Intergenerational Planning | IFA 69 | June 2018

For today’s discerning financial and investment professional

Intergenerational Planning June 2018

ANALYSIS

REVIEWS

ISSUE 69

COMMENT

NEWS

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CONTE NTS June 2018

BETTE R BUSI N ESS June 2018

5 Better Business The three-legged 6 business stool Ed's Welcome

CONTRIBUTORS

News

Why do some financial planners enjoy greater success than others? Brett Davidson, Founder, 8 FP Advance suggests a process which you Brian Tora can use to ensure that not only do you Should we be worried about bonds? Brian Tora analyses some become more effective but happier

Brian Tora an Associate with investment managers JM Finn & Co.

of the issues involved

and more fulfilled with life too

Richard Harvey a distinguished independent PR and media consultant.

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Ed's Rantone Rant – Dollar Warsand focused on planning coaching their clients; we Michael Wilson examines the impact ofneed the to strong dollar onof become masters world markets relationship management.

“Knowledge can never get you where you want to go. The more you know, the less of what you know you can communicate to normal Helping people with people. That’s the conundrum: behavioural and emotional as your store of knowledge issues around their financial compounds, the percentage of Better business future is the one piece of the what you know that you can equation that can’t be Robo’d. usefully – or even comprehensibly Brett Davidson with practical tips on how you can become – tell folks approaches and then more effective as an adviser and live a happier life too Three is the magic number arrives at the vanishing point.”

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Neil Martin has been covering the global financial markets for over 20 years.

Brett Davidson

If you currently run your own Financial Planning firm, or you aspire to do so in the Intergenerational planning introduction future, then being a master An IFA Magazine special focus with a range of ideas to help of relationship, planning advisers and paraplanners to maximise the value of clients’ and coaching skillsestates is merely one step on the journey.

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FP Advance

I think of it like a three-legged stool.

The future for advisers has never been brighter, although in a changing world it doesn’t always feel like that.

However, don’t Legg fall into the trap Intergenerational planning - Peter of thinking that achieving these

First – Knowledge financial planning qualifications Theleg use of trusts – Peter Legg, IHT Planning Matters Ltd

Do you know your onions technically speaking?

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Editor-in-Chief editor ifamagazine.com

Editor sue.whitbread ifamagazine.com

Alex Sullivan Publishing Director alex.sullivan ifamagazine.com

will make you the finished article.

Second leg – Interpersonal Skills

New technology sees us on Let’s be honest, it can take the brink of some of the you 10 or -15Timebank years of hard Intergenerational planning Can you skilfully question, listen biggest developments in work to become really to, and engage with clients? This the nature ofplanning work across Intergenerational tips from theknowledgeable coal face –asDamian an adviser. skillset can take you a long time to all careers and professions.

Davies, The Timebank Whilst you do need to know acquire too, just like knowledge.

Ours is no different. your onions, that’s a given However, alarmingly, you can With investment advice in my opinion, there’s more get so good at it that you might continuing to be demystified to it. As Nick Murray says start taking shortcuts and cutting - HSBC Life and commoditised, the only inIntergenerational his book The Excellent planning corners, which can actually set real future for advisers is Investment Advisor:of HSBC Life gives youan backoverview if you’re not careful.

Mark Lambert on the importance of estate planning

Michael Wilson

Sue Whitbread

Clearly, knowing your job at a technical level is important.

Gaining qualifications like Certified Financial Planner (CFP), Chartered Financial Planner or other specialist qualifications would tick this box for you. I recommend getting them as fast as you can.

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Intergenerational planning - SyndicateRoom With a huge range of options and products for advisers to consider in the estate planning space, what makes them different?

36 Intergenerational planning - All together now Sean Taylor of Canaccord Genuity Wealth Management on why collaboration is so important to their business

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Intergenerational planning - Triple Point

A principled approach to investing is key says Triple Point as they highlight the importance of Impact Investing

IFA Magazine is published by IFA Magazine Publications Ltd, Arcade Chambers, 8 Kings Road, Bristol BS8 4AB Tel: +44 (0) 1173 258328

40 Intergenerational planning - Time Investments Keeping it in the family. Henny Dovland, Time Investments

© 2018. All rights reserved ‘IFA Magazine’ is a trademark of IFA Magazine Publications Limited.

No part of this publication may be reproduced or stored in any printed or electronic retrieval system without prior permission. All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies. Wherever appropriate, independent research and where necessary legal advice should be sought before acting on any information contained in this publication.

IFA Magazine is for professional advisers only.

Full details and eligibility at: www.ifamagazine.com

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Intergenerational planning - Oxford Capital Oxford Capital highlights an IHT planning strategy with flexibility and control

44 Richard Harvey – Alive and kicking Richard Harvey with an alternative view on estate planning

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E D'S WE LCOM E June 2018

Millennial Thunder Two-Brains Willetts, they used to call him. The current chair of the Resolution Foundation may never have quite found his niche as a Conservative government figure, but it was David Willetts’s intelligent ability to think the complex - and indeed the unthinkable – that earned him the respect of colleagues from both sides of the political divide. These days, Mr Willetts is making headlines for asking awkward questions that will keep tax planners and advisers busy for many years to come.

As David Cameron’s Minister for Universities and Science, Willetts controversially backed the near-trebling of student fee caps for millennials to a painful £9,000 a year; so it seems just a little incongruous that Baron Willetts, as he now is, is now challenging us to rethink the “unfair” generational burden that he says millennials are being forced to carry.

Last month’s release of a Resolution Foundation proposal on levelling up the economic imbalance sent the feathers flying, as only a cat among the pigeons can ever hope to do.

We should give each 25 year old a £10,000 gift, the Foundation said, so as to repair some of the inequality that has resulted from the concentration of housing wealth among the baby boomers. And how would we pay for that? Good question.

Property and IHT Partly by requiring pensioners to pay national insurance, from which they are currently exempted, said the Foundation; and partly by abolishing inheritance tax while introducing new 20% taxes for anyone who inherits more than £125,000

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in his or her lifetime - rising to 30% for recipients of £500,000 or more. That’s an oddity, for a start, because it shifts the tax burden from the estate to the recipients personally. Should we be worried? Not until we know the details, I suppose?

over £100 billion in taxes a year - which would increase the Treasury’s annual take by more than a third. And it would hit the middle-aged and especially the elderly the hardest. Which would be awkward, since the majority are Conservative voters.

The national insurance contributions for the wrinklies are intended to pay for extra NHS services, which seems reasonable in view of the steadily rising costs of supporting the elderly. But is that £10,000 gift for the 25 year olds really likely to make houses more affordable for them? Wouldn’t it just replicate the flagging Help to Buy campaign by funnelling an extra ten grand into the amount that first time buyers could afford?

And wouldn’t that just push up house prices? Wouldn’t we do better instead to fund a housing construction programme that would actually increase supply and reduce the scarcity premium on affordable housing?

Could a punitive property tax be confined to high earners?

To second home owners? To non-doms? How would it cope with properties that were owned through companies, rather than personally? How would it square with the popular notion that a home is effectively part of an owner’s pension? And what would Mr Willetts say to those who protest that a home is owned out of taxed income anyway, and that taxing it a second time would be outrageous?

We don’t know, because this is after all just a think tank document. But what’s really got the newspaper columnists worried is a dark wicked rumour of a 1.6% annual property tax that could cost the elderly far more than they could ever hope to pay during their lifetimes. As far as I can see, the 1.6% proposal came originally from one of Jeremy Corbyn’s advisers, who scared Daily Express readers with the same (unrealised) idea two years ago. Fake news, methinks?

There are more questions than answers here, and it’s hard to see Theresa May enacting any of it in the near future.

But, as we consider the issues of inheritance tax planning in this issue, the distant thunder of inter-generational grievance has unquestionably moved closer into earshot.

Michael Wilson Editor-in-Chief

Is it achievable?

But let’s suppose that the scare stories are correct. The back of my favourite envelope suggests that 1.6% of the UK’s annual housing stock value (about £7 trillion) would add up to well

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N EWS June 2018

Newell Palmer acquires HIA International (Financial Services) Ltd Newell Palmer have completed the acquisition of Coventry-based IFA, HIA International (Financial Services) Ltd. Newell Palmer featured in the May edition of IFA Magazine, as part of our Adviser Spotlight series.

This acquisition is the third completed

by Wolverhampton-based Newell Palmer in 2018, and is the 49th acquisition since the company’s inception in 1993. Gunner & Co. were the introducing broker and adviser on this transaction.

HIA International Financial Services Ltd is the advisory arm of the HIA International group, which was founded in 1996. The general insurance side of HIA International will continue operating as its own independent business and is not part of the deal with Newell Palmer.

Two-thirds of HIA International Financial Services’ client base is located in and around Coventry, Leicestershire and the West Midlands, with the remaining clients scattered across the UK. The geographical spread of the client base is ideal for Newell Palmer’s Nuneaton branch, which services clients all across Warwickshire.

of service. I wish them both well with their retirement plans and we look forward to working with them both during the transition period.”

Nick Newbold, Managing Director of HIA International, said: “Increased legislation as well as regulatory changes affecting the Financial Services sector in recent years has made it increasingly difficult for a relatively small firm such as ours to continue to offer the levels of service we feel our clients deserve.

“When we spoke to Kevin, around two years ago, and started our discussions with Newell Palmer we very quickly came to the conclusion that joining forces with NP was the right move for us and our clients, and we are very much looking forward to working with them.”

If you’d like to know more about selling your business to Newell Palmer, contact Louise Jeffreys at Gunner & Co. Louise.Jeffreys@gunnerandco.com

This latest acquisition adds £80 million in client assets to Newell Palmer’s funds under management, as well as growing their employee benefits client portfolio, with the addition of 60 group schemes of differing sizes; the largest being a luxury UK retail brand with over 1,000 employees.

The completion of the HIA International Financial Services deal now takes Newell Palmer’s funds under manager to in excess of £2.1 billion, which will be further boosted during 2018 upon the completion of further planned acquisitions.

Speaking about the purchase, Newell Palmer Finance Director, Kevin Homfray (pictured), said: “HIA is an excellent acquisition that will aid the expansion of our Nuneaton branch, and should enable us to grow our employee benefits portfolio.

“Gary Heath and Robbie Eliot have given their clients first class advice over the years and I want to ensure that Newell Palmer bolster this and continue to provide a very high level

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N EWS June 2018

EIS Investment company announces end of latest stage in film project Ironbox Capital have just finished filming their latest EIS funded film, “Ravers” – Part of their “Alive in the morning” portfolio.

As we focus this issue on intergenerational financial planning and looking at IHT, it’s always good to hear of a project successfully on track..

Raimund Berens, Chief Executive at Iron Box Capital said ‘we invest in films that are carefully selected for their commercial potential. But for us films are much more than just a commercial vehicle. We want our investors to enjoy the whole experience. We offer them the opportunity to visit the set, meet the actors, go to the premiere, and possibly

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even have a part in the film. There is no other investment that gives an experience like this.

‘Of course we get people investing for the potential profits from what we do, but some invest because they love the world of film and want to be part of it. Then there are those who want their children to enjoy the experience’.

‘We focus on the most profitable genres of film, currently animation and horror movies, where there are clearly defined audiences’ Look out for the release of “Ravers” – a comic horror film based around an illegal party and a zombie-inducing energy drink!

We wait in anticipation (behind the sofa)…

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BRIAN TORA June 2018

Should we be worried about bonds?

As monetary tightening beckons, what might this mean for investment in bonds and bond funds?

Brian Tora considers some of the issues involved When the US Ten Year Treasury Bill yield breached 3% for the first time in over four years last April, American equities did not take too kindly to the news. The S&P 500 fell by more than 1.4% that day – hardly panic stations, but a clear indicator that higher yields would inevitably impact on share values.

And, of course, higher yields in the fixed interest space lead to falling bond prices. Given the amount of money that a widening array of bond funds have attracted in recent years, watching the likely course of interest rates and fixed interest yields is now essential for advisers and their clients.

Interest rates were held at rock bottom levels by several leading developed nations for the best part of a decade as a defence against continuing global economic retrenchment in the wake of the financial crisis. This era of cheap money was accompanied by additional monetary easing methods, in particular, so-called quantitative easing (QE), whereby central banks printed money with the blessing of governments. Most usually this was accomplished by the central bank buying bonds from banks to free up their lending capability. This resulted in a ballooning of central bank balance sheets and created concern that the cash released was finding its way into financial assets, fuelling the long bull market that has yet to end.

The road to nowhere

source of cheap financing and unwinding the bloated central bank balance sheets will have consequences that are hard to predict accurately, but money will inevitably become tighter. The knock-on effect on interest rates and bond yields is also difficult to forecast, though some comfort may be taken from the likelihood that the direction and speed of travel must be constrained by how economies are coping with these tougher conditions.

Bond funds have been hugely popular There was quite a flow of investors’ money into bond funds in the wake of the financial crisis. They were viewed as less volatile and, of course, providing superior income returns. Investment styles proliferated, with a variety of approaches being adopted.

