready to accept and even ask for help whenever you need to. Key Point 3 If you are looking for inspiration go to the pub 26 November - December 2016 www.financialplanningtoday.co.uk Constant change in the platform market can be a headache for your business but with Transact you can rely on exceptional service from a sustainable platform. We work exclusively with advisers We only operate in the UK We adhere to our responsible pricing strategy reducing our charges without affecting our service This approach means we can continue to support UK advisers and their clients for the long term. No.1 UK platform (CoreData Investment Platform Study 2015). Excellent pro tability rating (FinalytiQ Platform Pro tability Guide 2015). salessupport integrafin.co.uk 020 7608 5350 www.transact-online.co.uk This advertisement is for use by professional advisers only. Unless stated otherwise any opinions expressed are our own or based on our interpretation of relevant rules and regulation in the UK. The content is for information purposes only and does not and is not intended to constitute professional advice. Transact is operated by Integrated Financial Arrangements Ltd. Registered of ce 29 Clement s Lane London EC4N 7AE. Registered in England and Wales under number 3727592. Authorised and regulated by the Financial Conduct Authority (entered on the Financial Services Register under number 190856). (M122). INVESTMENT PLANNING Brexit is set to dominate the political and economic landscape in 2017 with consequences for investments and the markets Frederic Legrand - COMEO Shutterstock.com Investment Planning More Brexit on the menu for 2017 Global events as ever provide a canvas of uncertainty for investors in 2017 with continuing conflicts terrorism a new US President and the long running Brexit saga making a mark not only on the geopolitical and human level but on economic matters and markets too. James Nadal asks leading experts for their insights. ot many were predicting that Britain would vote to leave the EU in 2016 nor that Donald Trump would win the Presidential race in the US. Yet both happened. Is it any wonder then that the markets are full of uncertainty perhaps more than ever With a series of earth shattering unlikely events coming to pass what else is in store for 2017 The menu looks unlikely to change with Brexit for breakfast lunch and dinner. The EU referendum result was only the beginning of that story and doubts over the exact nature of the UK s future relationship with its European cousins still linger strong with so many questions unanswered particularly for the economy and financial services. Will the continued effect of Brexit see more plunges for the pound The ripple effects will surely continue well into this Parliamentary cycle which itself could be disrupted by the calling of a Brexit-linked General Election if the Article 50 row escalates and results in Theresa May needing a fresh mandate from the people. Equally the new US President may have been elected but it s only when we get to 2017 that we ll see what the true effect of that will be. N What policies are coming that could have the markets swaying and shaking And of course another long running story the growing threat of the so-called Islamic State terrorist group lurks in the background. Debbie Kay private client partner at Thomas Miller Investment sees opportunities not just problems. She said The uncertainty that the UK investor faces following Brexit the devaluation of Sterling the expected rise in US interest rates at some point (followed by the UK) may all still provide potential investment opportunities. Over the next few years diversification will remain crucial to investment planning. For those investing for the medium term the strategy adopted needs greater care as preservation of capital will also remain a high priority. If the expectation of many analysts for the next year comes to fruition - low growth low yield and continuing low inflation - then seeking performance over the medium term will be a challenge. Reacting quickly to political and economic changes will be key to investment success. Angus Branfield executive director at EQ Investors said After the initial shock caused by the decision to leave the EU we now believe that UK commercial property offers an attractive income when compared to other asset classes. While we exited the sector in June we are now rebuilding small positions. Frank Potaczek senior vice president (DFM & Funds) Defaqto Chartered FCSI Chartered Wealth Manager said looser fiscal policy from governments could be on the horizon using printed money for more infrastructure spend better tax levels for consumers and expanding the public sector. He said the investments scene was a potentially dark canvas with little real signposting from economic and political policy . He said The message from most active managers is that they will look to manage monies more dynamically and opportunistically in this environment. The current sell off in bond markets although not being seen as the Big One is a tremor that provides an entry point for cash buyers as inflationary expectations rise for CPI in 2017 certainly in the UK because of imported inflation due to Sterling weakness. Sterling weakness is expected again once Article 50 is triggered. Read on to see what the experts think 28 November - December 2016 www.financialplanningtoday.co.uk INVESTMENT PLANNING Financial Planners share their views on President-Elect Trump as he triumphs in Presidential battle Donald Trump s triumph in the US Presidential race shocked the world. But what did Financial Planners think about it and what it could mean for clients investments Some said it could be good for American markets and growth but that there are uncertain times ahead. Chartered Financial Planner Martin Bamford FPFS CFPTM Chartered MCSI managing director of Informed Choice said This doesn t feel at all like Brexit to me from the perspective of UK investors. Those drawing comparisons between the two are making a political point rather than any sensible market commentary. A Trump presidency with all of the checks and measures afforded by the US political system could be a good thing for US and global growth. Only time will tell and no Financial Planner has a crystal ball in this respect. Former IFP President Marlene Outrim CFPTM Chartered FCSI managing director of Uniq said Initially the markets have acted negatively but that was seen with Brexit as well and since then the markets have taken a turn for the better. However how that will all pan out in the long term is yet to be seen but certainly we are in for uncertain times. Chartered Financial Planner Gemma Siddle FPFS APP CFPTM director of client services at Eldon Financial Planning said All our clients have sufficient cash so that they can afford to ride out market fluctuations without having their lifestyles affected. We don t expect any client enquiries as a direct result of market volatility. chrisdorney Shutterstock.com We had very few regarding Brexit and not one of our clients considered selling as a result of the volatility in the immediate aftermath given the above why would they Chartered Financial Planner and Paraplanner Joanna Hague CFPTM Chartered MCSI at Investment for Life said Our clients have faith in the process we are following so they rarely contact us when something like this happens. We do still get calls - but they are about other concerns like state pension top ups pension scheme administration and reducing interest rates. It s business as usual here. Mr Trump will be handed the Presidential reins officially in January. Focusing on benefits of the weak pound Angus Branfield executive director at EQ Investors After the initial shock caused by the decision to leave the EU we now believe that UK commercial property offers an attractive income when compared to other asset classes. While we exited the sector in June we are now rebuilding small positions. The Brexit vote has added additional uncertainty in Europe while in Japan we are yet to see any material change. Elsewhere in Asia we see a region offering attractive opportunities and the strongest growth outlook within emerging markets. Valuations are relatively cheap versus history. Sterling investors buying foreign assets have benefited from the fall in the value of sterling provided they opted for unhedged funds as we have in 2016. We do not expect this to change in the short