For today’s discerning financial and investment professional
Virtually Normal Phil Calvert on the importance of community amongst financial advisers
Ben Constable-Maxwell, M&G Investments, on Investing for equality of opportunities
May 2020
ANALYSIS
REVIEWS
The Virtual Adviser - advice on how best to get to grips with the new normal
ISSUE 88
COMMENT
INSIGHT
Change makes us pull together.
Ninety One is authorised and regulated by the Financial Conduct Authority.
We’re experiencing an unprecedented situation. Incredible changes are happening and the challenges we’re facing are daunting. They’re forcing us to adapt and rethink. But they are also pulling us together. By working closer as communities and businesses we will restore our well-being and our economy. Since 1991 we’ve been helping our clients deal with change. Our approach is to tackle it head on and that’s what we’re doing now. So with everything that’s happening today and whatever comes next, we’ll pull together, seeking the best way through for everyone.
Investing for a world of change Previously Investec Asset Management
Investments involve risk; losses may be made.
M AGAZINE
CONTE NTS
CONTRIBUTORS
May 2020
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Ed's Welcome
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Better Business
Richard Harvey A distinguished independent PR and media consultant.
In this month’s column, Tracey Underwood of PACE Solutions looks at the role of the administrator within the financial planning firm
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Michelle Hoskin Michelle Hoskin doesn't mince her words as she explains why confidence and steady nerves are needed if your business is to come through this
Tracey Underwood Founder of PACE Solutions
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Tony Catt The advisory business has always benefitted from face to face meetings, so with remote working now the new normal, what impact will this have
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Phil Calvert
Michael Wilson Editor-in-Chief editor @ ifamagazine.com
Sue Whitbread Editor sue.whitbread@ ifamagazine.com
Now is the time to engage with IFA platforms allowing you to share ideas, experiences and expertise on how best to support your clients
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Diane Chappell - The virtual adviser How can you make the most of working virtually in your advice business? Practical tips on how you can boost your success at conducting virtual meetings
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Faith Liversedge Thinking differently about the way we live, work and communicate
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Gunner & Co
Alex Sullivan Publishing Director alex.sullivan @ ifamagazine.com
Gunner & Co. reached out to the wider market and hosted a Q&A to answer M&A questions and offer insight from the team.
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PIMFA Liz Field, CEO of PIMFA highlights some of the key issues that have arisen and solutions being offered in these troubling times
Kim Wonnacott Technical Sales and Marketing kim.wonnacott@ifamagazine.com
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Fidelity International Chris Forgan, Portfolio Manager, Fidelity International on the impact and policy responses needed to the Coronavirus
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Insurance Doctor Daniel West of Apex Insurance looks at the implications of Covid 19 and complaints due to financial losses.
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Keith Richards, CEO, on helping members navigate these difficult times
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Investing in a healthier society: Continuing our mini-series, M&G’s Ben Constable-Maxwell looks how companies are addressing world healthcare needs
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Investing for equality of opportunities:
Ben Constable-Maxwell of M&G Investments highlights investment in businesses which boost equality and learning opportunities
Designed by: Becky Oliver IFA Magazine is published by IFA Magazine Publications Ltd, Arcade Chambers, 8 Kings Road, Bristol BS8 4AB Tel: +44 (0) 1173 258328 © 2020. 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. 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. IFA Magazine is for professional advisers only. Full details and eligibility at: www.ifamagazine.com
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Terence Moll, Head of Investment Strategy at 7IM, explains why it is never too late to diversify
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Don’t panic Mr. Mainwaring: The ill wind of COVID-19 is making Richard Harvey look for the positives that might eventually come from the crisis
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Career Opportunities From Heat Recruitment
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May 2020
E D'S WE LCOM E
VIRTUALLY
NORMAL
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oundbites, cliches and metaphors, a dialogue more reminiscent of a former wartime era has been tripping off the tongues of our news presenters and newspaper columnists over the last three weeks : keep calm and carry on, we are all in this together, and even Her Majesty added a Vera Lynn-esq ‘we will meet again’ in her steadfast and regal way; all we need is ‘dig for victory’ to complete the set. Here at IFA Magazine we too have had to adjust and make changes while we hold our breath along with everyone else to see the infection curve diminish and the grim daily totals decline. The impact on the nation’s economy and the fallout at a global level will be bad, let’s not sugarcoat it, it may take generations before we find our way back to where we were pre-Covid 19, if in fact we ever do. The level and extent of the Treasury’s fiscal interventionism is unprecedented. Even if we ignore for a moment that this is a government whose a priori intent was for small government and big business, and that their intervention was necessary, the question remains as to whether it has gone far enough to save the SMEs and start-ups, the entrepreneurs and sole traders. In our next issue we will be joining up with our sister magazine GB Investments to look specifically at the impact on this part of the sector. As I write this the news coverage has switched from China to the US economy and the total collapse of the price of oil. What will the world be like for financial institutions and financial planners once all of this is over? For once I’m going to admit that I really don’t know. What I do know with absolute certainty is that although it may be bleak out there at the moment the fundamental resilience of human nature is remarkable and the need for professional financial planning will be greater than ever before. In this month’s edition we recognise and reflect the speed with which creativity and flexibility has emerged in the rapid rollout and adoption of the technology needed for us to shift to work in our new ‘virtually normal’ homes.