Some funds achieved the accolade of generating both capital appreciation alongside good income yields but, as with equity funds, they quickly proved a group of sectors that could deliver widely different experiences for the investor.

can be achieved from equities and that which is generated from the government bond market. This is important because for many years it was a reverse yield gap that prevailed in this country.

The yield gap Until shortly after the Second World War, equities yielded more than gilt-edged securities on average, reflecting the greater degree of risk they carried. It was primarily the move by pension funds in the 1950s to diversify their assets into ordinary shares that created the reverse yield gap. The rationale was simple. Well managed companies could increase their dividends regularly, whereas fixed interest securities were, as the name suggested, providing a fixed rate of return. Moreover, publications, such as the Barclays Equity/Gilt Study which looked back to the end of the 19th century, could demonstrate that over any reasonable period, such as five years, equities would outperform gilts on a total return basis.

How such bond funds will hold up in what many would consider a more normal interest rate environment is a moot point. It is worth recalling that a yield gap remains here between what income

But just as the long period of near zero interest rates has come to an end in the US and will finish elsewhere too, so QE is running out of road. Withdrawing this

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BRIAN TORA June 2018

In more recent years, these long held theories have taken something of a battering, with bonds benefitting from the dramatic fall in interest rates and equities suffering from more volatile conditions and financial uncertainty. A yield gap has been re-established, though it may yet prove a transient experience for investors. And bonds have outpaced equities over some five year periods.

Looking ahead Might this continue?

Somehow I doubt it, though it is a brave investor who says it could never happen.

Inflationary pressures are rising in some parts of the world, even if cost of living increases are subdued in others, such as the single currency zone in Europe, as an example. The return to a more normal interest rate environment is unlikely to be swift or even across the globe.

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Witness the way in which US government yields are rising, while those here and on the Continent are not.

Recent economic data gives support to the belief that interest rates and bond yields are likely to rise slowly, if at all. The first quarter of the current year proved disappointing for both Europe and the UK in terms of the level of growth achieved. Sterling suffered as a less aggressive approach to interest rate management looked in prospect for the Bank of England, while the European Central Bank maintained a steady, loose monetary policy. Of course it could, and probably will, change over time, but for the time being bond holders look like being able to take a sanguine look towards the future.

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E D'S RANT June 2018

Dollar Wars This spring’s sharp rise in the mighty dollar has caused major trouble for the world’s markets, says Michael Wilson. But has Donald Trump scored an own goal? And if so, does he know it yet?

Right, here’s a question for you.

When was the last time you heard a great nation’s leader extolling the manifold virtues of having a strong national currency as a symbol of a great national economy?

OK, a clue. I’ll start you off with Margaret Thatcher, who thought that a strong pound was a symbol of a strong and dominant Britain.

And I’ll also give you a few EU economists who took a brief pride in the vigorous way that the euro overtook the dollar during the early noughties – mainly, they felt, because it demonstrated a growing dominance of eurodenominated bonds vis-a-vis the US dollar, and thus seemed to confirm that they were onto something good. But for most of the last thirty years, the objective of strong trading economies everywhere has been to keep the value of their currencies as low as reasonably possible.

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There are three reasons for that: •

It helps to make your exports more affordable, so that other countries will buy more of your goods.

•

It encourages your own citizens to buy homemanufactured goods rather than imports.

•

It makes it cheaper for foreigners to invest in your country’s businesses, so that with a bit of luck the trickle-down effect will benefit all your people.

“This time it’s different….”

All things considered, then, you’d expect that President Donald Trump’s Republican Administration would be in favour of a weaker dollar, because it has the power to transform a current account deficit into something closer to a surplus. (Or a surplus

into a bigger surplus.) Japan has been manipulating its currency downwards for three decades, after all; China has done likewise, according to Mr Trump.

And Germany, if you believe the Trump rhetoric, has been wangling an unwarrantably cheap currency ride ever since the late 1990s, when the President insists that the conversion rate from the old Mark into the current Euro was negotiated at a criminally undervalued exchange rate, so that Germany’s cost of production has been outrageously understated ever since. All of which, he says, is why Europe’s trade policy stinks.

Discuss, as they say. But, in a peculiar way, maybe it explains Mr Trump’s current position, which is that a strong dollar is good for America’s trading

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E D'S RANT June 2018

economy, and not a cause of problems. Excuse me while I laugh, because it was only as recently as 24th January that his Treasury Secretary Steven Mnuchin was still telling the Davos meeting that America did indeed want to see the dollar going lower. Only to find his boss humiliatingly contradicting him the very next day: Mnuchin was still learning the ropes, the President said, and he wanted to see the dollar getting “stronger and stronger”. A currency “should be based on the strength of the country,” he added.

Thus winding back the fiscal wisdom by some forty years.

That’s an important change of policy direction, as you’ll probably agree. Whether or not it will last for six years or six months or six weeks is something that nobody can properly tell in the volatile age of Trump – but, on the face of it, a muscular greenback seems likely to do as much collateral damage to the United States as it does to America’s international competitors. What it will also do, meanwhile, is pitch the world’s assumptions about fiscal integrity and sound fiscal

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policy into unknown territory.

No wonder so many fund managers are getting perplexed.

Partly, it’s our own fault.

We’ve had many decades in which to get used to the accepted balances between currencies, inflation and budget overshoots, and the grass has probably grown over our complacency, and so we find ourselves short of answers when somebody changes the rules. By throwing a punitive trade policy actively into the mix, President Trump has shifted the parameters in ways that have yet to be seen. This year’s heavy weather for some emerging markets (not all, of course) is being seen as an expression of that uncertainty.

There are several reasons for this, of course, and we’ll look at some of them shortly.

But there’s ’s another thing that’s changed over the years, apart from the resurgence of competitive China and the apparent abandonment of budgetary restraint in the United States. America is now a shale-oil superpower, with very nearly enough hydrocarbon production capacity to be selfsufficient. (And, you may recall, the ability to promise Britain

that if Vladimir Putin ever tried to turn off the Siberian gas taps it would be able to supply liquefied petroleum gas in lieu.)

The thing is, all of this matters - if only because it adds to the gravitational pull of the world’s traditional currency of last resort.

And, the Prez hopes, because it gives Washington yet another lever with which to influence the course of international decision-making. In the aftermath of Trump’s earlyMay withdrawal from the Iran nuclear deal, that attractional power to influence policy suddenly seems a little more troubling than it did previously.

Good news, bad news You might of course argue, with good reason, that America would have been very likely to get a stronger dollar this year regardless of whatever the President happened to want. By the end of last year, it was already becoming apparent that US economic growth was driving up wages and unemployment down (3.9%) to the point where the Federal Reserve would need to raise interest rates pretty soon, just to stop an incipiently inflationary economy from running away out of control.

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E D'S RANT June 2018

Sure enough, it was the announcement of some truly excellent employment statistics in January that pitched the US equity scene into a 10% correction that same month.

The logic of the correction, you might recall, was that the impending rise in US interest rates would make it harder for US companies to invest and expand; it would also deter consumers from buying new products, and when they did buy those goods they’d suddenly find that foreign products were cheaper than US products.

More to the point, however, a rise in US bank rates would immediately feed into higher bond yields, which need to compete with cash; and that in turn would impact on corporate dividends, which also need to compete with the other two; and that the only likely result would be a fall in both bond prices and US share prices.

Both of which we have seen in ample abundance. The benchmark US Treasury bond was nudging 3% by the time we meant to press – up from 2.4% at the start of 2018, or 1.8% when Trump was elected back in November 2016. And the S&P 500 was down 5.5% from its January peak. A pattern which has been echoed meanwhile in most other western markets.

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The international dimension The 3% bond yield development is not all bad news, even considering that US inflation is at 2.4%. So what if there are clouds gathering over the sustainability of US economic growth, some say? Washington’s 2.8% projected growth for this year is still one of the highest in the developed world. (You’d need to turn to China, India, the Philippines, Indonesia or some parts of Turkey and Eastern Europe to beat 4%, and some of those come with much higher political risks.) And even if Washington’s leadership appears chaotic, it still has its attractions for a serious investor with serious responsibilities to meet. (And a mandate to hold a sizeable proportion of a portfolio in fixed interest.)

I am indebted to the anonymous commentator in the Financial Times who observed that high US bond rates are not without their advantages even if they do mean that bond investors have taken a bath recently. If you had the choice between a 10 year Treasury bond paying 3% and an equivalent Italian bond paying 1.8%, he asked, which would you be inclined to go for?

There are alternatives, of course.

You could get a 10% yield from Brazil, or 7.5% from Mexico or India or Russia, but that would be strictly at your own political risk. And at the other end of the spectrum, a negative

real yield from strong-andstable Germany or Japan or even France wouldn’t exactly make you feel rich either.

Could you shore up your failing returns by turning to high yield and junk bonds instead?

Indeed you could, but it’s been apparent for some time that the flows into high yield have been slowing and turning toward reverse. And that, of course, may be precisely because Trump’s trade posturing has cast a real uncertainty over the fortunes of Latin America in particular.

Still King of the Hill On balance, then, it would be foolish to dispute that being the world’s traditional reserve currency has its advantages for the dollar. Universally stable, and endlessly liquid and fungible, and with an economy that is spewing shale oil, it stands in stark contrast to (say) near-bust Argentina, which was obliged in May to raise its central bank rate abruptly from 30.25% to 40%, just in order to hold its currency on the straight and narrow. And to stop an egregious outflow of hot money. (Informed opinion says that the 40% rate is unsustainable at a time of “only” 25% inflation, not least because it will kill investment and bust leading companies.)

Which brings us onward, or rather back, to our second, more contentious assertion. Which is that President Trump’s bullish,

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ED'S RANT June 2018

The 3% bond yield development is not all bad news, even considering that US inflation is at 2.4%

ebullient and often bird-brained misunderstanding of fiscal and trade economics shouldn’t hold us back from comparing the self-evident strengths of the US with the less self-evident virtues of alternatives such as catastrophic Russia or stagnating Japan or the rapidly flagging Eurozone.

Where does that leave everyone else?

And it’s here that I want to address another fallacy. Namely, that the soaring dollar spells death and disaster for the home economies of rival currencies, and for what we loosely call “emerging markets” in general.

Oh come on now, you can’t have missed it. “Strengthening dollar rattles Mexican bonds,” say the headlines. “Managers ponder Asian exposure as US inflows soar.” “Clouds gather over negative yields in Japan.” And so on.

But upon closer inspection, the trouble areas seem much more restricted than you might have supposed. Look away from Latin America - and avert your gaze from Russia and plummeting Turkey - and

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you may notice that things are actually a whole lot less unpleasant out there than you think.

We may have heard Donald Trump thundering away about an imminent trade war with China, but even he is aware that behind-the-scenes pragmatism must rule the day.

The most pragmatic of those assumptions, of course, has to be that it will be China that coughs up the cash to buy all the Treasury bonds that Mr Trump’s tax reforms will require.

And rather a lot of the privatesector finance for all those public US construction projects (roads, airports, railways and so forth) which Trump had originally promised to fund with state money, but which is now being farmed out to private sector investors instead.

If China decides not to bail America out, the logic goes, then Washington runs the risk of losing bond investment in a sea of unaffordable debt. Who knows, the extreme thinkers ask, it might even be necessary one day to “reschedule” some of that unaffordable bond debt in a way that doesn’t make it look too much like a Cyprus-style pseudo-default.

(Remember that? Shudder.)

To which I can only say phooey.

China holds well over $1 trillion of US debt, and that debt forms part of the backing and underpinning for its own

currency, the renminbi yuan.

Why would Beijing ever want to do anything that might undermine the value of its own foreign holdings? One of the really excellent things we can say about global governments holding each others’ bonds is that it binds them together in a web of “pragmatic” mutual self-interest. If that’s the shape of a more secure future, I’m all in favour of it.

Which is why I tend to side, a little reluctantly, with the über-bull Ken Fisher, who has been insisting for a couple of years now that nothing Trump can do will inflict permanent damage on the markets, because markets run on numbers and presidents run on campaigning bluster, and because pragmatism will always exert its corrective influence in the end.

But I’m guessing that Mr Fisher must be rueing his ebullience just a little bit, now that the President is coming good on some of his more extreme campaign promises. And that realisation, together with Trump’s peculiar ideas about how a trade and fiscal economy works, is enough to signal some caution. This is the twilight zone, where the usual cosmic rules don’t always apply. Will things change as the November mid-term elections approach? A year ago I’d have said definitely.

But suddenly nothing seems quite so definite any more.

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BETTE R BUSI N ESS June 2018

Better Business The three-legged business stool Why do some financial planners enjoy greater success than others? Brett Davidson, Founder, FP Advance suggests a process which you can use to ensure that not only do you become more effective but happier and more fulfilled with life too one focused on planning and coaching their clients; we need to become masters of relationship management.

Helping people with behavioural and emotional issues around their financial future is the one piece of the equation that can’t be Robo’d.

Three is the magic number If you currently run your own Financial Planning firm, or you aspire to do so in the future, then being a master of relationship, planning and coaching skills is merely one step on the journey.