term but will be watching carefully. We are wary of the negative impact on UK consumers and their consumption habits. Our focus is on larger companies that are less sensitive to the UK and can benefit from the weaker pound. The return available from bonds and their risks mean we see them as expensive so are underweight. As a defensive alternative we prefer directional trading strategies and more defensive market neutral equity managers. In North America we view much of the market as overpriced. However consumption continues to be strong and the dollar offers downside protection in stressed markets. The result of the Presidential election we feel in the medium term will have a limited impact and the power balance in the Senate and House of Representatives is of greater significance. Financial Planners at EQ have at their disposal expert technical consultants plus a highly skilled investment research team which sets our asset allocation strategy and undertakes due diligence on open and closed ended funds. Overall we are cautious about the short term outlook for equities due to relatively high valuations and increased political risks. Tactically our cash allocation is high to reflect our more cautious stance. If we see market dips we will review this strategy. As a defensive alternative we prefer directional trading strategies and more defensive market neutral equity managers. Angus Branfield www.financialplanningtoday.co.uk November - December 2016 29 INVESTMENT PLANNING Geopolitical risks may escalate further Frank Potaczek senior vice president (DFM & Funds) Defaqto Chartered FCSI Chartered Wealth Manager Once upon a time Swiss banks would tell you that if you want to eat well buy equities but if you want to sleep well buy bonds. So when a fund manager tells you in the fourth quarter of 2016 that if you want income buy equities and if you want capital growth buy bonds you know that things aren t as they are supposed to be and we re no longer in Kansas What is the outlook for 2017 Before looking at the background to markets and highlighting potential areas to asset allocate it should be remembered that investments in the Financial Planning world is a much more personal affair with differing strategies between accumulating wealth and decumulating it capital appreciation and preservation fixed income streams and variable ones. Investment planning is first and foremost about achieving a particular outcome. Looking at the current investment environment we can see that primarily geopolitical risk in 2016 has been dialled up considerably with hot conflicts in Iraq and Syria having the potential to escalate. Or does the sight on news channels of a Russian aircraft carrier group sailing through the English Channel signal the possibility of a new Cold War Political risk remains high in the UK and Europe for example while Brexit plans are formulated and elections in France Germany and Europe are held. Together with elections in Iran Saudi forces in Yemen the consolidation of presidential power in China and uncertainty over the direction of the US following Donald Trump s victory this will all make political risk likely to be the main contributor to market volatility in 2017 Indeed the economic background has been dominated by late cycle American growth and early cycle emerging markets growth with China still growing albeit at a reduced rate to its long term trend. Central banks in the developed markets remain committed to easy monetary policy more bond buying in spite of many now questioning its effectiveness in stimulating sustainable economic growth. This may well mean we now see looser fiscal policy from governments - using printed money for more infrastructure spend better tax levels for consumers and growing spending in the public sector. How do we set future expectations for clients Looking at the McKinsey Global Institute report Diminishing Returns why investors may need to lower their Does the sight of a expectations published in May this year Russian aircraft it suggested that the investment period carrier group sailing from 1988 to 2015 provided above average returns because of a number of special through the English factors. These returns are unlikely to be Channel signal the repeated over the next 20 years. Defaqto s own stochastic model suggests that an possibility of a new expected return for a balanced portfolio Cold War would be 5.25% before inflation and Frank Potaczek charges with an implied volatility of just over 10% annualised. Reacting fast is key to investment success Debbie Kay private client partner at Thomas Miller Investment We are continually reminded that over the longer term equity investment has outperformed all other asset classes and it is this continuing belief that encourages investors to look for returns beyond cash. In this context longer term tends to mean over 10 years. Over the next few years diversification will remain crucial to investment planning in addition to taking bold decisions on portfolio changes depending on global and UK markets. The uncertainty that the UK investor faces following Brexit the devaluation of Sterling the outcome of the US elections the expected rise in US interest rates at some point (followed by the UK) may all still provide potential investment opportunities. For those investing for the medium term the strategy adopted needs greater care as preservation of capital will also remain a high priority. If the expectation of many analysts for the next year comes to fruition - low growth low yield and continuing low inflation - then seeking performance over the medium term will be a challenge. With UK equities offering uncertain returns investors are fleeing to global markets and alternative asset classes such as infrastructure leasing property gold and absolute returns as a kind of substitute for the fixed income sector and UK equities. Gilts have unexpectedly produced some stunning returns over the past few years for example and those that invested 30 November - December 2016 www.financialplanningtoday.co.uk at the right time would have benefited greatly from this asset class. However the level of returns is unlikely to continue and at what stage investors start exiting from this asset class will require care and where to invest next will also require careful consideration. In addition to asset diversification and a flexible investment strategy over the next few years it will be vital that clients have a sufficient amount held in cash to meet any income or capital requirements so that they do not have to be reliant on withdrawing funds from their investment pot should markets take an unexpected fall. The benefits of ceasing withdrawals from a deflated pot are likely to significantly outweigh the potential return that could be achieved from investing excess Over the next few cash that is set aside for this purpose. years diversification Reacting quickly to political and will remain crucial economic changes will be key to investment success and use of active to investment discretionary services may benefit those planning. investors lacking the time or inclination to constantly review their portfolios and Debbie Kay make changes as required. SOCIAL MEDIA SKILLS How social media can win new clients for planners Many if not most planners have a social media presence these days though some still retain a sceptical attitude to its value. So how can planners gain some valuable benefits from it James Nadal reports. f you post about irrelevant garbage or what you re eating for dinner then social media isn t going to win you new clients. But it can do just that if you re sending out the right content social media gurus have told Financial Planning Today. US Financial Planner Michael Kitces who has 32 600 Twitter followers said social media is a means for sharing blog content demonstrating expertise and making it seen by potential clients. He said Social media is not an end point unto itself and you re not going to get very much business directly from just social media itself. His social media activity was not to get clients directly but simply to get people to his blog and website where he could demonstrate his expertise and let that turn them into prospective clients with whom he can do business. His blog has grown so visible that now it does lead to prospective new clients to the firm he explained. Staying focused on a niche is crucial he said explaining One of the surprising