Adviser ForumsWinter 2008

Bringing Order out of Chaos

David Golder

Managing Director – IFA Services

Adviser ForumsWinter 2008

Bringing Order out of Chaos

• Market Commentary

• Retail Distribution Review

• Bankhall Update

Turbulent Times!FTSE 100 index

“ I believe that in future years, we will look back at the current period and see it as an excellent long term buying opportunity….” Neil Woodford - Invesco Perpetual

Or…

“Wait for the big indicators before returning to the markets” Citywire - Tom Elliott JP Morgan Asset Management

But…

At times like these there are two types of economists; thosewho don’t know what to do, and those who don’t know that they

don’t know what to do – Anatole Kaletsky

Turbulent Times

• Public confidence in the institutions is low

• Opportunity to establish long-term relationships

• What are other IFAs doing?

Managing in Difficult Times“As a firm, we are looking to concentrate on the financial

planning side of the business, and to, where possible and appropriate. As a small firm, we see this as the best way of achieving growth, without incurring significant additional costs”

 Mike Caffyn Dip PFSDirectorThe Retirement Planning Partnership,

Managing in Difficult Times"In the difficult economic climate we are faced with we have

to maximise every opportunity for client contact. We are reviewing

existing clients with profit policies, protection contracts and pensions in

older style charging structures. These can be primarily administrator

led exercises so that everyone adds value to the business. In addition

we are reviewing business processes to ensure they are as robust and effective as possible."

 

Gavin Tisshaw

Chairman

Executive Advisory Services

Managing in Difficult Times“We have actively contacted our clients to keep them up to date with

our views on the economic situation and encouraged them to stay invested during the downturn.

 On the positive side we have suggested that on pensions in particular that they should consider  making single and monthly contributions into their schemes to benefit from pound cost averaging and low unit prices.

 We have also embarked upon a review of our protection book.

 The recession has also made us look at our service proposition to see what measures we can take to storm proof ourselves for the future"

Paul Jones Financial Services

Retail Distribution Review

The RDR Journey

Discussion Document – Summer 2007

Interim Report – April 2008

Feedback Statement – November 2008

Formal Consultation – June 2009

Final Policy Statement – Early 2010

Full Implementation by Dec 31st 2012

Retail Distribution Review1. Improve the clarity for consumers of the different service

types available to them;

2. Raise professional standards; and

3. Remove conflicts of interest in remuneration practices

and improve the transparency of the cost of advisory

services.

Clarity of Service!!FSA has amended its proposals to distinguish between “independent

advice” and “sales advice”

• Independent Advice

- whole of market advice

- agree cost of advice up front

- adhere to higher professional standards / qualifications (QCA4)

• Sales Advice

- single or multi tied advice

- same professional standards / qualifications (QCA4)

- show clearly cost of advice

Professional Standards

• Independent Professional Standards Board.

– Created within the FSA

– Role yet to be defined

– Potential for licencing

Remuneration• Remove product provider influence over adviser

remuneration.

• Advisers required to set their own charges for advice.

• Product providers permitted to facilitate payments to

advisers through the customer’s product or investment.

• Payment for advisory services made through the

customer’s product must be funded directly by a

matching deduction from that product,

Other Proposals• Increased Capital requirements:

- Extending the Expenditure Based Requirement to all firms

based on three months of relevant annual expenditure and raising

the minimum capital requirement from £10,000 to £20,000 for all

firms.

- Interim increase to £15,000 in 2010?

• Capital Resources:

- Revised rules to simplify the calculation

• Professional Indemnity Insurance

- Capital provision for excess

For principals and business owners

Considering the new proposals for prudential requirements what is your estimated fixed annual expenditure?

1. £80,000 or less2. More than £80,000 but less than £150,0003. More than £150,000 but less than £200,0004. More than £200,000

The new ifs Diploma for Financial Advisers

Bankhall Update

Bankhall partners with FirstCity to offer Professional Indemnity insurance to members

“FirstCity were EXCELLENT!!!The lowest price by far, excellent service and fast. Everything they promised they delivered.”

Alan Gribben, Gribben and Watt.

Key Benefits include:• Online application process – Quick, simple and more efficient• Competitive Premiums – Further discounted if compliance is purchased• Automatic renewal, subject to simplified disclosure – No new forms to fill in• No charge for monthly payments – You can choose to pay in full or monthly

Members have saved on average £1,023

Bankhall TV…

Annual Member Survey

• Thank you for the massive response!

• Informs our plans for new Bankhall Services

• 96% of you said that you would recommend Bankhall

• Member Referral

Recommend a friend today … …and receive £250 of vouchers when they join

Bankhall has launched a “Recommend a Friend” scheme for all our members.

If you know someone who would benefit from receiving our award winning services, let us know.

Once they become a member you will receive £250 of vouchers from a choice of high street stores.

For more information email referral@bankhall.co.uk or speak to your Area Manager or Compliance Consultant today.

Aegon Scottish Equitable FPPAegon Scottish Equitable Flexible Pension Plan is now available on

Portavista

Key Benefits to your clients:

• Wide investment choice• Investment Control• Potential Fund bonus • Flexible contributions

Key Benefits to you:• Flexible commission

structure• Potential to attract higher

net worth clients

Who is it for?

- Sophisticated investor - High net worth clients with at least 10 years to retirement - Access to a self-invested element

Find out more: www.aegonse.co.uk/bankhallpartner/portavista

More Providers to follow!• Currently scheduled to deliver 3 Pension; 3 On-Shore

and 3 Off-Shore Bonds in 2009• Providers announced at Conference:

– Met Life– Prudential– Scottish Widows– Zurich

• More providers approaching Bankhall to make products available on the Platform

A Better Income from Retirement PlanningPeter Cantrell

COFFEE BREAK

Programme Agenda

10:00 – 10:40 Just Retirement10:40 – 11:00 Refreshment Break11:00 – 11:40 Friends Provident11:40 – 12:20 Met Life12:20 – 12:25 Comfort Break12:25 – 13:05 AXA / Winterthur 13:05 – 13:15 Bankhall Compliance13:15 – 14:15 Christmas Lunch

COMFORT BREAK

Programme Agenda

10:00 – 10:40 Just Retirement10:40 – 11:00 Refreshment Break11:00 – 11:40 Friends Provident11:40 – 12:20 Met Life12:20 – 12:25 Comfort Break12:25 – 13:05 AXA / Winterthur 13:05 – 13:15 Bankhall Compliance13:15 – 14:15 Christmas Lunch

Thank you!