I think of it like a three-legged stool.

The future for advisers has never been brighter, although in a changing world it doesn’t always feel like that.

New technology sees us on the brink of some of the biggest developments in the nature of work across all careers and professions.

Ours is no different.

With investment advice continuing to be demystified and commoditised, the only real future for advisers is

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First leg – Knowledge

Do you know your onions technically speaking?

Let’s be honest, it can take you 10 or 15 years of hard work to become really knowledgeable as an adviser.

Whilst you do need to know your onions, that’s a given in my opinion, there’s more to it. As Nick Murray says in his book The Excellent Investment Advisor:

“Knowledge can never get you where you want to go. The more you know, the less of what you know you can communicate to normal people. That’s the conundrum: as your store of knowledge compounds, the percentage of what you know that you can usefully – or even comprehensibly – tell folks approaches and then arrives at the vanishing point.”

Clearly, knowing your job at a technical level is important.

Gaining qualifications like Certified Financial Planner (CFP), Chartered Financial Planner or other specialist qualifications would tick this box for you. I recommend getting them as fast as you can.

However, don’t fall into the trap of thinking that achieving these financial planning qualifications will make you the finished article.

Second leg – Interpersonal Skills

Can you skilfully question, listen to, and engage with clients? This skillset can take you a long time to acquire too, just like knowledge.

However, alarmingly, you can get so good at it that you might start taking shortcuts and cutting corners, which can actually set you back if you’re not careful.

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BETTE R BUSI N ESS June 2018

Doing courses with the gurus, like George Kinder, Bill Bachrach or Maria Nemeth, can dramatically improve your skill levels when interacting with clients. A 5-day course with George Kinder will change your life forever in a very practical way, and elevates your skills well above those of most advisers.

Third leg – Business Skills

Whilst knowledge and interpersonal skills are central to the offering, the biggest hurdle for many great advisers is becoming a skilled business person; and this is the third leg of the stool for my money.

If you know your stuff and can communicate brilliantly with your clients, you are going to be successful and generate a lot of new business and new client relationships.

That type of success brings you a whole new range of business-related challenges: •

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Strategic challenges: Where are you headed?

What matters most to you personally? What’s your higher purpose in building this business?

Management challenges: How do you attract, retain and develop a great team?

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Technology challenges: What types of technology will improve your productivity and improve the client experience. And, just as importantly, what won’t?

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Financial challenges: How do you grow profitably and sustainably? How do you fund growth when you are successful?

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Leadership and personal effectiveness challenges: How do you need to behave as a leader in your business?

How can you increase your personal productivity as the demands on your time grow?

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A two-legged stool isn’t very stable, so it’s vital that you develop good business management skills if you want a great business. A tiny percentage of business owners seem to naturally possess these skills from birth. Most have to learn them on the job.

Can you manage?

I know in my own career the business management piece was not something that was covered at all. I was fortunate to begin my career in a business that tried to manage itself in a business-like way, although looking back it was still very poor. It’s only in the second half of my career that I’ve discovered and learned better business management skills.

I’m convinced that if advisers learned these skills earlier in their own business careers they would unleash their full potential both in themselves and their business asset. If you’re a younger adviser coming through, then I can’t stress highly enough the need to learn this set of business management skills.

Space to create The business management piece is also vitally important to anyone with a big dream for their business, or with hopes of being an innovator.

Innovation requires some time and space to: •

Think

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Plan

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Trial

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Fail

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Reiterate until you get it right

To do all of that you need to be ‘on it’ in a business management sense. You need to plan so that the run-ofthe-mill stuff gets done in the shortest time possible, whilst still delivering an amazing outcome for the client. That leaves you with the innovation and development time you need.

The great and the good Do you have to do any of this? Of course not. However, if you really want to be great in this profession (and I know many of you reading this do want to be great), then these three ‘legs’ are the important foundations for your business.

To progress in a consistent, stable and profitable way, whilst having a load of fun and performing a massive social good as well, is the key.

That’s why I love this business. You’ve got to be the complete package.

Brett is the Founder of FP Advance, the boutique consulting firm that helps financial planning professionals advise better and live better.

He is recognised as one of the leading consultants to financial advisers in the UK. Professional Adviser magazine has rated him one of the Top 50 Most Influential people in UK financial services on three occasions.

You can follow Brett online and via social media: Twitter: @brettdavidson Facebook: www.facebook.com/FPAdvanceLtd LinkedIn: www.linkedin.com/in/davidsonbrett Website: www.fpadvance.com

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I NTRODUCTION ESTATE PLAN N I NG

June 2018

Intergenerational Planning An IFA Magazine special focus with a range of ideas to help advisers and paraplanners to maximise the value of clients’ estates which can be passed on to the next generation

Of course, most clients’ priorities will usually be to make sure that they can live the life that they wish to live without running out of money – to gain financial security and the peace of mind which comes with that.

However, another important priority for many clients when seeking professional advice is to ensure that as much of their estate as possible is passed on to their intended beneficiaries after their death. This isn’t always the case though. In other scenarios, some clients may not have fully considered what they want to happen after their death and it serves as a major topic of discussion between adviser and client to establish what those wishes actually are.

have been established. When it comes to estate planning strategies, advisers are often faced with conflicting objectives so it’s essential to ensure suitability as well as the best chances of meeting all of them. Ensuring that effective Wills and Powers of Attorney are in place is an excellent starting point. Beyond this, consideration will likely be extended to the use of trusts, use of gifts and gift allowances, use of tax efficient investments, use of life insurance and a myriad of other useful options once a cash flow forecast has revealed how much money the clients are likely to need during their lifetime to meet their own objectives.

One size doesn’t fit all

With Inheritance Tax charged at a hefty 40% on the value of chargeable assets above the nil rate band, a calculation of the likely tax impact should unforeseen

With so many different planning options available to advisers, all with different benefits and risks, it’s important to develop a multi strategy approach once the objectives

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It’s an optional tax

circumstances happen, is often a major shock for clients when they see the numbers involved.

The sooner that planning can take place the better – leaving it too late is a common problem which poses significant problems for many clients and advisers.

With some sensible financial planning, then the worst excesses of this tax can be mitigated successfully and clients’ minds put at rest that they have done what they can to ensure that their wishes are met after their death.

In this edition of IFA Magazine, we’re grateful to all our expert contributors, who between them have given many excellent ideas as well as background information. It is not possible for us to deliver a fully comprehensive analysis of all the options within a single edition of IFA Magazine. However, we can bring you the perspective and insight of a range of different people in the hope that you will find it useful.

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HELP YOUR CLIENTS LEAVE MORE TO THEIR LOVED ONES. AND LESS TO THE TAX MAN.

At Oxford Capital we have been making tax-efficient investments since 1999. Whether your clients are thinking long-term or worrying they have left estate planning too late, our range of BR and EIS-qualifying investments could help. We can quickly deploy capital into investments that should fall outside of their taxable estate after two years. EIS investments also qualify for 30% income tax relief, capital gains tax deferral and tax-free gains.

TO FIND OUT MORE ABOUT HOW WE CAN HELP YOU AND YOUR CLIENTS, CALL US ON 01865 860760 OR VISIT OXCP.COM

This financial promotion is issued and approved by Oxford Capital Partners LLP (“Oxford Capital”), 201 Cumnor Hill, Oxford, OX2 9PJ. Oxford Capital is authorised and regulated by the Financial Conduct Authority (registered number 585981). We invest in unquoted securities. Your clients’ capital is at risk and they should not invest if they are not willing to bear this risk. Tax benefits depend on individual circumstances and tax legislation is subject to change. No reliance is to be placed on the information in this document when making an investment

TH E USE OF TRUSTS ESTATE PLAN N I NG

June 2018

The use of trusts Peter Legg of IHT Planning Matters Limited examines, at a time when financial planners and their professional brethren in the legal and accountancy worlds are increasingly faced with them, the background and some definitions for UK trusts What is a trust?

A trust is a legal relationship where an individual (the “settlor”) transfers assets to a person or persons (the “trustees”) who hold and manage those assets for the benefit of others (the “beneficiaries”) named by the settlor.

In simple terms, it is a way of gifting assets while retaining an element of control over who will benefit and when the benefits – either capital or income or both – are paid over (if ever).

In order for individuals to establish a valid trust, they must be of sound mind. There are also three conditions which must be satisfied. These conditions are known as the three certainties: • Certainty of intention – it must be clear that the settlor intended to create a trust; • Certainty of subject – the assets that are to be transferred into the trust must be clearly identified;

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• Certainty of objects – the beneficiaries of the trust can be clearly identified, either by name or classification.

Where the trust is to be created by an individual’s Will, it must also meet the requirements of section 9 of the Wills Act 1837. The Will needs to be: •

Made in writing;

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Signed by the testator or testatrix, in the presence of two independent witnesses.

As well as express trusts (where the settlor expresses his or her intention to create a trust), it is also possible for a trust to be created by the operation of law, for example, where assets are left under the law of intestacy to a minor child.

What are the benefits of settling assets in trust?

There are various different reasons why an individual may choose to set up a trust. For example:

Inheritance Tax - By gifting assets into a trust, an individual can for Inheritance Tax purposes reduce the size of their potentially taxable estate on death. Transfers will normally be outside the estate after seven years. Such a transfer to trustees is not, for Inheritance Tax purposes, treated as a potentially exempt transfer but as a chargeable lifetime transfer, with a 20% Inheritance Tax liability on the excess over £325,000 by each settlor.

It should be borne in mind that the settlor has effectively gifted his/her assets and it cannot be used for their own benefit; otherwise it may be a gift with reservation of benefit (though there are trust structures where the settlor can in certain instances retain access to income but alienate access to capital).

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Control over assets - The settlor may wish to prevent control of the assets from passing outright to the intended beneficiary for various reasons, for example if the beneficiary is a child or prey to unwelcome influences.

Speed of payment - If assets are placed in a trust, the benefits on death from financial products such as insurance policies can be paid out immediately on production of a death certificate.

There is no need to wait for Grant of Probate or Letters of Administration as the trustees are the legal owners.

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as opposed to an individual, cannot die. However, corporate and other professional trustees will charge for their services.

Most trust deeds automatically include the settlor as a trustee but this does not have to be the case. Consideration should always be given to appointing at least one additional trustee. On the death of the last surviving trustee, the role of trustee will pass to that deceased trustee’s executors or administrators.

These individuals may not be the settlor’s preferred choice to act in this role.

Who can act as a trustee?

What are the trustees’ responsibilities?

A trustee can be an individual or a corporation. Provided that an individual is of majority age and is of sound mind, they can act as trustee.

The role of a trustee can be an onerous one. The trustees are the legal owners of the trust assets and their responsibilities include:

When choosing trustees, the settlor should look to appoint trustees whom they feel will best carry out the settlor’s intentions. A trustee may also be a beneficiary of the trust but consideration should be given to possible conflicts of interest before appointing such a trustee.

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Ensuring trust assets are registered in the name of the trustees;

A corporate trustee, such as one offered by a Bank or specialist Trust Company, will of course be impartial. They will also have specialist expertise in this field and being a corporation

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•

Complying with the terms of the trust deed;

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Acting impartially between all beneficiaries;

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Distributing the trust funds in accordance with the provisions of the trust document;

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Keeping accounts;

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Completing the trust self assessment returns;

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Paying any tax due;

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Investing trust funds.

The Trustee Act 2000 includes a statutory duty of care which the trustees must adopt when investing trust funds or delegating trustee duties.

What investment powers do trustees have?

Most modern trust wordings include provisions specifying the investment powers available to the trustees. Typically these allow the trustees to invest in a wide range of investments such as shares, deposits and property.

Where the trust wording does not include any specific powers of investment, the trustees will be subject to the statutory investment powers contained within the Trustee Act 2000 or its equivalents in Scotland and Northern Ireland: the Charities and

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Trustee Investment (Scotland) Act 2005 and the Trustee Act (Northern Ireland) 2001.

These three acts replaced the Trustee Investments Acts 1961 which imposed a more restrictive set of investment powers and excluded investments such as life assurance and land. Trustees may now make an investment of any kind as if they were absolutely entitled to the assets of the trust. However, any restrictive powers of investment contained within the trust will continue to override the statutory provisions.

What duties and investment powers does the Trustee Act 2000 impose on trustees?

The Trustee Act 2000 introduces statutory powers of investment for trusts which do not contain express investment powers. It also imposes a duty of care on trustees and applies to trusts already in force, not just those created since its introduction.

There are three main aspects of the Act: Power of investment - We have commented on this power above.

When selecting investments, trustees are required to have regard to the “standard investment criteria”. Investments should be suitable and diversified, taking into account factors such as:

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The size of the fund to be invested;

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The risk profile of investments;

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The need to produce an appropriate balance between income and capital growth;

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The requirement to meet the needs of the trust; and

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Any relevant ethical considerations.

In addition, there is also a duty to undertake a periodic review of the investments held and to obtain and consider proper advice when doing so.