synergies I ve also found of I Social media platforms are now used widely blogging and social media within a niche is that you can develop such a strong reputation in the niche that eventually the traditional industry and or consumer media seeks you out as a recognised expert. These days I field upwards of half a dozen media inquiries per week visibility that might have cost thousands of dollars a month or more for a PR firm on retainer and it comes entirely passively on my part as a by-product of blogging and social media. Simply put it turns out that your target clientele aren t the only ones searching for experts the reporters and editors and producers of traditional media are looking too Jeff Lunn who guides advisers in the US on their social media said the biggest benefit from using it well is generating new potential clients leads. He said Social media simply gives you the ability to reach an audience that has never before been available to financial advisers. If you publish irrelevant garbage on social media you are absolutely right that it is a waste of your time. But if you use it to deliver valuable educational content and then back it up with a relevant call to action then social media can represent the biggest opportunity to grow your business out there today. He said Your social media content should always start with education but it should end with a call to action. A good call to action Continued on page 32 Jeff Lunn Tips from America What is the best social media platform for planners to boost awareness of their firms and potentially attract new clients In my experience Facebook is by far the best social media platform for financial advisers to boost awareness of their business and attract new clients. There are other social media platforms that are worth utilising such as Twitter LinkedIn and even a WordPress blog. But no other social media platform offers the same access to actively engaged users or the same ability to target an audience with specific relevant messages as Facebook. What are the trends for advisers in the US in how they use social media and what they find effective The biggest trend in social media now is live video. In 2014 Mark Zuckerberg was quoted as saying In five years most of Facebook will be video . It is easy to see why he said that now. In a call to investors Zuckerberg reported that daily video views on Facebook doubled to 8 billion in 2015. It also seems that live video is preferred over pre-recorded video on the platform. The latest numbers show that people spend three times longer watching live video compared to pre-recorded video on their platform. This trend offers a huge opportunity for financial advisers. Although traditionally laggards in social media financial advisers already have the skill set necessary to make compelling live presentations. Live educational events (seminars) have always been the best way for financial advisers to generate leads and convert those leads into clients. Now advisers can capitalise on this trend by re-purposing their most effective seminars into compelling live videos and webinars hosted on social media platforms. I have done this with my own clients and the results have been very encouraging so far. What are the key lessons that can be learned by UK advisers Whether you are posting on Facebook Twitter LinkedIn or your own blog you should always focus on delivering valuable educational content to your intended audience. Think about some of the most common questions you receive from some of your best clients and then write out thoughtful answers to those questions. The content you create by doing this will likely generate the best reaction from your intended audience when you publish it on social media. Jeff Lunn social media consultant to US financial advisers Jeff Lunn is the founder of Next Stage Web a USA web consultancy focused on helping clients in the financial services industry. Located just outside of Atlanta Georgia Jeff and his team help deliver effective digital marketing campaigns to financial adviser clients throughout the world. NextStageWeb.com www.financialplanningtoday.co.uk November - December 2016 31 SOCIAL MEDIA SKILLS Jodie Cook Twitter is planners perfect arena What is the best social media platform for planners to boost awareness of their businesses and attract new clients If I had to pick one for Financial Planners it would be Twitter. Facebook has strangled the organic reach of business pages so you pretty much have to put cash into boosting your page and posts. Unless you have fantastic original content and a way of capturing data Facebook is unlikely to offer ROI in this sector. Personal pages can be used to stay in touch with existing contacts but it s not ideal for generating new leads. We ve run dozens of LinkedIn lead-generation campaigns incredibly successfully and if you know the typical job titles that your clients have it s a great place to start. However Twitter provides the opportunity to build brand awareness generate traffic to your website and reach out to potential clients. The public nature of Twitter makes it the only true social network for businesses. I know that many people are intimidated by Twitter for precisely this reason but with some expertise it s the perfect arena to achieve a range of marketing goals. What s the top benefit for planners from using social media well Driving people to their website boosting awareness of Financial Planning and gaining potential clients are all benefits to be gleaned from effective social media use but it is imperative that the main goal is identified from the start. This goal and the key performance metrics should shape the social strategy and measure its impact and success. What social media tools should planners look at using to boost efficiency Buffer is an excellent choice and the platform we manage most of our clients content from. A tool like Buffer helps you save time by scheduling content in one go and help maintain consistency something incredibly important when it comes to building an audience. These tools usually provide useful analytics and insights to your content which helps you adapt your content. It also allows you to re-buffer any past tweets and posts that have been of interest to your audience to amplify the message further. Jodie Cook founder of specialist social media agency JC Social Media Jodie Cook founded JC Social Media a specialist social media agency in Birmingham in 2011. She works with clients from independent restaurants to a global automotive brand and everything in between. JC has extensive experience in the professional services sector having worked with solicitors Financial Planners and accountants. www.jcsocialmedia.com Continued from page 31 can just be a sentence or two encouraging the person viewing your content to download a guide sign up for your next live webinar or seminar event or to reach out to you to book an appointment. No matter what your call to action needs to focus on generating leads for your business. Because without it you will be missing out on the biggest benefit of using social media in the first place. Social media consultant Jodie Cook said effective social media can bring people to a website boosting awareness of Financial Planning and win over potential clients. She said Social media for professional service providers is all about building trust and credibility. Sharing valuable information as well as demonstrating a human side to the business can help grow their social sphere of influence helping to both raise brand awareness and generate leads. But she stressed it is imperative that the main goal is identified from the start and it has to be relevant. She said Tweeting about what you re eating for dinner is not going to win you new clients but social media is so much more complex. We can target people based on all kinds of information and reach out on an individual basis. Whether you re a B2B or B2C business virtually every business is P2P that s person to person. No matter how corporate your business may be you are still building relationships with people through people. If you re one to say we get all our business through referral and word-of-mouth social media is the 21st century s equivalent. She said This goal and the key performance metrics should shape the social strategy and measure its impact and success. For example becoming an authority on the subject is incredibly important but it should have some metrics associated with it. If leads are the goal activity on LinkedIn must be geared up to reaching prospects and engaging them with InMail messages. For more advice from Mr Kitces see his blog here. The 6 Dos and Don ts of Social Media 3 Dos from Jodie Cook 1) Show some personality. Look to strike a balance between professionalism and being personable and approachable. 