Forum Posts

rtull8
Feb 01, 2022
In Discussions
Giving clients a full choice of the best available products and services is always a challenge, even more so when the Financial Conduct Authority expects whole of market advisers to be able to offer everything that is available to retail investors, including Enterprise Investments and other specialist and higher risk investments. Most advisers are generalist, each with perhaps a few high net worth clients with specialist planning requirements, who are most likely to benefit from such schemes. This means that the average adviser is unlikely to be highly active in this field, and therefore short of the necessary knowledge to work effectively within it. If we go back some years, a typical approach was to get brochures from a small number of well-known companies and try to make sense of them. This is not a process that will satisfy most compliance officers today. It was also very difficult for less well-known fund managers to make much impression in the market as they lacked the presence of an established name. More comprehensive reports have always been available, but only on individual products, leaving advisers to narrow down their choices. The problem is magnified by the need to have a range of investments in a portfolio to avoid a concentration of risk. It was hard enough to research one product for selection, let alone eight or ten. As a first step, what was needed was a way in which advisers could carry out research in a systematic and repeatable way. In recent years, we have seen the emergence of research platforms such as MICAP, which gives an overview of what is available across the market, combined with more detailed reporting. This allows proper filtering and the creation of short lists. However, this does not necessarily produce the deeper kind of due diligence that allows advisers to assess the nature of underlying investments, the credibility of those managing them and the true nature of the risks involved. This extra layer is also now available. Finally, there is the logistical problem of transacting business, ideally as digital as possible, such as ready access to reports, valuations and tax certificates. As in other areas of investment management, the emergence of platforms has facilitated this. We should not ignore the growth in a shared culture of knowledge, encouraged by industry publications, research houses and adviser peer groups. The New Opus website is intended to promote much better knowledge sharing between advisers across the industry, and with product providers and fund managers.
Due diligence, choice & compliance – how to make it work content media
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rtull8
Sep 03, 2020
In Discussions
I thought it would be useful to start a thread specifically on what is available from the different networks. As an example, here is what 2Plan has offered Andy Holliday. Retention Rate Discount: Your retention rate will be 9.78 % for the first 12 months based on business levels of £270,000 at which stage this will be reviewed as part of your annual measurement period review. As covered going forward as your income increases the % rate will reduce. For example If you produced £350,000 the rate would be 8.46 %. This will be payable on all income, initial and ongoing and on all protection business. Business Service Charge: On investment and pension business where you charge, we apply a business service charge (BSC) based on the amount invested. Therefore, if the investment is £100,000 and the ongoing fee is 1% the fee the client will pay is £1,000. The BSC is 0.04% of the amount invested i.e. £40 in this example and this would be deducted from the £1,000 fee. i.e. £960 would be paid to your fee account. The BSC was introduced to counter the increasing costs of regulation in our industry. In order to offset this, we have negotiated lower platform fees wherever possible with the providers so although you would/ could pass this extra charge onto your clients, the intention is that they end up in a net position at the end of the day. As discussed the BSC will not be payable on pre-rdr business where no fee agreement is in place.
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rtull8
Aug 25, 2020
In Discussions
Hello I thought it would be useful to set out some thoughts based on my own experience about some of the priorities for advisers when looking to the future. Obviously, the current situation at Quilter is that many people have been suddenly compelled to think about how they will operate their business, how they will be regulated and whether to join a new network or stay with the existing one, if that is an option. Clearly I have my own thoughts on what I will do in future, which will not necessarily suit everyone else but I do have the resources of New Opus to help everyone make a considered decision, whatever that may be. As you will learn from other postings from the New Opus team , its origins lie in business networking and not in the financial services industry. It is therefore completely independent of any industry influence . I have found some of the recent press comments very unhelpful and setting the wrong tone in this situation , particularly when describing experienced and older advisers as “unproductive”. Many do not necessarily seek high levels of production but have substantial levels of skill, experience and a wide range of contacts that should be should not be lost to the industry. It seems to me that this is a great opportunity four people to arrange things better. In some cases, this will mean advisers joining their businesses into a combined practise, with a proper programme of development. From my experience, some of the factors which inhibit business development are quite simply matters of organisation. For example, greater productivity can be achieved by making effective use of support staff and collaboration between advisers. I think there is a better range of succession strategies for advisers than we sometimes assume and that it is possible to develop a number of different models which will suit different advisers. I think there is a clear need to bring new blood into the industry and we can support this better. I also believe that we can take advantage of better technology to engage with more clients, more effectively. There are a number of areas in which New Opus will be able to help: creating better collaboration between advisers and better communication with product providers; running a more effective programme of CPD; creating imaginative marketing resource is to reach a wider range of clients. I hope that this forum and the ongoing events that we will be organising will be a valuable resource for advisers, no matter where they choose to run their businesses.
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rtull8
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