The requirement to carry out periodic reviews formalises the judge’s comments in the case of Nestle v National Westminster Bank PLC (1993). It was argued that the bank (as trustees) had failed to carry out periodic reviews of the trust investments, creating a loss. Whilst the judgement favoured the bank on the basis that no loss could be established, it criticised them for their “incompetence and idleness” in failing to conduct periodic reviews. As a loss can be difficult to establish, the Act therefore imposes the duty to carry out periodic reviews. Doing nothing is no longer an option for trustees.

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TH E USE OF TRUSTS ESTATE PLAN N I NG

Duty of care - Trustees have always been subject to general duties of care, established largely through case law. For example, they should act only in the best interests of the beneficiaries of the trust. They must treat all classes of beneficiary fairly and, in particular, where some beneficiaries are entitled to income and others to capital, they must invest to achieve both income and capital growth. At common law, the standard of care expected from the trustees is that of the ordinary prudent man of business. Trustees who are paid for their services as professional trustees are expected to meet a higher standard of care than other trustees.

The Act describes the new duty as that which can reasonably be expected of a person carrying out their duties, having regard to their specialist knowledge, experience or professional status. The trustees have to show such skill and care as may reasonably be expected in the circumstances. For example, a higher standard of care would be expected in relation to the purchase of stocks and shares from a trustee who is an investment banker than from a trustee who has absolutely no experience in that area.

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Delegation of duties - The third major change under the Act is there is now a general power to trustees to appoint an agent to carry out the duties of the trust. The main functions which the Act does not allow to be delegated to an agent are: •

Decisions as to how the assets of the trust should be distributed;

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Whether payments should be made out of income or capital;

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The appointment of a trustee.

The Trustee Act 2000 applies only to England and Wales.

However, similar legislation applies in Scotland and Northern Ireland: the Charities and Trustee Investment (Scotland) Act 2005 and Trustee Act (Northern Ireland) 2001.

What is a breach of trust?

A breach of trust may occur when a trustee fails to comply with duties imposed upon him or her by law or the terms of the trust deed.

Some common examples of breach of trust include:

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Where a breach of trust has occurred, the beneficiaries may decide to take legal action against the trustees personally.

The trustees may be liable to restore the trust property or pay compensation for the breach.

Some trust definitions The “settlor(s)” – the person or persons who establish the trust and transfer selected assets to the trustees.

The “trustees” – the persons or corporation the settlor selects (and which can include the settlor too) to administer the trust funds in accordance with the trust provisions and protect the trust assets.

The “trust fund” – the assets transferred to the trustees by the settlor. This is likely to be an initially modest sum to get the trust established and will inevitably be followed by further transfers of assets as the settlor decides.

The “trust period” – the length of time (usually, in modern UK trusts, 125 years) that the trust can continue although it is likely to be terminated – by dint of circumstance, need, fiscal implications, etc – sooner than that.

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Failure to invest the trust funds in an authorised manner;

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Failure to correctly distribute the trust assets;

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Making an unauthorised personal profit from the trust;

The “beneficiary/beneficiaries” – the beneficiary or class of beneficiary that can benefit from the trust funds, either by receiving income arising on the trust funds or capital, depending on the terms of the trust deed and the trustees’ discretion.

•

Failure to register trust property in the names of the trustees.

Many settlements have power to add to the class of beneficiaries but that cannot extend to the settlor or

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their spouse (but it can extend to a widow or widower) or anyone else who has added assets to the trust (or their spouse).

The “income arising” – this will either be directed to be paid (with no discretion on the part of the trustees) to a specific beneficiary or beneficiaries in whatever shares the trust deed directs or is alternatively (depending on the type of trust it is) distributable entirely at the trustees’ discretion around a class of eligible beneficiaries depending on their needs or else can be accumulated and added to the capital.

A power to advance capital – in most trusts, the trustees are given power to advance up to the whole of the capital to a beneficiary or beneficiaries at the trustees’ discretion, possibly bringing the trust to an end.

The “ultimate devolution” of the trust funds – every trust must declare who the (remaining) capital will pass to at the end of the Trust Period. There can be no uncertainty about this (many settlors will add charity as the ultimate beneficiary if all other beneficiaries have died).

The main “types” of trust – there are a wide variety of trust types but the most frequently used are: • A “discretionary” trust, where the allocation of any income arising – including the power for the trustees to withhold it from a particular beneficiary and accumulate it – is entirely at the trustees’ discretion.

The trustees are likely to have a power to advance up to the whole of the capital too but that is common in most types of trust;

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• An “interest in possession” trust, where there is no such discretion over the allocation of income. The trustees are directed to pay the income arising to a named beneficiary or named beneficiaries (either equally or unequally) such that that beneficiary or beneficiaries have a right as against the trustees to all income arising on the trust funds.

The use of trusts in a tax planning exercise The commentary above concentrates more on the legal as opposed to the fiscal implications of a trust. The latter might be the subject of a separate article. In short, however: For Capital Gains Tax, a transfer of assets to trustees would be treated as a chargeable event.

The net increase in value from the date of acquisition of the transferred asset to now would be the chargeable gain. The settlor’s annual Capital Gains Tax exemption of £11,700 (unless already used) would reduce the chargeable gain but this would then be payable at 20% or at 28%.

The tax payable could be significant and would be payable in one sum by the settlor and would have to be paid – no sale

having occurred at the time of the transfer which would have put the settlor in funds to meet the liability – out of his or her other resources or with monies borrowed and secured on the other assets he or she retains.

However, it is presently possible, by transferring assets to a trust, to defer the Capital Gains Tax charge which would otherwise arise by taking advantage of hold over relief under section 260 of the Taxation of Chargeable Gains Act 1992 (hereafter “TCGA”). In this way, the trustees would acquire the transferred asset at the settlor’s own acquisition cost and no attendant Capital Gains Tax charge would be payable.

The gift of the transferred asset to the trustees would also represent a chargeable lifetime transfer for Inheritance Tax purposes (the reason the Capital Gains Tax liability can be deferred is to avoid a double charge to tax on the same disposal). The liability would be calculated at the 20% lifetime rate of Inheritance Tax on the excess over the available taxable threshold (£325,000). We doubt the values usually provided by the settlor will bear the weight of this calculation and more authoritative valuation advice will need to be taken.

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If the settlor feels this attendant Inheritance Tax cost is too great (notwithstanding it might be capable of being “staggered” over ten years), he or she can merely reduce the level of his or her transfer.

This liability would be a case of pain today for significant gain tomorrow (as stated, a potential Inheritance Tax saving) and would be payable by the trustees rather than by the settlor himself or herself and might be spread over ten years by annual instalments (of one tenth of the liability each year) and these instalments could be funded by the settlor by transfer of unspent income or out of his or her annual Inheritance Tax exemptions.

The settlor will want to take more considered valuation advice on the whole valuation issue. It puts an onus of responsibility on the settlor now to produce defensible values of the transferred asset; we would strongly recommend a second opinion be taken on the values adopted given the adverse tax consequences of proceeding on

values which prove, in negotiations in due course with HMRC, to be very much on the low side. The values which are advised must be capable of passing muster with HMRC in due course.

There is a possibility that, by proceeding with the lifetime gift to the trustees, the settlor could suffer a disadvantage. This would be on the basis that he or she made the gift and then failed to survive the gift by seven years. There would be no elimination of the capital gain on the donor’s death for the transferred asset and the gift would need to be taken into account to calculate the Inheritance Tax implications of that death.

It is of course a difficult issue to call and it is the settlor’s decision.

One further disadvantage is that every ten yearly anniversary (should the trust continue that long), there would be an additional charge (at 6% on current rates) on the value of the trust assets held over and above the then tax free threshold.

These liabilities can be calculated more precisely in due course. It would be our view that the option of a lifetime gift of the transferred assets to the discretionary trust – with a lowering of the eventual Inheritance Tax charge – is an infinitely better way forward than doing nothing, where an eventual Inheritance Tax charge

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of significant proportions could arise on this asset as part of the settlor’s potentially taxable estate.

For Income Tax purposes – should any income be produced on these assets – trustees are assessed at different rates depending on the level of income. The first £1,000 of income in any tax year – known as the standard rate band – will generate only basic rate tax at 20% on untaxed income such as rental. Above that, income is assessed in the trustees’ hands at 45% (2018/2019 rate).

Were the trustees to then apply income to any of the eligible beneficiaries as primary beneficiaries, the trustees will give those beneficiaries a voucher indicating that they had received income which had already borne a higher Income Tax liability – even though the first £1,000 of trust income only suffers tax at 20%.

These factors would have to be borne in mind when calculating the amount to distribute to/apply for which particular beneficiaries.

They will have received income which has already borne a higher rate of Income Tax and if any are a non or basic taxpayer, this will result in a tax repayment. Thus in effect HMRC will be contributing in no small part to whatever benefits are taken by such beneficiaries.

These Notes are intended for guidance only and should not be relied upon as a definitive or exhaustive analysis of the law on the subject. We are not qualified to provide such an analysis.

IHT Planning Matters Ltd. Contact details.

Telephone: 0800 023 2449 Mobile: 07717 740055 E-mail: peterlegg@ ihtplanningmatters.co.uk

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ESTATE PLAN N I NG

Two hidden conkers to beat the old chestnut Intergenerational planning tips from the coalface – tactical talking from Damian Davies, The Timebank

Helping our clients to plan ahead and maximise the amount of their estate which eventually passes to their intended destination after their death is one of the old chestnuts of the advice process.

Let’s be clear though, despite the volume of bad press that trying to avoid tax seems to trigger in the media, the Government are actively encouraging sensible tax planning. It’s official and its fine to do it without feeling it’s a guilty secret or wrong.

This is an area where our clients need particular help. It’s complicated and technical and lack of knowledge is evident. With that in mind, I’ve chosen to look at just two specific examples where a lack of knowledge and understanding can really cost families financially.

I would contend that too many “estate planning” initiatives fall into the category of being too little, too late. Simply by dealing with legacy planning

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as early as possible, you can get a massive head start on beating the tax collector.

The first example below using the simple ISA demonstrates how relatively easy it can be with a Government-endorsed favourite - without having to go offshore, and not a trust in sight. I wonder how many members of the population with ISAs who are over the age of 70 even know about this?

The second example is a barely known Government concession for the families of service personnel. This has been enshrined in legislation for years yet most of the public won’t have a clue it exists and how it could benefit them. This example is just about knowing and asking the right questions to save every last penny of unnecessary tax being paid. A total and complete exemption from IHT. This applies to tens of thousands of the population.

Simply by dealing with legacy planning as early as possible provides a massive head star t on beating the tax collector

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TH E TI M E BAN K ESTATE PLAN N I NG

EXAMPLE 1. ISAs, APS and BPR for a touch of jargon and estate/legacy planning How many members of the public would understand what the jargon APS and BPR actually means even if they knew what the abbreviations stood for? I’d wager it is very few indeed.

With the individual ISA allowance now sitting at £20,000 per annum, it won’t take long for some very substantial amounts to build up within ISAs, particularly with couples.

This gives us considerable scope when considering IHT planning.

The only real difficulty for couples, in respect of the tax regime, potentially arises on the second death. Without taking any action, the combined ISAs will be subject to IHT on the death of the last survivor.

The question is, what can be done to avoid IHT following that second death?

Make the most of ISAs As we all know, ISAs have some major tax advantages for individuals and couples whilst the funds are held within the ISA. However, with a bit of relatively straightforward planning when utilising ISAs, significant amounts of tax and IHT could be avoided.

How many investors/ clients really appreciate the use of the APS Allowance (Additional Permitted Subscription)?

Following death, not only can the ISA be passed free of IHT to a spouse or civil partner, but the investments in the ISA still retain their tax-efficient status. So why do so many investors have substantial investments outside this facility?

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The usual difficulty we see with elderly clients, whether as partners or on their own, is what happens following death. Most clients just accept that the ISA will be subject to IHT at that point. They are unlikely to know about Business Property Relief (BPR), or to understand the impact this can have on the amount of their estate which would be subject to IHT. To put it simply, converting the ISA, in part or as a whole, into an AIM listed portfolio, potentially removes these funds from any IHT bill on death after two years, by gaining 100% BPR. Making clients aware of what they can and can’t do is paramount. Timing is vital, given the need to survive two years. The death of the first partner is a point in time when everything financial is likely to be reviewed and this opportunity can be discussed.

Talking tactics But why not do it earlier? For the right clients, the ISA could have been converted to an AIM portfolio two years before death.

This would then allow it to be willed to someone other than the spouse or partner without any IHT being liable. The interesting by-product of this is that the remaining partner can still use the value of the ISA as an APS even though they didn’t receive it.

Let’s say a client’s ISA was valued at £50,000. They could utilise the APS Allowance of £50,000 and their own ISA allowance of £20,000, giving them the ability to invest £70,000 in an ISA in that tax year.

In today’s world of divorce, second and even third marriages and children by multiple parents, this is worth bearing in mind

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when thinking about how clients wish to leave their estates in the most tax efficient way.