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We invited Faith Liversedge to talk to us about how best to adapt and think differently about the way we live, work and communicate and in her regular feature Michelle Hoskin reminds us to be confident and hold our nerve in these difficult times. Tracey Underwood looks at the importance of the role of the administrator within the financial planning firms and Tony Catt explores how the lack of face to face engagement may impact on relationships between advisers and clients. Even if you were reluctant to engage with social media or with IFA platforms before this, Phil Calvert suggests that now may be the time to join in so you can share ideas and expertise on how best to support clients. Continuing our mini-series on investing in a healthier society Ben Constable-Maxwell brings us a look at how companies are addressing world healthcare needs and highlights investment in businesses which boost equality and learning opportunities. With the war analogies up front and central Richard Harvey, in his inimitable style, evokes Dad’s Army to look at the positives for us. Society, communities and individuals will emerge from this with a totally different perspective on what and who is important to each of us and collectively as a nation, whether that be recognising key workers for their superhuman efforts or remembering to thank your check out assistant at the supermarket or the delivery driver occasionally. That has to be a silver lining or maybe even a rainbow at the end of all this. You know we love to hear from you, so get in touch with your stories of how you are coping. We have had lots of readers ask us to swap office addresses to home addresses so if you would like us to update your record just let us know. Stay Safe – Stay at Home Editor IFA Magazine
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BETTE R BUSI N ESS
THE ROLE OF THE ADMINISTRATOR All too often the role of administrator is overlooked within the financial planning firm. Tracey Underwood of PACE Solutions has some practical tips for boosting your business success being more focused on the importance of administration
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ver the years, many articles have been written on the role of the paraplanner and financial planner. However, the role of the administrator within the financial planning business is one which, all too often, has been overlooked. In this month’s Better Business, I shall look at some aspects of the administrator role and give some practical tips for firms considering their approach. THE OLD DAYS Historically, financial planning firms have tended to keep their administrators in the background. They would very rarely meet with the client. Their main functions included, but were not limited to, new business processing, collation of letters of authority and liaising with product providers. MODERN PRACTICE Now, with increasing focus being attached to the delivery of a high quality financial planning service, the role of the administrator has taken on new – and much deserved importance. The administrator role now encompasses
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Historically, financial planning firms have tended to keep their administrators in the background
a more client-facing role, thereby helping to ensure a more effective and efficient delivery of the firms’ service proposition to clients as well as more effective working practices for planners and paraplanners. And it’s not before time! Administrators (or Client Services as is a term often used) may now be involved in arranging and sitting in on client meetings, accompanying the planner and paraplanner in a team approach. They may also be obtaining cashflow details or organising client paperwork (remember the bag of paperwork that the client brings to the meeting?). This all needs sorting out so using administration support takes the pressure off paraplanners and planners and brings added value to the business. It also helps the individual administrators to upskill, to develop their own knowledge and skills thereby boosting their job satisfaction too.
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Introducing the administrator to your client at the beginning of the relationship provides them with the opportunity to liaise directly with the client on tasks, which may have previously been taken on by the paraplanner and financial planner. Take the time to consider how you currently use your administration team and think about what is missing and needed from the process. There are likely to be many ways in which you can utilise their skills and harmonise the team approach for everyone’s benefit.