2) Share information that is relevant and engaging to your audience. Demonstrating that you understand what resonates with individuals is the fastest way to build their trust. 3) Adapt to your audience. Shift your focus based on what works and what doesn t. Social media requires both proactivity and reactivity when it comes to optimising your approach. 3 Dos from Jeff Lunn 1) Start with delivering valuable educational content to your ideal audience. 2) Always have a specific call to action that focuses on generating leads for your business. 3) Keep your message consistent across all platforms. 3 Don ts from Jodie Cook 1) Don t leave all your social media until a quiet Friday afternoon. No one is online and no one is going to take the action you need to generate leads. 2) Don t try and cover all your bases and post on six or seven social networks. Focus your efforts on two or three channels the ones you re seeing the most benefit from. 3) Don t be too sales-y in your language. Platforms like Facebook and Twitter are usually regarded as someone s personal space and few welcome pushy messages especially if they re not well targeted. Always attempt to add value to your audience somehow. 3 Don ts from Jeff Lunn 1) Don t forget about the other social media platforms like LinkedIn Twitter YouTube your WordPress blog or email newsletter when posting content. 2) Don t publish content that is irrelevant to what you do. 3) Don t be intimidated by using live video. You already have the tools necessary to use live video in social media successfully. 32 November - December 2016 www.financialplanningtoday.co.uk INVESTMENT INSIDER Philanthropy is alive and well and emerging in impact investing Emerging High Net Worth investment trends in the family office industry Impact investing is becoming increasingly popular globally with a shift towards a much more hands on approach to investment. David Reed of Progeny Corporate Law examines why. T he factors driving new trends in the investment landscape for High Net Worth individuals are many faceted ranging across changes in the demographics of HNWIs to global economic forces and a shift of emphasis in the services offered by the Family Office industry. A new generation of HNWIs is seeking to make investments which do more than simply increase their wealth. Impact investing is the phrase often used for this type of activity and it s growing popularity creates both an opportunity and a challenge for the Family Office industry. HNWIs becoming involved in philanthropic activity is hardly new. What has changed is the degree of involvement which HNWIs are increasingly seeking to enjoy. In some ways the concept of impact investing is a shift which marks a much more hands on approach to investment and in somewhat simple terms a determination to use wealth in order to make a difference for the better . The complexity of the products on offer a lack of understanding and a lack of specialist advice are all put forward as barriers that could hinder involvement in impact investment. Impact investment must be treated with the same rigour as any other kind of investment by Family Offices with particular reference to gathering data on the intended social impact of the investment. Those that don t develop the means to make such measurements are likely to find themselves being left behind. A set of agreed and measurable metrics to define whether an investment is reaping dividends will need to become a standard part of the Family Office repertoire. A 2014 WEF report on Impact Investing showed the amount of wealth due to be inherited by the Millennial generation over the next 40 years could be about 41 trillion. An estimated 98% of those inheriting that wealth will switch to a new set of advisers while a separate 2014 survey found that almost 30% of Millennials believe the top priority of any business should be to improve society. For the Family Office industry figures such as these paint a picture of a significant future market. All of these factors indicate that impact investing is not only here to stay but has only really just begun to take root. David Reed client relationship manager Progeny Corporate Law David Reed is a client relationship manager at Progeny Corporate Law. He has over 27 years of experience supporting businesses across a range of sectors with all aspects of their activities. David has extensive experience in all the principal challenges faced by business owners. At both a strategic and day-to-day level David advises the board and key decision makers on issues that they are likely to face. Progeny Corporate Law provides specialist legal support and strategic advice to businesses across a range of services. www.progenycorporatelaw.com www.financialplanningtoday.co.uk November - December 2016 33 INVESTMENT INSIDER Revealed highest yielding investment company sectors WMA forum was held at RBS Annabel Brodie-Smith WMA hosts Women in Wealth Forum The Wealth Management Association hosted its Women in Wealth Forum at the Royal Bank of Scotland headquarters in London in October with delegates from across the industry. The WMA welcomed Lady Barbara Judge chairman of the Institute of Directors as the keynote speaker. She talked about her career and the experiences hurdles and challenges she faced as a working woman. financialplanningtoday.co.uk The highest yielding investment company sectors have been unveiled with the debt sector coming out on top. The Association of Investment Companies published a list of those yielding over 3% at the end of September. The debt sector was the highest yielding sector with an average yield of 6.9%. And while income focused specialist sectors have historically traded on premiums in recent years this sector was on a discount of -3.5%. In contrast the Sector Specialist Leasing sector the second highest yielding sector with an average dividend of 6.1% is on a premium of 17.1%. Annabel Brodie-Smith AIC communications director said Investor appetite for income remains strong in this low interest rate environment and this is reflected by a number of higher yielding financialplanningtoday.co.uk specialist sectors trading on premiums. The problems in the open-ended property sector this summer also highlight that the investment company closed-ended structure works well for illiquid assets which can offer a higher level of income such as commercial property and infrastructure. But investors should be aware that sentiment can change and that income from investment companies is not guaranteed. Investors should not buy on the basis of the headline yield alone. Heading for the Brexit door Brexit blue touch paper lit now what happens Investment firm appoints new European sales chief BNY Mellon Investment Management has boosted its distribution team with a new senior hire. Olivier Cassin takes the role of head of institutional distribution Europe. Mr Cassin will lead and manage BNY Mellon Investment Management s European Institutional Sales team and is responsible for developing relationships and business from institutional clients. He will lead the institutional team based in London and across Europe. financialplanningtoday.co.uk I 33% of sector has under 50 portfolio holdings A third of investment companies in the equity sectors have 50 or fewer companies in their portfolio the Association of Investment Companies has reported. This equated to 57 out of 174 companies. The sectors with the highest proportion of investment companies with concentrated portfolios were in the most retail-focused sectors such as UK Equity Income where over two fifths had concentrated portfolios of under 50 holdings. financialplanningtoday.co.uk f Brexit lit a blue touch paper UK plc is starting to peer out from behind a tree wondering whether the economy will explode or not. So far the silence is deafening and the explosive reaction to a leave vote which included a feared 18% fall in house prices has yet to materialise. Opinions on the Bank of England s speedy action to cut interest rates and extend bond buying vary from unnecessary