Clearly there are investment risks involved and lots of other considerations to take into account to assess the suitability of this kind of strategy. However the other major risk - and potential certainty - is a potential loss of 40% to HMRC if the IHT threshold is breached.

If a client doesn’t need - or probably won’t ever use - their ISA funds, why would you look to give away 40%?

Do the maths All other things being equal, a couple with ISAs both valued at £100,000 would be in a position to save IHT of £80,000 on the second death, if their estate exceeded the IHT threshold. Timely education and planning could negate this.

Even with an AIM portfolio, ISAs still give the flexibility to take a regular tax-free income, which is a factor that crops up on a regular basis.

ESTATE PLAN N I NG

By considering the conversion of some - or all - of the ISA into an AIM listed portfolio within it, creates some very interesting scenarios for both advisers and clients to consider.

overlooked IHT exemption within the tax code that benefits veterans and their families.

Clients can’t utilise strategies which they don’t know about. Most would probably appreciate having a discussion like this with you however and it reinforces the consultative approach about what might be best for them. A clever use of ISAs could substantially benefit most clients.

This section is important.

You can find details here. (http://www.legislation.gov.uk/ ukpga/1984/51/section/154 ) It contains a provision that allows, under certain circumstances, servicemen or women complete exemption from IHT.

EXAMPLE 2. The granting of a total IHT exemption: now that’s proper “Help for heroes and heroines” When you are talking to a client about planning legacies, is the first question you ask, ‘Have you or your partner done military service?’ If not, it should be from now on.

November 2018 will be the centenary of the end of the First World War. It is therefore fitting that we now highlight a much

Section 154 of the Inheritance Tax Act of 1984

As well as death due to active service granting this exemption, it also caters for service personnel who were disabled, wounded or contracted an illness whilst in the forces.

If at any time in the future their death is deemed to have been due to - or aggravated by -such a wound or illness their estate will become exempt from IHT. This exemption has to be applied for. However, a good indicator that the individual may qualify is that they are likely to be in receipt of a War Pension for wounds,

How many members of the public would understand what the jargon APS and BPR actually means even if they knew what the abbreviations stood for?

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TH E TI M E BAN K ESTATE PLAN N I NG

June 2018

When you are talking to a client about planning legacies, is the first question you ask, ‘Have you or your par tner done militar y ser vice?’

If not, it should be from now on

disablements and illnesses sustained say from World War Two, Korea or Malaya or more latterly a Guaranteed Income Payment (GIP) having been invalided out of the forces as a result of service in Northern Ireland, The Falklands, Iraq and Afghanistan.

Certainly, including World War Two and all the wars since then, this exemption could apply to tens of thousands of ex-service personnel. One only has to see the Invictus Games to realise how many people this affects as a consequence of combat and active service. It is probably far more common than you think.

Just in our office, I have two colleagues with three family members who qualify and receive invalidity pensions, one from WW2 in Burma and two from Afghanistan. Even at the age of 96 the Burma veteran still qualifies, as there is no time or age limitation.

Ask the question So, when you are considering any IHT planning with a client it will be worth asking if they have any previous military service - bearing in mind that a compulsory three years’ National Service in the forces didn’t end until 1963.

Lots of National Servicemen and women went to Malaya and other tropical climes and contracted malaria.

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As a profession we just need to ask if they or their partner (even if the partner is already dead) were in receipt of a disability payment or pension from the Ministry of Defence. It’s that simple.

of estates beyond the IHT thresholds. I wonder how many of your clients could benefit from knowing this and gaining your advice?

From a professionalism and risk management perspective, it would be problematical if you found out after the event that your client was exempt from IHT.

Financial planners have the knowledge and skills to help clients make the most of their situation in what can be a complex and changing world. So let’s get the message out to as many people as possible and financially improve not only the lives of our clients but the lives of their beneficiaries too.

Additionally, it creates some interesting estate planning scenarios if your client is likely to be exempt. If the ex-service person’s estate is exempt on their death, on the death of their spouse with the advent of the nil rate personal band being able to be transferred, it means that two nil rate bands will be available before tax is levied. Some elderly ladies might well be in this position.

Also, if a family can establish that IHT tax was levied when it shouldn’t have been, they can reclaim it. One of my colleagues highlighted this for a friend of his and HMRC sent out a very nice apologetic letter and just over £200,000 as a refund on the IHT already paid once they had verified his father’s military service.

Making a difference

About Damian Davies Damian established The Timebank in 2003 after being an adviser and discovering the need for outsourced paraplanning first hand. Since then Damian has directed The Timebank to be the largest paraplanning provider in the UK and is starting to grow the business internationally.

The value of clients’ estates has risen significantly with the rise in home ownership over the years, putting a lot

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HSBC LI FE ESTATE PLAN N I NG

June 2018

The estate planning scenario Mark Lambert of HSBC Life looks at why estate planning is such an important piece of the financial planning process The first thing we must remember is that everyone has an estate. A client’s estate is comprised of everything they own; for example their home, bank accounts, investments, life insurance, furniture, personal possessions etc. No matter how large or how modest, everyone has an estate and one other thing in common, they can’t take it with them when they die.

When someone dies, if they haven’t made plans to control what happens to their estate and

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how much tax their estate will be liable to pay, then the law will make these decisions on their behalf.

What are the key issues to consider in estate planning?

Estate planning is therefore best described as the process of anticipating and arranging, during a persons’ lifetime, the management and disposal of their estate and minimizing the amount of tax payable. As part of the financial planning process, this is an essential aspect for professional advisers to consider when working with clients to organise their affairs in the most effective way.

In general, estate planning involves much more than someone just documenting who they want to leave things to. Good estate planning is an opportunity for advisers to discuss with clients how they wish their estate to be managed after their death and involves consideration of a range of issues, such as:

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HSBC LI FE ESTATE PLAN N I NG

In general, estate planning involves much more than someone just documenting who they want to leave things to. Good estate planning is an oppor tunity for advisers to discuss with clients how they wish their estate to be managed af ter their death

In addition, a new allowance called the Residence Nil Rate Band was introduced from April 6, 2017. This is currently £125,000 and this can be added to the existing £325,000 inheritance tax threshold where a home (or the proceeds from a previous home) is left to children who are direct descendants.

•

Who should deal with the estate?

•

Who should look after any children who are under 18?

•

Who should benefit from the estate and by how much? This can be family members, charities, close friends, in fact anyone the person so chooses.

•

Funeral arrangements.

How can an estate plan be implemented?

What inheritance tax rules and allowances need to be considered?

There are two important two important methods of defining an estate plan.

Inheritance Tax (IHT) is usually charged at a rate of 40%. However until 2020/21 the IHT tax free allowance (also called the nil rate band) is fixed at £325,000 per person.

This means that estates worth less than £325,000 pay no inheritance tax. Married couples and civil partners can transfer any unused inheritance tax allowance to the remaining partner when they die. This means the threshold for that partner can be raised to as much as £650,000 in 2017-2018.

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Wills - Wills are a common and highly effective estate planning tool. They are usually the simplest device for planning the distribution of an estate and are usually the foundation which advisers will recommend as the starting point for all clients when it comes to estate planning.

Trusts - A trust is another key estate planning tool which is commonly recommended by advisers. As a reminder, a trust is created by a settlor who transfers

June 2018

title to some or all of his or her property to a trustee who then holds title to that property in trust for the benefit of the beneficiaries.

The trust is governed by the terms under which it was created.

By gifting assets into a trust during their lifetime, a client can, for IHT purposes reduce the size of their potentially taxable estate on death and can also specify who will benefit from the trust’s assets.

A key aspect of the effective use of trusts for estate planning is consideration of an appropriate investment option for the trust’s assets.

Are there any investment options that are particularly useful for estate planning?

An often overlooked option when advising on estate planning is the Onshore Investment Bond.

These long established products are provided by life assurance companies and offer a particularly effective estate planning tool when used as an asset of a trust. Their effectiveness is based on a number of features that these products uniquely offer.

Tax treatment - Trust taxation is a complex and often onerous matter, where in some circumstances, income tax rates of 45% can apply. In addition, trusts are also subject to capital gains tax, although certain exemptions and allowances apply. Accounting for this tax adds administrative complexity and cost to a trust. As a result, advisers should make sure that when recommending a trust for use with clients, that they recommend suitable investments to be held within that trust, so that not only are they in line with the clients risk profile and requirements for income and/ or growth, but also in order to minimise the amount of ongoing tax which will fall due.

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June 2018

Investment bonds provide a particularly effective solution.

This is mainly because such bonds are not assessed as producing income in the hands of the trustees, even if the underlying investments are generating interest or dividends. As advisers will know, withdrawals from bonds are treated as capital withdrawals and are only subject to tax when a chargeable gain is produced.

Until a gain is generated, there’s usually nothing to report to HMRC, which makes for more simplified trustee administration.

a charge to tax. This allows the beneficiaries to surrender the segments with reference to their own tax position.

•

Wide investment choice.

Does the bond give access to a wide choice of funds to offer choice and flexibility in how the trust is invested and to allow the investment to be adjusted over time?

Investment bonds are also useful for some trusts that rely on regular payments to be made to the settlor (or original investor). This can often be accommodated with the facility for an investment bond to generate a 5% withdrawal of the amount invested each year without any immediate liability to tax.

•

Segment flexibility. Does the bond offer a large number of segments to help trustees to assign the policy to multiple beneficiaries, if needed?

•

Does the insurance company offer a range of bespoke trust deeds to help with estate planning or the option for an adviser to use their own trust if preferred?

•

Convenient regular payment options. For relevant trusts, does the bond offer a choice of income frequencies and flexibility on how much can be withdrawn?

•

Transparent and good value charges. Is the bond competitively priced and are all transactions clearly reported?

•

Multi-life and multi-owner flexibility. The more the better as this provides more flexibility for the bond to be continued over several generations.

Investment choice - Bonds a can offer a range of investment choices for advisers to select from in line with suitability requirements for the client, thereby allowing them to ensure the trust assets are effectively managed. It’s also possible for funds to be switched within the bond wrapper without triggering a charge to capital gains tax.

This allows trustees to rebalance or adjust the asset allocation of the trust without capital gains tax implications which can be a constraint to investment decisions within collective schemes.

Flexibility - Investment bonds can be divided into multiple segments.

Trustees can then assign these segments to beneficiaries when they become entitled, avoiding

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When considering which investment bond to use, it is important to consider a number of factors, in particular:

About Mark Lambert Mark's career in financial services has spanned over 20 years and he currently holds the Chartered Wealth Manager designation from the CISI. His roles have encompassed the provision of Independendent Financial Advice at American Express's IFA business, National Wrap Platform Sales roles and the Distribution of Private Banking Investment solutions into the IFA marketplace. In 2017 Mark joined HSBC’s life business and he now has responsibility for the business development team that distributes and supports their open architecture Onshore Investment Bond to Financial Advisers across the UK

This is a sponsored feature.

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Triple Point Impact EIS®

Do well from doing good Benjamin Franklin

A more principled approach to investing is a key theme sweeping markets. The impact on the environment, communities, health and education is an increasing factor in many decisions made by consumers, governments and corporates.

Triple Point’s new Impact EIS is primed to take advantage of this expanding market opportunity with an investment approach that is in tune with the new forces shaping the global economy.

By investing in fast growing, socially responsible companies, our EIS targets significant capital growth and EIS tax reliefs for investors, whilst having a positive impact on broader society.

Welcome to the future of investment.

www.triplepoint.co.uk

Risk Warning: Your capital is at risk. There is no guarantee that target returns will be achieved and investors may get back less than they invested. Tax rules and reliefs are subject to change. Issued by Triple Point Investment Management LLP registered in England & Wales no. OC321250 authorised and regulated by the Financial Conduct Authority no. 456597. Registered office: 18 St. Swithin’s Lane, London, EC4N 8AD, UK.

SYN DICATE ROOM June 2018

ESTATE PLAN N I NG

A different corner With a huge range of options and products for advisers to consider in the estate planning space, we talk to James Sore, Chief Investment Officer of SyndicateRoom, about what makes them different

IFAM: Who are SyndicateRoom and what makes you different?

JS: SyndicateRoom is an online, sector-agnostic investment company specialising in early-stage and growth equity investments.

Now nearly 5 years old, our members have invested in more than 130 companies over 150 investment rounds.

Our unique Investor-Led® approach allows individual investors to invest alongside professional investors such as Angels, VCs and family offices at the same price per share and share class as the professional investors leading the round.

We also operate the first and only passive EIS fund for early-stage investing, Fund Twenty8, which offers investors the ultimate in early-stage diversification by deploying into a minimum of 28 businesses across a variety of sectors.

We have built a strong history of delivering highly differentiated products and services to the investment market, and by putting the investor first, we are confident we will be able to deliver better long-term returns for investors than if we just focus on raising capital for a company.

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IFAM: What are the main areas of business for you?

JS: Early-stage equity investment still makes up the majority of our business, but as our fund management permissions are now complete, we are now looking to scale that part of the business. Our aim is to provide investors with a single destination for investment; that means we will be offering different products continually, at different stages, risk profiles and sizes. We have achieved an awful lot in the 5 years we have been going, but this is only the start.