and premature to essential. Whether right or not savers have seen rates cut further yes it was possible and defined benefit schemes have seen their deficits rocket. The initial 500 or so point fall in the FTSE 100 on the 24 June quickly recovered as companies with overseas earnings perked up as sterling fell. The losers include the banks who could easily lose passporting of services to the EU as well as reduced margins from lower interest rates. Housebuilders especially those with a key London base also saw heavy losses in a market already dampening at the top end due to tax changes. The FTSE 250 hit harder than its bigger brother due to the weight of domestic exposure has also recovered and hit new highs. So where does this leave the Financial Planner and investment advice to clients Well in exactly the same place they were before (and after) every So far the silence is macro-event the market has ever been distracted by. Planners need to deafening and the set realistic expectations and assumptions and then adjust plans based explosive reaction to on results. Investors need to understand and be comfortable with the amount of risk they need to take to achieve their objectives. Once a leave vote...has yet decided and agreed the longer term risk assets need to be invested and to materialise. stay invested regardless of the headline on the News at Ten. Market timing adds risk. Buying and holding a diverse portfolio is far more Danny Cox likely to produce the requisite longer term returns. Danny Cox FPFS head of communications at Hargreaves Lansdown Danny is a Chartered Financial Planner and he has 25 years experience in personal finance specialising in financial advice. He holds the Personal Finance Society s Chartered Financial Planner status. His awards include the coveted Money Management Financial Planner of the Year award and Financial Adviser Sipp adviser of the year. www.hl.co.uk 34 November - December 2016 www.financialplanningtoday.co.uk DFM DIRECTORY DFM directory hese tables show 190 discretionary propositions from more than 80 discretionary firms. In the main these are discretionary firms that have shown interest in adviser distribution. There are 3 types of proposition listed Bespoke portfolio services Managed Portfolio services (where custody of assets is facilitated through the discretionary firm) and Managed Portfolio services (where portfolios are hosted T on and custody of assets is with the platform). Year on year 63 out of 78 discretionary firms that release relevant data have shown growth in discretionary assets under management and 14 of the discretionary firms that offer MPS services have added to their portfolio range. In the last year 12 of 190 propositions have reduced their headline service fee. We know that others have done the same but this is facilitated through fee negotiation rather than explicit change. Elsewhere The Controlled Function regime is being phased out and replaced by the Senior Management Function (in compliance terms CF10 is being replaced by SMF16). There s no doubt that MiFid II will improve pre and post-sale disclosure. Defaqto which supplies these tables is grateful to those discretionary firms which disclose so much relevant and important information. Date for advisers diaries Defaqto Investment conference 28 February 2017. For more on this and DFM market updates and news see Defaqto.com. Provider Albert E Sharp Albert E Sharp Albert E Sharp Alpha Portfolio Management Alpha Portfolio Management Alpha Portfolio Management Alpha Portfolio Management Alpha Portfolio Management Apollo Multi Asset Management Arbuthnot Latham & Co Ltd Arbuthnot Latham & Co Ltd Beaufort Investment Management Bordier & Cie (UK) PLC Bordier & Cie (UK) PLC Bordier & Cie (UK) PLC Brewin Dolphin Brewin Dolphin Brooks Macdonald Brooks Macdonald Brooks Macdonald Brooks Macdonald Brown Shipley Brown Shipley Brown Shipley Canaccord Genuity Wealth Management Canaccord Genuity Wealth Management Canaccord Genuity Wealth Management Canaccord Genuity Wealth Management Canaccord Genuity Wealth Management Cazenove Capital Management Cazenove Capital Management Charles Stanley & Co Ltd Charles Stanley & Co Ltd Charles Stanley & Co Ltd Charles Stanley & Co Ltd Charles Stanley Pan Asset Charles Stanley Pan Asset Church House Investment Management Church House Investment Management City Asset Management City Asset Management Clarion Investment Management Limited Close Brothers Asset Management Close Brothers Asset Management Close Brothers Asset Management Close Brothers Asset Management Close Brothers Asset Management Cornelian Asset Managers Ltd Cornelian Asset Managers Ltd Cornelian Asset Managers Ltd EQ Investors Product Bespoke Portfolio Service Model Portfolio Service Direct Model Portfolio Service Platform Bespoke Portfolio Service - Charging Option 1 Bespoke Portfolio Service - Charging Option 2 Managed Portfolio Service - Collectives only Managed Portfolio Service-Direct Equity Collective Managed Portfolio Service - Collectives - Platform Athena Controlled Risk Discretionary - Platform Collective Investment Services Direct Investment Services Discretionary Portfolio Management - Platform Wealth Management Service Bordier (UK) Managed Portfolio Service Platform Managed Portfolio Service Discretionary Service Managed Portfolio Service Bespoke Portfolio Service - Option 1 Bespoke Portfolio Service - Option 2 Managed Portfolio Service Platform Managed Portfolio Service Adviser Portfolio Service Premium Portfolio Service Platform Model Portfolio Service Discretionary Portfolio Management GPS Optimized Portfolio MPS (Managed Portfolio Service) GPS Optimized Portfolio - Platform MPS (Managed Portfolio Service) - Platform Discretionary Service Managed Portfolio Service - Platform Bespoke Discretionary Management Service Collectives Portfolio Service DFM Model Portfolio Service Collectives Portfolio Service - Platform PanASSET Model Portfolio PanDYNAMIC Model Portfolio Discretionary Management Service Church House Advantage Managed Portfolio Service Bespoke Discretionary Management Platform Based Model Portfolios Discretionary Investment Management Bespoke Portfolios Option 1 (Clean Fee) Bespoke Portfolios Option 2 (Fee Dealing) Discretionary Managed Services Managed Portfolio Service Managed Portfolio Service - Platform Discretionary Investment Management Services Managed Portfolio Service Managed Portfolio Service - Platform Absolute Return Portfolios Service Type Bespoke direct MPS direct MPS platform Bespoke direct Bespoke direct MPS direct MPS direct MPS platform MPS platform MPS direct MPS direct MPS platform Bespoke direct MPS direct MPS platform Bespoke direct MPS platform Bespoke direct Bespoke direct MPS direct MPS platform Bespoke direct Bespoke direct MPS platform Bespoke direct MPS direct MPS direct MPS platform MPS platform Bespoke direct MPS platform Bespoke direct MPS direct MPS direct MPS platform MPS platform MPS platform Bespoke direct MPS direct Bespoke direct MPS platform MPS platform Bespoke direct Bespoke direct MPS direct MPS direct MPS platform Bespoke direct MPS direct MPS platform MPS platform No. of Group Portfolio AUM Options ( bn) ns ns ns ns ns ns na 0.149 na 0.149 12 0.149 8 0.149 10 0.149 10 0.219 10 0.7 8 0.7 42 0.502 na 8 5 8 5 8 na 32.8 5 32.8 na 8.301 na 8.301 10 8.301 8 8.301 na 4.4 na 4.4 24 4.4 na 13.2 5 13.2 7 13.2 5 13.2 7 13.2 na 324.9 6 319.5 na 20.5 12 20.5 3 20.5 12 20.5 6 20.5 7 20.5 na 0.811 6 0.811 na 0.438 6 0.438 13 0.125 na 9.1 na 9.1 5 9.1 4 9.1 4 9.1 na 0.857 6 0.857 5 0.857 1 0.5 Date of Svce Fee Group AUM pa 250k Inv % ns ns ns ns ns ns 31-May-16 1 31-May-16 0.25 31-May-16 0.65 31-May-16 0.8 31-May-16 0.4 31-Dec-15 0.51 30-Jun-15 na 30-Jun-15 na 30-Apr-16 0.3 31-May-16 1.2 31-May-16 0.75 31-May-16 0.3 31-Mar-16 1 31-Mar-16 0.3 30-Jun-16 0.75 30-Jun-16 1 30-Jun-16 0.75 30-Jun-16 0.4 30-Jun-16 na 30-Jun-16 0.75 30-Jun-16 0.3 31-Jul-16 0.75 31-Jul-16 0.8 31-Jul-16 0.75 31-Jul-16 0.5 31-Jul-16 0.5 31-Mar-16 0.85 31-Mar-15 0.3 31-Mar-16 0.85 31-Mar-16 0.75 31-Mar-16 0.75 31-Mar-16 0.3 31-Mar-16 0.2 31-Mar-16 0.2 30-Jun-16 1 30-Jun-16 0.25 30-Jun-16 0.65 30-Jun-16 0.25 30-Jun-15 0.75 31-Jan-16 na 31-Jan-16 na 31-Jan-16 1 31-Jan-16 0.3 31-Jan-16 0.3 31-May-16 na 31-May-16 0.87 31-May-16 0.3 30-Sep-15 0.35 Trans. Trans. Min. Fee Fee % Invest. ns ns ns ns ns ns ns ns ns na na 100000 na 1.5 100000 na na 20000 na na 50000 na na 0 na na 5000 na na 400000 na na 400000 na na 0 50 na 250000 na na 20000 na na 1000 na na 150000 na na 2000 15 1 200000 15 na 200000 na na 20000 na na 1000 na na 350000 25 na 250000 na na 0 30 na 250000 na na 100000 30 na 100000 na na 0 na na 0 25 na 200000 na na 1000 na na 80000 na na 30000 na na 50000 na na 0 na na 0 na na 0 15 0.5 250000 na 0.9 1000 na 1 150000 na na 0 na na 0 na na 1000000 na 1.5 1000000 na 0.1 100000 na 0.1 30000 na na 30000 na 0.2 300000 na na 100000 na na 2000 na na 10000 Web Link www.albertesharp.com www.albertesharp.com www.albertesharp.com www.alpha-pm.co.uk www.alpha-pm.co.uk www.alpha-pm.co.uk www.alpha-pm.co.uk www.alpha-pm.co.uk www.apollomultiasset.com www.arbuthnotlatham.co.uk www.arbuthnotlatham.co.uk www.beaufortinvestment.co.uk www.bordieruk.com www.bordieruk.com www.bordieruk.com www.brewin.co.uk financial-advisers www.brewin.co.uk financial-advisers www.brooksmacdonald.com www.brooksmacdonald.com www.brooksmacdonald.com am www.brooksmacdonald.com am www.brownshipley.com www.brownshipley.com www.brownshipley.com ifas www.canaccordgenuity.com www.canaccordgenuity.com www.canaccordgenuity.com www.canaccordgenuity.com www.canaccordgenuity.com www.cazenovecapital.com adviser www.cazenovecapital.com adviser www.charles-stanley.co.uk intermediaries www.charles-stanley.co.uk intermediaries www.charles-stanley.co.uk intermediaries www.charles-stanley.co.uk intermediaries www.pan-asset.co.uk www.pan-asset.co.uk http www.ch-investments.co.uk http www.ch-investments.co.uk www.city-asset.co.uk www.city-asset.co.uk www.clarionwealth.co.uk bespoke.closebrothersam.com bespoke.closebrothersam.com bespoke.closebrothersam.com bespoke.closebrothersam.com bespoke.closebrothersam.com www.cornelianam.com www.cornelianam.com www.cornelianam.com www.eqinvestors.co.uk www.financialplanningtoday.co.uk November - December 2016 35 DFM DIRECTORY Provider EQ Investors European Investment Management Ltd European Investment Management Ltd Fairstone Private Wealth Ltd Fairstone Private Wealth Ltd Fieldings Fieldings GAM London Limited GAM London Limited GHC Capital Markets GHC Capital Markets GHC Capital Markets Hargreave Hale Hawksmoor Investment Management Limited Hawksmoor Investment Management Limited Heartwood Investment Management Heartwood Investment Management Hottinger Investment Management Limited Investec Wealth & Investment Limited Investec Wealth & Investment Limited Investec Wealth & Investment Limited IPS Capital LLP IPS Capital LLP James Brearley & Sons James Brearley & Sons James Brearley & Sons James Brearley & Sons James Hambro & Partners LLP James Hambro & Partners LLP JM Finn & Co JM Finn & Co King & Shaxson Capital Limited King & Shaxson Capital Limited Kleinwort Benson Kleinwort Benson Kleinwort Benson LGT Vestra LLP LGT Vestra LLP LGT Vestra LLP Liontrust Investment Solutions Ltd Liontrust Investment Solutions Ltd London and Capital London and Capital London and Capital McInroy & Wood MitonOptimal Portfolio Management (CI) MitonOptimal Portfolio Management (CI) Mole Valley Asset Management Morningstar Investment Management Europe Morningstar Investment Management Europe Mountstone Partners Ltd Myddleton Croft Investment Managers Myddleton Croft Investment Managers Nedbank Private Wealth Newscape Capital Group Novia Financial plc OCM Asset Management OCM Asset Management OCM Asset Management Octopus Investments Octopus Investments Old Mutual Wealth Old Mutual Wealth Parallel Investment Management Parmenion Capital Partners LLP Pilling & Co Stockbrokers Ltd Pilling & Co Stockbrokers Ltd Premier Asset Management Premier Asset Management Price Bailey Financial Planning Prospect Wealth Management Product Positive Impact Portfolios Bespoke Discretionary Management Model Portfolio Service - MOSAIC Platform Managed Portfolio Service Managed Portfolio Service - Platform Bespoke Discretionary Management - Option 1 Bespoke Discretionary Management - Option 2 Discretionary Fund Management Managed Portfolio Service - Platform Bespoke Portfolio Service (BPS) Dynamic Core Satellite (DCS) Optimised Portfolio Service (OPS) Discretionary Investment Management Bespoke Discretionary Portfolio Management Service The Model Portfolio Service Discretionary Portfolio Management Platform Model Portfolios Discretionary Fund Management Discretionary Fund Management Fee Commission Discretionary Fund Management Fee Only Master Portfolio Service IPS Discretionary Investment Management Service IPS Managed Portfolio Service Portfolio Management Service-(1)Inclusive Bespoke Portfolio Management Srvc-(2)Transaction Bespoke Portfolio Management Service-(1)Inclusive Model Portfolio Management Service-(2)Transaction Model Bespoke Portfolio - Fee Only Bespoke Portfolio - Fee plus Commission Discretionary Management Service Fee & Commission Discretionary Management Service Fee only Personal Discretionary Service Platform Ethical Portfolios Bespoke Portfolio Service Discretionary Portfolio Service Managed Portfolio Strategies Discretionary Investment Management Services Model Portfolio Service Platform Model Portfolio Service Wealth Solutions Service Managed Portfolio Service - Platform Discretionary Investment Management Discretionary Managed Portfolios Global Model Portfolio Service Discretionary Investment Management Service Bespoke Portfolio Service Managed Portfolio Service Bespoke Discretionary Portfolios Morningstar Governed Portfolios Morningstar Managed Portfolios Bespoke Portfolio Management Bespoke Portfolio Service Model Portfolio Service - Platform Discretionary Investment Management Service Model Portfolio Service Copia Capital Management Discretionary Fund Management - Bespoke Discretionary Fund Management - Model Discretionary Fund Management - Model - Platform Octopus Portfolio Manager (OPM) Direct Octopus Portfolio Manager (OPM) Platform WealthSelect Managed Portfolio Service WealthSelect Managed Portfolio Service - Platform Model Portfolio Service Discretionary Management Service Discretionary Management Service Pilling Ideal Portfolio Premier Portfolio Management Service - Model Premier Portfolio Management Service - Platform Portfolio Management Service Model Portfolio Service Service Type MPS platform Bespoke direct MPS platform MPS direct MPS platform Bespoke direct Bespoke direct MPS direct MPS platform Bespoke direct MPS direct MPS direct Bespoke direct Bespoke direct MPS platform MPS direct MPS platform Bespoke direct Bespoke direct Bespoke direct MPS direct Bespoke direct MPS platform Bespoke direct Bespoke direct MPS direct MPS direct Bespoke direct Bespoke direct Bespoke direct Bespoke direct Bespoke direct MPS platform Bespoke direct Bespoke direct MPS platform Bespoke direct MPS direct MPS platform MPS direct MPS platform Bespoke direct MPS platform MPS platform Bespoke direct Bespoke direct MPS direct Bespoke direct MPS platform MPS platform Bespoke direct Bespoke direct MPS platform MPS direct MPS platform MPS direct Bespoke direct MPS direct MPS platform MPS direct MPS platform MPS direct MPS platform MPS platform MPS direct Bespoke direct MPS direct MPS direct MPS platform MPS direct MPS direct No. of Group Portfolio AUM Options ( bn) 7 0.5 na 1.35 5 1.35 13 2.35 13 2.35 ns ns ns ns 5 84.5 5 84.5 na 0.296 6 0.296 7 0.296 na 5.5 na 0.548 6 0.548 8 2.55 4 2.55 ns ns na 27.58 na 27.58 6 27.58 na 0.425 3 0.425 na 0.21 na 0.21 7 0.21 7 0.21 na 1.7 na 1.7 na 7.8 na 7.8 na 1.95 5 1.95 na 5.3 na 5.3 6 5.3 5.7 na 6 5.7 6 5.7 27 4.8 22 4.8 na 2.38 10 2.38 5 2.38 na 1.26 na 0.55 5 0.55 na 0.016 5 135.7 16 135.7 na 0.108 na 0.075 8 0.075 4 11.8 11 0.35 10 3.5 na 0.205 4 0.205 4 0.205 10 5.3 8 5.3 16 111.2 16 111.2 9 0.23 130 2.32 ns ns ns ns 11 4.7 11 4.7 9 0.525 6 0.15 Date of Svce Fee Group AUM pa 250k Inv % 30-Sep-15 0.35 30-Jun-16 1 30-Jun-16 0.6 30-Oct-15 0.4 30-Oct-15 0.4 ns ns ns ns 31-Dec-15 0.7 31-Dec-15 0.25 30-Jun-16 0.75 30-Jun-16 0.75 30-Jun-16 0.75 31-Mar-16 0.75 31-May-16 0.75 31-May-16 0.3 31-May-16 na 31-May-16 0.4 ns ns 31-Mar-16 0.75 31-Mar-15 1 31-Mar-15 0.85 31-Dec-14 na 31-Dec-14 0.3 30-Apr-15 1 30-Apr-15 0.6 30-Apr-15 1 30-Apr-15 0.6 30-Apr-16 na 30-Apr-16 na 31-Dec-15 0.75 31-Dec-15 1.2 31-Mar-15 0.65 31-Mar-15 0.5 31-Dec-15 na 31-Dec-15 1 31-Dec-15 0.35 30-Apr-16 0.75 30-Apr-16 0.25 30-Apr-16 0.25 31-Mar-16 0.32 31-Mar-16 0.3 31-Mar-15 na 31-Mar-15 0.25 31-Mar-15 1 30-Jun-16 na 31-Mar-16 1 31-Mar-16 0.35 01-Apr-16 0.6 31-Dec-15 0.15 31-Dec-15 0.3 01-Jun-16 na 30-Jun-16 0.75 30-Jun-16 0.6 31-Jan-15 na 31-May-15 0.35 01-Jun-15 0.3 10-Apr-15 0.49 