There is a lot more to come.

IFAM: When it comes to estate planning, can you explain some of the ways in which you can help advisers and paraplanners to create effective solutions for their clients to minimise their future liability to IHT? JS: We take a slightly different approach to how others have built products and services in the past. We start by focusing on how we can deliver value for investors – how we can give them something no-one else has been able to achieve, something that adds true benefit to them or a clear alternative choice. That’s how we came up with the idea for

Fund Twenty8. We had built a very successful self-managed platform, allowing investors to build an early-stage portfolio as they saw fit, but when we looked at the market there were no products offering diversification. I am fascinated by the main market and how passive funds, more than 4 times out of 5, beat actively managed funds after fees.

This fact totally changed my mindset. Diversification is the only free lunch in finance, yet there were no offerings for the higher-risk, earlystage space. So we built one.

With regard to estate planning tools, advisers and paraplanners have many different options at their disposal in order to help clients mitigate the impact of IHT. One aspect where we offer an alternative to the standard offering is through the IHT benefits afforded to EISqualifying investments. As advisers will know, these can prove to be a useful addition to an estate-planning exercise as these assets, when held at the death of the investor, can benefit from Business Property Relief status, meaning they do not form part of the client’s estate from a tax perspective – as long as the 2-year qualifying term is satisfied

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SYN DICATE ROOM ESTATE PLAN N I NG

of course. But I would not recommend holding a single investment in a high-risk, early-stage opportunity for tax-planning purposes. This is a highly risky strategy.

Advisers might be more inclined to seek a large and diversified portfolio so that some of the risks are mitigated. Of course, you don’t get something for nothing – the downside of having a larger portfolio, such as one that Fund Twenty8 would provide, is that the returns achievable are also reduced since each individual holding makes up only a small percentage of the portfolio. One of the added benefits is that, should the investments generate a profit for the investors, these profits are usually free from Capital Gains Tax, so they are then free to invest further.

There have been many products that have primarily sought to skirt - or even flout - the IHT rules, and as such HMRC has rightly clamped down on them. Many of these products, when you actually looked at them properly, smelt wrong from the start. Anything that is "no risk" or, for all intents and purposes, offers little to no risk, is highly unlikely to be within the spirit of the rules, even if it has technically been accepted.

What we have now found are a number of high-profile cases involving celebrities and wealthy clients, all of whom were told by particular advisers that these were acceptable investments. They are now facing significant tax bills worth what they saved and sometimes even more than they invested.

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June 2018

I’m not trying to scaremonger anyone here. What I am reminding advisers of is that if an investment proposition looks too good to be true (e.g. if you get more tax cover than you are risking), it is more than likely not going to qualify. And even if it does technically qualify now, HMRC may well come knocking on the door a few years down the line as they now focus on the spirit of the rules as well, even if something is technically not violating them.

So, the emphasis must be to continue to focus due diligence instead on services, companies and investments that truly invest risked capital and be willing to accept the corresponding potential for loss on particular investments if you expect HMRC to foot some of the bill and share in that risk.

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SYN DICATE ROOM June 2018

ESTATE PLAN N I NG

IFAM: How do you work with advisers, what support can you give them?

JS: We are privileged to work with a large and growing network of advisers, from small independents right the way up to some of the biggest in the UK. We have always sought to give professional advisers as much information as possible to help them to fully understand the options we can provide.

We have recently started providing independent and industry reports which have been compiled on our products. A recent example of this was the XPM consulting report conducted

by Nikki Hinton-Jones on Fund Twenty8. This was totally independent and generated for one of her IFA clients. It was very well received by other advisers as it is totally independent, really allowing advisers to make informed decisions on behalf of their clients.

This is a sponsored feature.

So, the emphasis must be to continue to focus due diligence instead on ser vices, companies and investments that truly invest risked capital

James started his career at a boutique investment firm, originally as investment analyst and quickly moving to investment manager. He’s also built up his own private investment portfolio, while starting and selling companies. James is also a mechanical and electronics engineer with experience designing and developing products for world-leading brands such as Coca-Cola, Hershey’s, Pfizer and British American Tobacco.

For more details on SyndicateRoom visit www.syndicateroom.com www.syndicateroom.com/fund-twenty8 On Twitter, follow @syndicateroom

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Fund Twenty8™ SPREAD YOUR RISK

PASSIVE EIS INVESTING

FIND OUT MORE www.syndicateroom.com/fundtwenty8 This is only directed at professional investors and should not be relied upon by retail investors. The value of investments may go down as well as up.

Authorised and regulated by the Financial Conduct Authority (No. 613021). Registered office: The Pitt Building, Trumpington Street, Cambridge CB2 1RP

CGWM June 2018

ESTATE PLAN N I NG

All together now IFA Magazine talks to Sean Taylor, of Canaccord Genuity Wealth Management, about the business and how its collaborative approach to working with advisers is driving success IFAM: As an investment house, how important is it for Canaccord Genuity Wealth Management to build relationships with advisers and planners?

ST: This is something which is very important to us. In fact, a significant percentage of our assets have been introduced by our third parties’ tripartite way of working, if you like. I would argue that our style of management is perfectly suited for those clients looking for something different, something designed to meet their specific needs, and we realise no one is better at knowing their clients than the professional adviser community.

Building and maintaining relationships is everything in our business and we base our relationships on the foundations of integrity, efficiency and accuracy, which are the key to longevity. For us, we see collaboration as a fundamental part of what we do. We work in synergy with dedicated professional advisers, who share a common goal – to help clients to protect and grow their assets in line with their financial plan.

In my view, the two professions – financial planning and investment management - complement each other incredibly well. This can help strengthen a truly holistic client proposition and result in improved business efficiency for the adviser too.

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IFAM: Which are the particular areas where you can help deliver solutions for advisers most effectively?

ST: Whilst we can help in all sorts of situations, we find that Court of Protection clients often have very specific needs and we can manage their portfolios within the tax structures created by their advisers more effectively than other managers.

Also our IHT Portfolio Service is very useful for the pre, at and post retirement demographic so we are keen to support IFAs to target this particular client segment. The IHT Portfolio Service has got a 12-year history – unusually with the same management team – and we are very competitive on charges and performance as well as having a proven process that advisers really appreciate. Access to our portfolio services is available through third party platforms which is a big advantage.

Another area of expertise for us is helping with US expats living in the UK. We provide a comprehensive investment management service specifically designed for US citizens who are based here. We deal in US equity and fixed income markets, and have extensive research teams in North America and London. We can arrange for custody in New York, and can take care of US tax year accounting in dollars as well as US-compliant individual retirement accounts (IRAs) and other tax reporting documents required by the IRS. So we can provide direct help and support to advisers working with these clients.

Although it’s probably quite unusual, a couple of specialist areas for us, which I’d like to mention are the defence community and military charities. We really understand their needs, as we’ve been working with them for a long time. We have around £1bn AUM for all types of charities, associations and foundations.

We understand the specific requirements they face with their individual Investment Policy Statement (IPS) and can cater for their restrictions on where they can and can’t invest. They may also have formal ESG (environmental, social and governance) standards to meet and as we have additional expertise in-house with our ESG Portfolio Service, this is another area where we can provide valuable help. The ESG Portfolio Service also enables us to meet the investment needs of the next generation, who tend to be more concerned about the nature of their investments and the environmental or ethical record of the companies involved.

Overall, the delivery of all our solutions is all about working with the adviser to achieve the best client outcomes in all situations.

It’s a genuine business-to-business partnership which brings a number of benefits. In fact, since they started working with us, our existing partners have told us that they have been able to: •

Break through the ceiling of complexity to extend fee-earning potential with existing clients and attract quality new clients

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CGWM ESTATE PLAN N I NG

•

Strengthen client relationships

•

Reduce their professional indemnity insurance premiums by working with us

•

Engage with professional connections at a new level

IFAM: When it comes to managing portfolios, how is your approach different?

ST: We run a very robust centralised investment process, with effective portfolio construction where assets are placed in various tax wrappers to enhance clients’ taxable situations. Our depth of experience of working in partnership really helps here– and gives the end client the safety of knowing that they have several expert professionals working together to achieve their objectives and all for one price. We like to put a human face to what can be a complicated decision process and are certainly not a ‘stay at home’ team. By placing the adviser and their client at the centre of our activities – they drive all that we do – shows how we value diversity of thought. It’s great that we have an ancillary offering not available widely in the market.

IFAM: What’s the background to the business?

ST: We are part of Canaccord Genuity Group Inc., a publicly traded company under the symbol CF on the Toronto Stock Exchange. Established in 1950, it is now a leading global financial services firm, operating in wealth management and capital markets.

The Canaccord Genuity Wealth Management business in the

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UK and Europe was established when the Group acquired Collins Stewart Hawkpoint plc and Eden Financial in 2012. Collins Stewart had established its wealth management division in 1996.

We have successfully grown our business and reputation over the years. Now, in the UK and Europe - including our recent acquisition of Hargreave Hale - our investment professionals manage and administer over £25bn (as at 31 December 2017) of assets.

IFAM: Intergenerational planning is a major consideration for many advisers. How can you help advisers deliver appropriate solutions for clients in this particular area?

ST: As well as running a dedicated IHT Portfolio Service which directly helps in this space, we also operate holistic, whole of family management and pricing – or family office behaviours, if you like. We’re always happy to work in concert with trustees and advisers to ensure the maximum passes down to the next generation so that we really do deliver the highest value to clients. By understanding adviser issues and concerns around risk management and controls in terms of intergenerational services, we can really help advisers manage these important elements.

IFAM: What are the plans for the future of the business? What’s next?

ST: We are always open to technological innovation and on the look-out for new ways to help

June 2018

us improve our business through embracing technology – both internally and externally. ESG is a hugely important aspect for us, and something we will continue to build upon in future.

Broadly, we need to work harder to gain wider recognition of our business as a brand amongst the professional adviser community.

Our client solutions will continue to revolve around the combination of demographic understanding, behaviours of the segment and satisfaction – in particular reducing inertia to change and an overriding focus on adding value.

This is a sponsored feature.

Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.

About Sean Taylor Head of UK Intermediary Sales & Business Development Sean is responsible for the team of specialists at Canaccord Genuity Wealth Management that have a specific focus on Intermediaries, Charities and Professional Advisers.

Sean has UK and international experience in delivering strategic and tactical solutions to complex client needs. Sean previously held positions at UBS, Goldman Sachs and Deutsche Bank. Before entering financial services, he served as an Officer in the British Army and continues as a Service Charities’ Trustee.

To find out more about Canaccord Genuity Wealth Management visit http://www.canaccordgenuity.com/ wealth-management-uk/intermediaries/ or contact cgwmintermediaryteam@ canaccord.com

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TRI PLE POI NT June 2018

I M PACT E I S

Impact investment a 'Win Win' for both investors and advisers, says Triple Point A more principled approach to investing is a key theme sweeping markets, says Triple Point, as it highlights the importance of Impact Investing

A more principled approach to investing is a key theme sweeping markets. However, most of the ethical funds launched to cater to such needs have drawbacks, whether it’s their investment focus or willingness to compromise on returns.

Dissatisfaction with such traditional funds has been a key factor behind the more recent rise of Impact Investing products, such as the Impact EIS that Triple Point has just launched.

They satisfy investors’ increasing demand to back businesses that positively benefit society while earning a market return. For advisers, they offer an opportunity to capitalise on one of the fastest-growing investment areas, while also building long-term relationships based on a deeper collaboration around the values, as well as the investment principles, of their clients.

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Impact investment approach will become the norm Increasingly, investors want to do well from doing good. No longer is it enough for many investors that the investment schemes they commit to, such as ethical funds, just avoid social damage.

Nor are they happy to give up a fair market return to support companies that make a positive impact, which is what many socially responsible funds offer.

Triodos, the sustainable bank, recently found that nearly two thirds of UK citizens would prefer their money to support companies that are not only profitable but that also have a positive impact on society and the environment.

Academic research also backs up this investment approach. Research from Friede, Busch and Bassen, authors of the Sustainable Journal of Finance, in a study, “ESG and financial performance”, showed that in 90% of 2,200 peer reviewed studies there was a positive or neutral correlation between the two.

What is also important to understand is that this approach is not simply catering to the investment philosophy of a cohort of more progressive individuals. Rather than ancillary analysis, it is actually fundamental critical insight into a company’s viability and potential long-term business performance.

Increasingly Impact Investing is rightly seen as a subset of commercial investing that happens to be sustainable and make a positive impact. One of the rationales of impact investing is that the long-term risk adjusted returns will be superior because the investment approach is in tune with the forces shaping the global economy. This is because it takes into account the risks and opportunities for businesses of transitioning to a more sustainable, low carbon economy where companies will increasingly be penalised for their negative social impacts.

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TRI PLE POI NT I M PACT E I S

As Stephen Barclay, previously Economic Secretary to the Treasury, recently said: “Impact Investing has the power to make a positive change in society, while also bringing positive financial returns. It’s a win-win, which is why demand is growing.”