10-Apr-15 0.35 10-Apr-15 0.35 30-Apr-15 0.65 30-Apr-15 0 30-Jun-16 0 30-Jun-16 0 31-May-16 0.3 10-Jun-16 0.3 ns ns ns ns 31-May-16 1 31-May-16 0 01-May-16 0.35 31-Mar-16 0.75 Trans. Trans. Min. Fee Fee % Invest. na na 10000 na 1 100000 na na 0 na na 1000 na na 1000 ns ns ns ns ns ns na na 150000 na na 0 na 0.75 100000 na na 25000 na 0.75 50000 na na 0 30 na 0 na na 0 na na 1000000 na na 0 ns ns ns 25 1 150000 25 na 150000 na na 50000 na 0.2 500000 na na 0 na na 50000 15 na 50000 na na 50000 15 na 50000 na na 500000 na 1 500000 20 1 100000 20 na 100000 na 1 250000 na na 0 na na 3000000 na na 250000 na na 100000 na na 250000 na na 50000 na na 0 na na 1000 na na 1000 na na 1000000 na na 0 na na 0 na na 500000 37.5 na 250000 37.5 na 75000 25 0.3 15240 na na 0 na na 0 na na 500000 na na 60000 na na 0 na na 500000 na na 0 na na 0 2 0.05 5000 2 0.05 0 na na 0 na na 0 na na 0 na na 2500 na na 2500 na na 0 na 0.9 50 ns ns ns ns ns ns na na 150000 na na ns 2 na 1000 na 1 75000 Web Link www.eqinvestors.co.uk www.europeanwealth.com www.europeanwealth.com www.marketstar.co.uk www.marketstar.co.uk www.fieldingsim.co.uk www.fieldingsim.co.uk www.gam.com www.gam.com www.ghcl.co.uk www.ghcl.co.uk www.ghcl.co.uk www.hargreave-hale.co.uk intermediaries www.hawksmoorim.co.uk advisers discretionary-portfolio www.hawksmoorim.co.uk www.heartwoodgroup.co.uk www.heartwoodgroup.co.uk www.hottinger.co.uk www.wealthinvestment.investec.co.uk www.wealthinvestment.investec.co.uk www.wealthinvestment.investec.co.uk www.ipscap.com professional-advisors www.ipscap.com professional-advisors www.jbrearley.co.uk www.jbrearley.co.uk www.jbrearley.co.uk www.jbrearley.co.uk www.jameshambro.com Investment Services www.jameshambro.com Investment Services www.jmfinn.com www.jmfinn.com www.ksep.co.uk www.ksep.co.uk www.kleinwortbenson.com www.kleinwortbenson.com www.kleinwortbenson.com www.lgtvestra.com www.lgtvestra.com www.lgtvestra.com www.liontrust.co.uk www.liontrust.co.uk www.londonandcapital.com adviser www.londonandcapital.com adviser www.londonandcapital.com adviser www.mcinroy-wood.co.uk www.mitonoptimal.com www.mitonoptimal.com www.mvam.com corporate1.morningstar.com corporate1.morningstar.com www.mountstonepartners.com www.myddletoncroft.co.uk intermediaries www.myddletoncroft.co.uk intermediaries www.nedbankprivatewealth.com ifa home www.newscapegroup.com www.copia-capital.co.uk www.ocmwealthmanagement.co.uk www.ocmwealthmanagement.co.uk www.ocmwealthmanagement.co.uk www.octopusinvestments.com www.octopusinvestments.com www.wealthselect.oldmutualwealth.co.uk www.wealthselect.oldmutualwealth.co.uk www.parallel-im.co.uk www.parmenion.co.uk www.pilling.co.uk www.pilling.co.uk https www.premierfunds.co.uk https www.premierfunds.co.uk www.pricebailey.co.uk services private-client www.prospectwealth.co.uk 36 November - December 2016 www.financialplanningtoday.co.uk DFM DIRECTORY No. of Group Date of Svce Fee Trans. Trans. Min. Web Link Portfolio AUM Group AUM pa 250k Fee Fee % Invest. Options ( bn) Inv % Psigma Investment Management Bespoke Portfolio Bespoke direct na 24 31-Mar-16 1 na na 250000 www.psigma.com Psigma Investment Management Managed Portfolio Service MPS direct 6 24 31-Mar-16 0.5 na na 50000 www.psigma.com Psigma Investment Management Psigma Platform Portfolios MPS platform 5 24 31-Mar-16 0.35 na na 0 www.psigma.com Quartet Capital Partners LLP Bespoke Discretionary Service Bespoke direct na 0.2 31-Mar-16 0.9 na na 200000 www.quartet-im.com Quilter Cheviot Discretionary Investment Management - Option 1 Bespoke direct na 18.8 30-Jun-16 0.75 40 1.2 200000 www.quiltercheviot.com Quilter Cheviot Discretionary Investment Management - Option 2 Bespoke direct na 18.8 30-Jun-16 1 na na 200000 www.quiltercheviot.com Quilter Cheviot Managed Portfolio Service MPS direct 11 18.8 30-Jun-16 0.85 na na 25000 www.quiltercheviot.com Quilter Cheviot Managed Portfolio Service - Platform MPS platform 10 18.8 30-Jun-16 0.3 na na 0 www.quiltercheviot.com Rathbone Investment Management Individual Portfolio Service Bespoke direct na 29.3 05-Apr-16 1.2 na na 100000 www.rathbones.com RC Brown Investment Management Plc Bespoke Portfolio Service - Conventional Fee Bespoke direct na 0.197 31-Mar-16 1.25 na na 15000 www.rcbim.co.uk professional-advisers RC Brown Investment Management Plc Bespoke Portfolio Service - Performance Fee Bespoke direct na 0.197 31-Mar-16 0.625 na na 15000 www.rcbim.co.uk professional-advisers RC Brown Investment Management Plc Managed Portfolio Service - Conventional Fee MPS direct 6 0.197 31-Mar-16 1.25 na na 15000 www.rcbim.co.uk professional-advisers RC Brown Investment Management Plc Managed Portfolio Service - Performance Fee MPS direct 6 0.197 31-Mar-16 0.625 na na 15000 www.rcbim.co.uk professional-advisers Redmayne-Bentley Bespoke Discretionary - Fee Commission Bespoke direct na 1.5 30-Jun-16 0.5 na 0.5 50000 www.redmayne.co.uk Redmayne-Bentley Bespoke Discretionary - Fee only Bespoke direct na 1.5 30-Jun-16 0.95 na na 50000 www.redmayne.co.uk Richmond House Investment Services Ltd Discretionary Management Services MPS platform 7 0.285 31-May-16 0.5 na na 50000 www.rhginvestmentmanagement.co.uk Rowan Dartington & Co Limited RD Signature Bespoke Portfolio Service Fee comm Bespoke direct na 1.3 30-Jun-16 0 na 1.5 100000 www.signature.co.uk Rowan Dartington & Co Limited RD Signature Bespoke Portfolio Service Fee only Bespoke direct na 1.3 30-Jun-16 0.75 na na 100000 www.signature.co.uk Rowan Dartington & Co Limited RD Signature Collective Portfolio Service MPS direct 7 1.3 30-Jun-16 0.35 na na 10000 www.signature.co.uk Rowan Dartington & Co Limited RD Signature Collective Port Service - Platform MPS platform 7 1.3 30-Jun-16 0.35 na na 0 www.signature.co.uk Ruffer LLP Bespoke Discretionary Portfolio Management Bespoke direct ns ns ns ns ns ns ns www.ruffer.co.uk S C Davies & Co Bespoke Management Service Bespoke direct ns ns ns ns ns ns ns www.scdavies.com Saltus Investment Managers Direct DFM MPS direct 3 0.5 30-Jun-15 1 na na 50000 www.saltus.co.uk Saltus Investment Managers DFM-on-Wrap MPS platform 3 0.5 30-Jun-15 1 na na 1000 www.saltus.co.uk Sanlam FOUR Investments UK Limited Sanlam Model Portfolios MPS platform 12 40.6 31-Mar-15 0.3 na na 0 www.sanlam.co.uk Sanlam Private Wealth High Net Worth Service Bespoke direct na 55 31-Dec-15 1 na 0.2 250000 www.sanlamprivatewealth.co.uk financial-advisers Sanlam Private Wealth Managed Funds Portfolio Service MPS direct 11 55 31-Dec-15 1 na na 100000 www.privatewealth.sanlam.co.uk financial-advisors Sarasin & Partners Sarasin Model Portfolios MPS platform 5 13.4 31-Mar-16 0.25 na na 50000 www.sarasinandpartners.com Seven Investment Management Discretionary Management Service Bespoke direct na 10.29 30-Apr-16 0.25 na na 200000 www.7IM.co.uk Seven Investment Management Model Portfolio Service MPS direct 6 10.29 30-Apr-16 0.25 na na 25000 www.7IM.co.uk Seven Investment Management Model Portfolio Service - Platform MPS platform 6 10.29 30-Apr-16 0.25 na na 1000 www.7IM.co.uk Shipman Investment Managers Managed Portfolio Service MPS platform 6 0.105 31-Dec-15 0.6 12 na 2500 www.shipmanim.co.uk Smith & Williamson Portfolio Investment Account - Option 1 Bespoke direct na 16.04 31-Mar-16 1 na na 100000 www.sandwdfm.com Smith & Williamson Portfolio Investment Account - Option 2 Bespoke direct na 16.04 31-Mar-16 0.75 na 0.6 100000 www.sandwdfm.com Smith & Williamson Managed Portfolio Service (MPS) MPS platform 6 16.04 31-Mar-16 0.3 na na 0 www.sandwdfm.com Standard Life Wealth Bespoke Portfolio Management Bespoke direct na 328 30-Jun-15 na na na 500000 www.standardlifewealth.com 328 30-Jun-15 0.3 na na 100000 www.adviserzone.com Standard Life Wealth Managed Portfolio Service MPS direct 10 Strand Capital Model Portfolio Service MPS direct 5 0.0035 08-Jun-16 0.7 na 0.2 0 www.strandcapital.co.uk TAM Asset Management Premier Full Discretionary Service Bespoke direct na 0.231 31-Dec-15 1 na 1 100000 www.tamassetmanagement.com TAM Asset Management Focus Model Portfolio MPS direct 4 0.231 31-Dec-15 0.5 12.5 na 7500 www.tamassetmanagement.com TAM Asset Management TAM Ethical Portfolio MPS direct 5 0.231 31-Dec-15 0.65 15 na 10000 www.tamassetmanagement.com TAM Asset Management TAM Sharia Portfolio MPS direct 5 0.231 31-Dec-15 1 na 1 10000 www.tamassetmanagement.com TAM Asset Management TAM Ethical Portfolio - Platform MPS platform 5 0.231 31-Dec-15 0.4 na na 10000 www.tamassetmanagement.com Tatton Investment Management Tatton Strategic Managed Portfolio Service (SMPS) MPS platform 24 2.8 30-Jun-16 0.2 na na 0 www.tattoninvestments.com Tavistock Wealth Central Investment Proposition-Partner Profiles MPS platform ns ns ns ns ns ns ns www.tavistockwealth.com Tavistock Wealth Central Investment Proposition-Tavistock Profiles MPS platform ns ns ns ns ns ns ns www.tavistockwealth.com Thesis Asset Management Personal Investment Portfolio Service - (Fee only) Bespoke direct na 10.43 31-May-16 0.9 na na 150000 www.thesis-plc.com Thesis Asset Management Thesis Model Portfolio Service MPS direct 19 10.43 31-May-16 0.75 na na 25000 www.thesis-plc.com Thesis Asset Management Thesis Model Portfolio Service - Platform MPS platform 19 10.43 31-May-16 0.4 na na 10000 www.thesis-plc.com Thomas Miller Investment Ltd Discretionary Investment Management Bespoke direct na 3.06 31-Mar-16 1 na na 250000 www.tminvestment.com Thomas Miller Investment Ltd Model Portfolio Service MPS platform 6 3.06 31-Mar-16 0.3 na na 20000 www.tminvestment.com Tilney for Interrmediaries Investment Management Service Bespoke direct na 9.4 31-Dec-15 0.75 na na 200000 www.tilneyforintermediaries.co.uk Tilney for Interrmediaries Managed Portfolio Service - Direct MPS direct 9 9.4 31-Dec-15 0.5 na na 50000 www.tilneyforintermediaries.co.uk Tilney for Interrmediaries Managed Portfolio Service - Platform MPS platform 9 9.4 31-Dec-15 0.3 na na 0 www.tilneyforintermediaries.co.uk Vertem Asset Management Bespoke Portfolio Solution Bespoke direct na 0.26 31-Dec-15 1 na na 50000 www.vertemassetmanagement.com Walker Crips Walker Crips Bespoke Portfolios Bespoke direct na 4.1 31-Mar-16 0.8 na na 100000 www.walkercambria.co.uk Walker Crips Actively Managed Portfolio Service - RTI MPS direct 10 4.1 31-Mar-16 0.8 na na 25000 www.wcgplc.co.uk Walker Crips Alpha r2 MPS direct 8 4.1 31-Mar-16 0.7 na na 25000 www.wcgplc.co.uk Walker Crips Actively Managed Portfolio Service - RTIP MPS platform 5 4.1 31-Mar-16 0.3 na na 0 www.wcgplc.co.uk Walker Crips Alpha r2 Platform MPS platform 8 4.1 31-Mar-16 0.3 na na 2000 www.wcgplc.co.uk Waverton Investment Management Ltd Discretionary Management Services Bespoke direct na 4.5 31-Dec-15 na na na 500000 www.waverton.co.uk Waverton Investment Management Ltd Model Portfolios based on Platform MPS platform 6 4.5 31-Dec-15 0.4 na na 1 www.waverton.co.uk Wellian Investment Solutions Investment Solutions Portfolio - Model MPS direct 9 0.261 29-Jul-16 0.75 na na 25000 www.wellian-is.com Wellian Investment Solutions Investment Solutions Portfolio - Platform MPS platform 9 0.261 29-Jul-16 0.35 na na 0 www.wellian-is.com WHIreland Bespoke Portfolio Service - Fee Only Bespoke direct na 2.68 31-May-16 1 17.5 na 100000 www.whirelandplc.com WHIreland Bespoke Portfolio Service - Fee plus commission Bespoke direct na 2.68 31-May-16 0.5 17.5 1.95 100000 www.whirelandplc.com Whitechurch Securities Ltd Prestige Investment Management Service Bespoke direct na 0.366 31-Jul-16 0.45 17.5 0.25 50000 www.whitechurch.co.uk Whitechurch Securities Ltd Portfolio Management Service - Direct MPS direct 9 0.366 31-Jul-16 0.75 12.5 na 3000 www.whitechurch.co.uk Whitechurch Securities Ltd Portfolio Management Service - Platform MPS platform 4 0.366 31-Jul-16 0.5 na na 3000 www.whitechurch.co.uk Notes Tables provided by Defaqto and show most if not all Discretionary Fund Management providers working with UK financial advisers. Inclusion is no recommendation. For further information and more DFM data please contact Defaqto. Please inform editor portfoliopublishing.co.uk if you notice any errors or amendments required. Tables have been edited. Data supplied 3 November 2016. Provider Product Service Type www.financialplanningtoday.co.uk November - December 2016 37 DIARY Financial Planning Today magazine is published by Portfolio Publishing. Financial Planning Today is an independent magazine for professional Financial Planners Paraplanners Wealth Managers and other financial advisers and finance professionals. EDITORIAL Publisher & Group Editor Kevin O Donnell 01895 678629 kevin.odonnell portfoliopublishing.co.uk Deputy Editor James Nadal 01895 676658 james.nadal portfoliopublishing.co.uk Art & Production Jason Taylor jason.taylor portfoliopublishing.co.uk Email address for news releases newsdesk portfoliopublishing.co.uk Editorial Feedback Complaints Contact Editor at email address above ADVERTISING Advertising Enquiries 01895 672771 sales portfoliopublishing.co.uk GENERAL ENQUIRIES General enquiries Louise Glover 01895 672771 louise.glover portfoliopublishing.co.uk PUBLISHING Published by Portfolio Publishing Village House 13-15 Swakeleys Road Ickenham London UB10 8DF. 01895 678629 www.portfoliopublishing.co.uk Subscriber Enquiries 01895 672771 Targeted Audience 7 000 UK Financial Planners Paraplanners and Wealth Managers. Financial Planning Today website reaches 6 000 users per month (Google Analytics) Financial Planning Today is published bi-monthly (6 times a year). 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Portfolio does not perform regulatory due diligence on authors or submissions and can accept no responsibility for loss occasioned to any person on taking or refraining from action as a result of the material herein. Portfolio Publishing Ltd. Losing my brother and a client motivated me A Chartered Financial Planner who has lost his brother and one of his longest standing clients to cancer has raised 10 000 by cycling from Venice to Rome. Mike Humble who works for LEBC covered 381 miles in four days over the Apennines in aid of Macmillan Cancer Support. The LEBC Group supported his fundraising under the Inspire programme to the tune of 2 500. Since starting charity bike riding in 1997 Mike has raised 65 000 in total. Mike Humble said Over the years I have lost many family members friends and clients to cancer and Macmillan have always been there to support them and their families. This includes my youngest brother and one of my longest standing clients. She had been a client for 25 years when she died in 2009. Jack McVitie chief executive of LEBC said We are delighted Mike has met this challenge Left Nicola Watts and right Toby Planner Mike Humble in Italy and done so much for Macmillan Cancer Support. Through our charity initiative Inspire we are happy to have been able to support Mike in his efforts. Planner helps young boy with debilitating illness A Financial Planner has stepped in to help a family whose young boy suffers from a debilitating illness that causes frequent seizures. Nicola Watts CFPTM Chartered MCSI director of Jane Smith Financial Planning has got involved with Toby s Trust - set up by a family near her offices in Olney in Buckinghamshire. Toby has Drave Syndrome a severe life limiting form of epilepsy. He has hundreds of partial seizures throughout the day and suffers some that are life threatening. He no longer eats so is fed through a tube in his stomach and he doesn t talk or walk. Ms Watts held a coffee morning which raised just over 450 for the trust. She got involved after supporting an event in the town which raised money for the family and for Great Ormond Street in memory of another child who died. She said It brought home to us how any normal family could be affected by the birth of a disabled or very poorly child and we thought about the impact and strain it could have on them both financially and emotionally. It s important to us that we re not just a business but that we re seen to be part of this small community be that something like supporting Toby s Trust or sponsoring local events or sports clubs. Next issue 16 January 2017 Make it a date The big events and milestones coming up in 2017. Paraplanning Review A look at the latest developments in the burgeoning Paraplanning sphere. Sipps Spotlight It s been a stormy ride for Sipps in 2016 but what does 2017 hold for a mainstay element of many Financial Plans NEXT ISSUE of Financial Planning Today 19 Sept 38 November - December 2016 www.financialplanningtoday.co.uk PER LIC ENCE 125 SAVE O VER The Compliance Gold Standard Synaptic Research Suite for compliance teams Synaptic Product & Fund Synaptic Comparator Whole of market product and fund research full suitability reporting Detailed price analysis for platforms products and funds including RIY calculations ATRQ and Risk Rated funds and portfolios Model investment outcomes for new and existing holdings. 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