Retail investors seeking more opportunities to make impact investments A Government review commissioned last year, chaired

by Elizabeth Corley, chair of Allianz Global Investors, reported that “there is growing interest among individuals for their investments to have a positive impact on society as well as produce financial returns.” The review also said that the Impact Investing market required further development to cater for retail investors. More recently, asset managers have been responding to increased demand and have started to tailor their impact investment products accordingly.

The Government has made clear that it supports the expansion of the Impact Investing sector and is backing moves to facilitate further retail investment into Impact Investing by encouraging greater transparency, a more robust governance framework and better measurement of outcomes so investors can be clear on the positive impact their investments have made.

Triple Point Impact EIS aligned with investors’ interests Against this evolving and very favourable backdrop, Triple Point has just launched its Impact EIS managed service. It is raising an initial £10m and offers investors a portfolio of between 8 and 12 fastgrowing companies across four key sectors – the environment, health, children and young people, and inequality. The funds raised

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will provide scale-up capital for revenue-generating companies, which have the potential to achieve returns of 5-10x.

The capital should be deployed over 12-18 months and the target to exit from each holding is four to seven years. The offer is available all year round, for a minimum investment of £25,000.

Triple Point seeks to align its interests with its investors and maximise returns by limiting the costs for investee companies and not charging arrangement fees.

Triple Point’s Impact EIS investment team has significant experience in venture capital, social investment and measurement and private equity.

Team leaders, Ian McLennan and Julian Pickstone, have more than 40 years of investment experience between them.

They are supported by a strong advisory board of seasoned impact investors and entrepreneurs.

As a leading specialist in private investments, Triple Point is perfectly positioned to launch an impact EIS. The company has returned over £134 million to investors over the past two years, with over £240 million returned to investors in Triple Point VCTs and EIS. Advisers can play a key role and build strong client relationships Advisers should view Impact Investing as offering them an opportunity to take a key role in an investment approach that will increasingly be seen as standard and represents the future of growth company and personal investment. They should not see it as a separate discipline, but rather essentially as an EIS product that involves all their traditional skills of financial analysis, asset allocation and client care to ensure that they meet their clients’ objectives.

June 2018

Impact Investing has the potential to be a core asset allocation through better understanding facilitated by advisers and platforms that can highlight the benefits of impact investing to clients.

Through Impact Investing advisers also have an opportunity to strengthen their client relationships. Typically, such investment requires a more indepth, meaningful collaboration.

Assisting clients in shaping their portfolios to deliver robust market returns alongside positive environmental and social impact can help build longer and lasting relationships and involve co-operating on a much deeper, personal level.

The Personal Finance Society recently launched a guide for advisers on Impact Investing, following the recommendations in the Government review.

An impact approach is the investment expression of the global forces shaping economies and how businesses operate, as well as the principles investors follow in implementing their investment decisions. In the years to come, it is on course to evolve into probably the most important and dominant approach in financial markets to both growth company fundraising and personal investment. This leaves providers and advisers with critical roles to play in ensuring that it meets the needs of both investee growth businesses and the investors who provide the funding and also becomes a core part of their investment portfolios.

Risk Warning: Your capital is at risk. There is no guarantee that target returns will be achieved and investors may get back less than they invested. Tax rules and reliefs are subject to change.

This is a sponsored feature.

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TI M E I NVESTM E NTS ESTATE PLAN N I NG

June 2018

Intergenerational financial planning – keeping it in the family Henny Dovland, inheritance tax expert and business development manager at TIME Investments, talks through some of the considerations involved As we live longer, it is quite typical for four generations to be alive and well in any one family. This means it is becoming increasingly important for advisers and planners to consider financial planning on an intergenerational rather than individual basis.

Meanwhile, younger generations struggle with student debt, rising house prices, an evolving job market and an uncertain economic future – combined with receiving the greatest inheritance but at a much older age than previous generations.

Inheritance Tax (IHT) is hefty – 40% of the total qualifying estate – yet our own research shows that over a third of consumers aged 55 and over who use an IFA for financial advice have not yet considered Inheritance Tax (IHT) planning.

Assessing retirement income

Financial planners need to think about the services they provide to the family as a whole. Rather than focusing on the wealthiest generation in isolation, there will be opportunities to help all members of the family who will experience different financial challenges simultaneously.

The baby boomers are usually considered the wealthiest of today’s surviving family members. They are some of the last to enjoy the benefits of a final salary pension, while also likely owning one, or maybe multiple, houses. However, they are also among the first to experience long retirement and the careful financial management that comes with that.

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Of course, serious consideration needs to be given to how much income a client will require in retirement and how long this income needs to last. This is a difficult question for advisers but with an idea and some assumptions of inflation expectations, lifestyle and health, some indication can be achieved. Next, is to establish whether the client can reach that income target based on an assessment of assets.

Where there are surplus assets, now is the time to assess IHT planning.

There are several tax-efficient ways to pass assets to descendants, but these have different constraints and obligations.

The easiest route may be to pass cash to family members.

However, aside from the use of small and annual gift allowances, larger gifts will typically take seven years to fully fall outside of the taxable estate.

A more complex option, but with greater restraints on the recipients, is to set up a trust which is exempt from IHT. However, as with gifting, once the assets are in the trust, the individual loses control.

An alternative tax efficient option is investing in shares that qualify for Business Relief (BR) and holding them for more than two years.

To qualify for BR, the shares cannot be listed on a public stock exchange such as the FTSE 100. Instead they must be in either an AIM listed company or a private company that trades rather than invests. BR qualifying shares receive up to a 100% IHT exemption, depending on the stock, and the individual retains control. The shares can be held directly or form part of an ISA giving the investor added flexibility.

However, these are investments and are not without risk.

Irrespective of whether gifts, trusts or BR are used, advice is of paramount importance to avoid costly mistakes and inefficiencies.

Home is where the heart is How people deal with the family home is also an area where advisers and planners can add significant value. Passing the family home to the next generation is an

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TI M E I NVESTM E NTS ESTATE PLAN N I NG

enormous emotional (as well as financial) move, and ensuring this is done in the most effective way for all concerned is important. In such instances, advisers should make best use of the residence nil rate band (RNRB).

The nil rate band has been stuck at £325,000 for some time, meaning anyone with an estate exceeding that figure are potentially liable for IHT. Clearly this is an issue given today’s escalating house prices.

In response, the government introduced the RNRB from April 2017 which allows home owners an additional £100,000 before they are subject to IHT. This will increase each year by £25,000 until 2020. Prior to 2017, a husband and wife or civil partners with an estate of £900,000 would have been subject to an IHT liability of £100,000 on second death. Thanks to the RNRB, that bill now falls to zero – provided the couple qualify.

spouse or civil partner can inherit ISA funds from their deceased partner or make an additional ISA subscription up to the value of their deceased partner’s ISA holdings. It is possible to invest ISA funds in AIM listed companies that can qualify for 100% IHT relief after two years of ownership.

June 2018

Want to find out more?

If you would like to find out more about intergenerational planning and inheritance tax services available to your clients, please contact us on 020 7391 4747 or questions@time-investments.com.

We all know the saying, ‘you can’t take it with you’ but the pot still needs to last until the end. Intergenerational planning is about striking a balance between providing for each of the individuals, with the right tax efficient income to cover different needs at various stages of their lives.

The right advice at the optimum time is crucial in ensuring each generation can share in the family’s wealth both today and in the future.

This is a sponsored feature.

We should note that only direct descendants qualify for RNRB. Married couples leaving their assets to each other may transfer the RNRB to the surviving spouse, allowing them to use up to twice the tax free amounts available to a single individual.

Super savers Flexible pensions are another tax efficient way of passing money down through the generations.

If the pension scheme member dies before age 75, their nominated beneficiaries will not have to pay any tax on withdrawals, whether as an income or lump sum.

If the pension member dies after age 75 pension assets become taxable, but only at the marginal rate of income tax of the recipient.

Meanwhile, ISA holdings still form part of the taxable estate for IHT purposes. A surviving

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OXFORD CAPITAL ESTATE PLAN N I NG

June 2018

How to avoid damaging the standard of living for clients in later life Oxford Capital highlights a useful strategy offering advisers an effective IHT planning solution with flexibility and control Currently, the majority of IHT mitigation strategies focus on asset reduction, such as gifting, to remove funds from an estate.

But, the downside is that there is little or no prospect of a donor retaining control of or access to them – even if he or she really needs them later in IHT their life.

Of course, cash flow planning can be used to predict likely future expenses in an effort to strike a balance between IHT planning and living costs. But recently there has been concern about how advisers are using some cash flow tools and expectations that the regulator will soon be scrutinising this area more closely.

Proceed with care Following recent research into this issue, Defaqto’s David Cartwright stated, "Get just one element of the advice process slightly wrong and there is the potential for advisers to destroy the standard of living for clients and their partner for the rest of their lives.” Strong words, but deciding the amounts clients should be left with for later life, is no easy task.

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For a start, the UK population is both ageing and living longer, but, typically, men underestimate their life expectancy by almost 4 years, and women by 2 years (Aviva). And, even without this misjudgement, retirees are now living a decade longer in retirement (at age 65) than when the State Pension was introduced at the start of the twentieth century. Longer retirements bring additional and unexpected financial risks, like the need to support children and grandchildren.

The role of advice As a larger proportion of UK residents falls into the older cohorts (by 2045 over 65s are predicted to represent a quarter of the population), and illnesses requiring complex care such as dementia, (expected to surge to 2 million by 2051), are increasing, so are care costs. In fact, in its Occasional Paper 31, Ageing Population and Financial Services of September 2017, the Financial Conduct Authority, stated:

“On average, across the UK, 41% of care home residents are entirely self-funded, 37% are funded by the public purse, and others self-fund part of their care or receive other funding. It is estimated where self-funders run out of money, this costs the state approximately £425 million.

Therefore, access to good regulated advice is important, not only for improving consumer outcomes but also mitigating the financial impact of poor planning.”

This must surely be construed as a major endorsement of estate planning incorporating flexibility and the retention of control over funds, without infringing on anti-avoidance provisions such as pre-owned assets and gifts with reservation of benefits.

Business relief offers important benefits These factors are making it increasingly difficult to accurately predict clients’ future needs as they age and their circumstances and priorities abruptly change. But there is a simple solution: business relief (BR), which offers up to 100% IHT exemption.

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OXFORD CAPITAL ESTATE PLAN N I NG

Business relief involves investing funds into shares in unquoted companies undertaking qualifying trades (investors need not be personally involved in the business). Not only do the companies receive much needed finance, but the invested funds qualify for 100% IHT exemption after just a twoyear holding period*, unlike the seven years required for gifts. And, importantly, from the viewpoint of control, BR provides asset conversion rather than reduction as it is simply an investment made in the name of the individual who continues to own it.

Replacement property relief Advisers are reminded of the added flexibility of replacement property relief (a form of rollover relief); where assets that qualify for business relief are sold, it may be possible to restore the relief immediately by arranging a new BR qualifying investment. Provided the investments have been held for a combined period of at least two of the last five years, the relief will continue to apply.

There is also no medical underwriting as, for example, is required to take out a life assurance policy and complicated legal structures are not needed, unlike conventional gifts into trust.

The Oxford Capital Solution While BR does involve investment risk and liquidity may not be immediate, BR investments such as Oxford Capital’s Estate Planning Service offer a level of flexibility and control within their product that can make disposal of the BR qualifying assets, and any subsequent loss of IHT relief, unnecessary when circumstances change.

This is because the discretionary portfolio services give a choice of Growth, Income and Access strategies – see table 1. But more than this, investors can combine or switch options to suit clients’ developing needs at any time and there are liquidity provisions allowing ad hoc or regular access to capital.

This is a sponsored feature.

Income

Investment Options

Growth with access

CASE STUDY David is 57. He knows that our cognitive and decision-making facilities tend to decline as we age and he wants to ensure he starts estate planning now, even though his circumstances might change in the future.

He invests in the Oxford Capital Estate Planning Service He chooses Growth with Return The following year, his eldest daughter gets married and he requires a lump sum to pay for the wedding. He also knows that his youngest daughter is due to get married in the following year As he is aware of the dates of the events in advance, he is able to give sufficient notice to make two ad hoc lump sum withdrawals in plenty of time to cover the costs When he is 65, David retires So, he switches to Income to give additional dividend income At 68, his health deteriorates and he is aware that he will shortly need to enter into care

Growth with return Growth, Balanced access and return Income and growth

Withdrawals

June 2018

Quarterly Income payments Fixed regular withdrawals

At this stage, he decides to incorporate the quarterly income payments access feature to his Income strategy to contribute to his care costs

Occasional lump sum withdrawals Fees may apply to switching between investment options and accessing capital.

The focus is on capital preservation while targeting inflation beating returns and, to date**, return and liquidity targets have been regularly exceeded. *Must be held on death

For more information on the Oxford Capital Estate Planning Service, please go to: www.oxcp.com/IHTPlanning

**Between April 2015 and April 2018

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RICHARD HARVEY June 2018

Alive and kicking Estate planning is all well and good says Richard Harvey, but who wants to be the richest man in the graveyard?

In the previous pages of this magazine I’m hoping that you will have found some interesting ideas that you can use to try and help your clients shimmy past the most onerous inheritance tax liabilities, thus ensuring their hard-earned is safely delivered to its intended destination, rather than the grasping maw of HMRC. However, for mature folk such as myself, there is a simple alternative: spend it while you can. Now that is not to say you should blow your pension pot on some high-rolling bacchanalian orgy of five-star holidays and nights out at Crockfords, but instead carry on earning – and spending while you're able. And it might be longer than you think.

now, plus a modest drawdown from pension savings, I've deliberately chosen to carry on working. Not full-time (I follow Winston Churchill's policy of staying in kip for as long as possible in the morning), but enough to generate the kind of return which permits me to skip the 'house wine' bit of the menu, and move on to something a tad more indulgent.

A new paradigm More and more of us in the UK are choosing to carry on working into our 70s, 80s and beyond.

In 1993, some 750,000 people worked beyond State Pension age.

Today, that figure has doubled to 1.5 million. As advisers, I’d be pretty sure that you’ve seen plenty of evidence of this with those clients you work with.

The R word I recently gave a presentation to my local business networking group, which I titled: 'Don't mention the R word'. The R standing for Retirement.

While I've been drawing my State Pension for several years

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RICHARD HARVEY June 2018

Of course, there are many older folk who will be compelled to carry on working because of a lack of savings, and the fact that the parsimonious State Pension is nowhere near enough for them to live a decent and dignified retirement.

The good life But whatever the circumstances, there is increasing evidence that ignoring the so-called 'retirement age' carries with it benefits beyond additional income.

As Philip Booth of the Institute of Economic Affairs says: "Working longer will not only be an economic necessity, it also helps people live healthier lives".

That's the cheery bit of his message, because the Institute and Age Endeavour Partnership also state that retirement increases the probability of suffering clinical depression by 40 percent, and by a similar margin decreases the likelihood of being in 'very good' or 'excellent' health.

There is, of course, the argument that still-working wrinklies are doing young people out of a job.

But from all I've heard about the snowflake generation, with their demands for a strictlylimited working week and a 'safe space' if they don't get it, that's not a position with which I have much truck.

So the next time you see one of those ads featuring a handsomelooking retired couple strolling along a sun-kissed beach, you can legitimately assume that at least one of them has piles, a duodenal ulcer and a back as stiff as a plank.

And they probably can't remember how they got on the beach in the first place.

From the perspective of IFAs, more clients delaying access to their savings, and boosting them with additional income, is probably a relatively recent phenomenon.

While you will almost certainly have clients who are looking forward to putting their feet up in front of the fire, anticipating a life of Hob Nob biscuits and Eezee-Fit elasticated waist slacks, there is a growing cohort of fit and healthy oldsters who want to carrying on working.

This isn’t just for money, it’s because they enjoy it too!

For instance, a friend of mine recently worked with his adviser to set up an additional pension plan, with premiums paid out of his business account - and he's 73. Making the most of our assets when we’re gone is important of course, but we shouldn’t forget to make the most of them whilst we are alive and kicking - to enjoy the fruits of our labours by doing the things we want to do even if it does mean spending a bit more money along the way.

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CAREER OPPORTUNITIES Position: Financial Planner Location: AMERSHAM Salary: £50,000 - £60,000 Per annum The client: This IFA firm has a presence across the south of England and a partnership with a leading accountancy firm.

The opportunity: You will be the primary Financial Planner responsible for the office. The USP of this role is a focus on the leads that are provided.

Previous experience working with professional introducers is an advantage, as is experience of working with business owners.

What’s needed for me to be considered?

Current SPS, qualified between Level 4 and Chartered Level, plus further professional qualifications (or working towards) i.e.pension qualifications including G60, AF3 and experience of Cash Flow Modelling.

Position: Wealth Management Consultant Location: LEICESTER Salary: £28,000 - £40,000 Per annum The client: A bespoke national independent wealth management & employee benefits specialist with a fantastic reputation for ensuring the client is at the heart of everything they do; The opportunity: An adviser is need to take on a number of the company’s clients and to help grow the companies AUM. This opportunity would be suitable for any level 4 diploma qualified professionals, particularly existing IFAs with strong books of business, or also diploma qualified paraplanners or junior advisers looking to step up. Excellent salary and benefits package provided.

What’s needed to be considered: Previous experience within an IFA business, qualified to level 4, with a strong understanding of pensions and investment products advantageous as is a focus on new business development.

Position: Paraplanner Location: LONDON Salary: £35,000 - £45,000 Per annum The client: This rapidly growing Financial planning firm based in Mayfair seeks an experienced paraplanner. There is a great deal of flexibility within the role regarding progression.

The opportunity: This role is unique in that the successful candidate will work alongside and shadow an experienced Chartered Financial Planner, reporting directly, giving the candidate further invaluable experience and industry knowledge.

What’s needed for me to be considered: An individual with paraplanning experience who can quickly take to the role, with a drive and determination to progress, and is qualified to level 4 plus working towards Chartered status.

Experience in cashflow planning and writing financial plans is required – and of using Voyant, O&M Pensions Profiler and FE Analytics software. You’ll also need excellent IT and communication skills.

Position: Senior Paraplanner Location: WIMBORNE Salary: £30,000 - £50,000 Per annum The client: This is a small, established Wealth Management firm which focuses on providing a high quality financial planning and investment management service.

The opportunity: They seek an experienced Paraplanner to prepare suitability letters, reports and recommendations, as well as provide technical support to complex client queries. You will be working in a strong team-focused environment where you can develop your career.

What’s needed to be considered: You’ll need to be qualified to level 4, have experience within an IFA practice and have a high level of analytical capability and good communication skills.

Position: Group Risk Consultant Location: BATH Salary: : £50,000 - £60,000 Per annum The opportunity: A Group Risk Consultant is required to provide advice and service on a wide range of Group Risk products, including Group Life Assurance, Group Income Protection and Group Critical Illness. You will manage a book of existing business as well as grow this by gaining new business.

What’s needed to be considered: Previous experience in a similar role and a proven background in excellent account management as well as new business generation.

Position: Senior Paraplanner Location: CONGLETON Salary:£35,000 - £45,000 Per annum The client: This is one of the largest, most successful financial planning firms in Cheshire. It has been built on the idea of progression and organic growth and can offer study/exam support as well as a friendly office culture.

The opportunity: The successful candidate will be a confident Paraplanner who is diploma qualified. You will have excellent written and verbal skills, as well as the ability to prioritise, multi-task and manage your own workload efficiently.

Responsibilities: As well as Level 4 qualification ( or working towards) strong financial services knowledge is required plus understanding of compliance terminology.

Position: Senior Paraplanner Location: PENARTH Salary: £30,000 - £35,000 Per annum The client: The business operates from a converted cinema with a minimalistic and modern feel. It is a small but highly reputable advisory practice. In the past year they have taken on number of clients through word of mouth, due to the highly valued service they provide to their clients, of whom they have lost just 1 in the past 10 years.

The opportunity: An experienced paraplanner is required to work alongside one of the Directors of the business. This is a fantastic opportunity to join a client focused, tight knit team, currently in the stages of major development.

What’s needed to be considered: You’ll need to have proven experience in a Paraplanning position and be Diploma qualified with R08 also preferable.

Position: Financial Planner Location: MARKET HARBOROUGH Salary: £50,000 - £65,000 Per annum The client: This is an award winning, well-respected business which is expanding quickly and builds sound long term relationships with their clients.

The opportunity: You will be given a strong client bank that is generating north of 100k in recurring income and tasked with servicing this and building on this. You will have a qualified and experienced paraplanning team to assist you and will be provided with a competitive employed salary and strong benefits package.

What’s needed to be considered?

Diploma qualified with CAS status. Excellent sales, communication and presentation skills whilst having a track record of achieving targets and showing drive to continue doing so.

Position: Financial Planner Location: CAERPHILLY Salary: £50,000 - £60,000 Per annum The client: This award winning, well-respected and established IFA practice seeks to build a long term, trusting relationship with their clients.

They have multiple offices and are expanding quickly. They pride themselves on their professionalism and quality of service.

The opportunity: An experienced financial planner is needed to join a growing firm that can offer genuine career development through exam and study support and the possible progression to Director Status.

You will inherit a strong client bank that is generating north of 200k in recurring income and tasked with servicing this and building on this as the outgoing adviser retires. A qualified and experienced paraplanning team is available to assist. A competitive employed salary and strong benefits package is available.

What’s needed for me to be considered: Diploma qualified, with CAS status. Excellent sales, communication and presentation skills and driven to achieve targets with a track record of producing good levels of business as an adviser.

Position: Financial Planner Location: CHELTENHAM Salary: £45,000 - £80,000 Per annum The client: This is an award winning, well-respected IFA practice that seeks to build a long term, trusting relationship with their clients. They have multiple offices and are a very well-established business that is expanding quickly and prides itself on professionalism and quality of service.

The opportunity: An experienced financial planner is required to service a strong client bank that is generating north of 100k in recurring income and tasked with building on this. A qualified and experienced paraplanning team is available to assist. A competitive employed salary and strong benefits are provided.

What’s needed to be considered?

Diploma qualified, with CAS status. You’ll need excellent communication, sales and presentation skills and be driven and motivated to achieve targets with a track record of doing so.

Position: Employed IFA Location: LANCASTER Salary: : £30,000 - £50,000 Per annum The client: This firm of independent Financial Planners is based in Kendall.

The opportunity: They seek a financial adviser with a professional and level-headed approach. You’ll need to be level 4 qualified, whether an existing IFA with a strong book of business, or newly qualified looking to progress. In this role, as mentioned, you will have the chance to work with a number of the firms existing connections, whilst being given the tools to self-generate additional business.

What’s needed to be considered: Previous experience within an IFA / Financial Planning Practice and ideally of dealing with HNW clients, qualified to level 4 experience and with a strong understanding of pensions and investment products.

Position: Compliance Associate Location: BATH Salary: : £20,000 - £35,000 Per annum The client: Our client is highly reputable IFA firm looking to boost their compliance team.

The opportunity: In this exciting new role you will support the Head of Risk to identify all areas of the business where compliance oversight is required.

What’s needed to be considered: Previous experience within an IFA business, you’ll need high level report writing skills plus a good understanding of the financial services marketplace, products, services and compliance standards.

And also…

If these specific vacancies are not exactly what you are looking for, please contact us to discuss other opportunities we may be recruiting for that aren’t necessarily advertised. Additionally, refer a friend or colleague to us and receive £200 in vouchers if we assist them in securing a new career.

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Visit the Heat Recruitment website for more details of these and hundreds of other jobs too www.heatrecruitment.co.uk

STEP CERTIFICATE FOR FINANCIAL SERVICES TRUSTS AND ESTATES PLANNING ENABLING THOSE IN THE FINANCIAL SERVICES INDUSTRY TO WORK MORE EFFECTIVELY WITH OTHER PRIVATE CLIENT PROFESSIONALS

The STEP Certificate for Financial Services is the only trust and estate planning course to address the common ground between solicitors and those working in the financial services sector.

ABOUT STEP STEP is the worldwide professional association for those advising families across generations. Full Members of STEP (TEPs) are the most experienced and senior practitioners in the field of trusts and estates. STEP membership is considered a mark of excellence and our high professional standards are recognised internationally.

Once you are a member of STEP you can connect and network with other members across a range of specialisms around the world.

Find out more at www.step.org/join

Enrol on this Certificate to: • Increase your knowledge and understanding of the legal and tax factors of estate planning • Enhance your ability to deliver holistic investment and financial planning advice to clients as a ‘trusted advisor’ • Arm you with a qualification recognised by the STEP community, a group which includes the most respected solicitors and accountants working within the fields of trust, tax and probate

“This is a very useful course for anyone involved, or wanting to get involved, with trusts or inheritance tax planning.”

Carl Martin, BSc (Hons), FPFS, CFPCM Consultant, Chartered Financial Planner Carpenter Rees Limited

Enrol before 20 July 2018 at www.step.org/IFA18

IHT solutions to meet your clients’ needs Two award winning capital preservation solutions, offering asset backed investments and a 3.5% target return

An innovative ‘smart passive’ growth option that selects AIM listed companies, seeking to deliver attractive returns and reduce volatility

About TIME

• Investment solutions covering tax planning and income

• Winner of Best IHT Portfolio Service 2017/18

• More than 1,000 of our investors have exited • 22 year track record of successfully achieving and achieved BR

IHT savings for our investors

• Over £850 million assets under management • Nationwide distribution team of 30 • Longest BR track record of any provider • In house team of 20 investment specialists

To find out more about any of our investment solutions, contact us on 020 7391 4747 questions@time-investments.com time-investments.com This notice is aimed at financial advisers only and is not intended for retail clients.

TIME Investments is a trading name of Alpha Real Property Investment Advisers LLP and is authorised and regulated by the Financial Conduct Authority.