May 2020
Many local colleges now provide financial planning firms with the opportunity to recruit school leavers with a focused career path in customer services through practical work, vocational and financial services qualifications
THE QUESTION OF RECRUITMENT But what happens when you need to recruit a new administrator? Traditionally, firms would recruit a new administrator based on their previous experience in financial services, whether that is within an IFA firm or with a product provider. Firms are now looking outside of financial services for recruiting individuals. High on the list of preferred experience is for the individual to have strong customer service skills as well as experience of organisation and process planning. Firms are also turning to apprenticeships as a route to bring new talent into the industry. 1. Experienced Candidates By bringing in skilled individuals, you can provide a front line, client-focused service for the firm, which can be widened to the rest of the team. Previously, firms may have not given much consideration to aspects such as how the phone was answered to external calls (and whether this was done consistently), how to optimise diary management as well as how to build and follow business processes within the firm. We will all recognise that the process of engaging and transacting business with a client may take several months. A highly skilled client services administrator can ensure that the client is kept informed throughout the process, something that is often overlooked, particularly when clients are deluged with copious amounts of paperwork. It can make the whole process far more straightforward – and enjoyable - for clients if they have someone from your team on hand, a friendly face and cheerful contact at the end of the phone, to steer them through. 2. Apprenticeships Many local colleges now provide financial planning firms with the opportunity to recruit school leavers with a focused career path in customer services through practical
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work, vocational and financial services qualifications. There may be some requirement for the apprentice to attend the college for a proportion of the week to continue their studies but the majority of the time is spent in the workplace. The cost to the business of doing so is relatively small compared to the benefits which taking on an apprentice can bring. It provides the firm with someone who can learn quickly and be moulded into the team and your business processes. It also provides the apprentice with a structured career path whether that is within client services or ultimately beyond as their knowledge and skills develop. Firms can contact their local college for details of customer and financial services apprenticeships. Administration is an integral part of the financial planning process. Done properly, it can transform the client experience and also free up time for planners and paraplanners to dedicate to other parts of the process. Recognising that an effective financial planning service is best delivered by a team of people working well together is crucial. And the role of the administrator should be right at the heart of it.
About Tracey Underwood Tracey is the owner and founder of PACE Solutions. The business provides support for financial planning firms by focusing on operational practices including; recruitment, compliance, processes, client proposition and business strategy. This is achieved not only through a consultancy process but by hands on implementation to ensure that firms achieve effective results that would otherwise not be achieved through consultation only.
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May 2020
M ICH E LLE HOSKI N
DISASTER STRIKES In her regular feature Michelle Hoskin doesn't mince her words as she explains why confidence and steady nerves are needed if your business is to come through this.
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t is amazing what we can all achieve when we have to. As ‘they’ say… “diamonds are rocks that did well under pressure” and, given what is currently going on, I really hope that is the truth.
My fear however is that, while many will thrive during these turbulent times, there will certainly be many firms that simply were not prepared either physically or emotionally to adapt to the immediate and rapid changes which have been forced upon them. Luckily our client firms fall far away from the latter group. Why? Well, first of all, we teach them to think and act like businesses. They approach everything with a mindset of possibility. The possibility of the opportunities available to them in the future as well as the possibilities of the risks that could present themselves at any point. As a standards body and consultancy business we have in place a robust Opportunities and Risks Register, a Disaster Recovery Plan and a Business Continuity Plan which are deliberately designed to keep us one step ahead - ahead of, well, pretty much everything. Foresight is a business skill that we all need in our kit bag.
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WHEN DISASTER STRIKES An illness or death of a business owner, an unexpected flood in the office, the resignation of a key member of your team or even a global pandemic; yes, of course, these are all terrible events but they do come loaded with an opportunity to see what is really going on in your business and to see where the real failings lie. So, for those who have suffered any of these (excluding COVID-19 of course) how did you cope? What happened? What did you learn? How did you bounce back? There are three key areas for consideration in every business each one of these needs to be discussed at the top of the agenda way before the realisation of any event. These key areas are: • the business • the team • the clients. … and in that order!
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While I know many businesses do this, clients should never be at the top of your planning list! Think about it… even given the events of recent weeks, without a solid business and a supportive team in place the clients would not have access to the support and guidance that they have so desperately needed! Business and team come before the clients every day of the week! So, what’s needed when disaster does strike? THE BUSINESS AND THOSE WHO LEAD IT! ‘Mud’ rolls down hill and if those at the top of the food chain start to lose their nerve in any event the whole thing will fall apart. Confidence and leadership have to come from the top. A strong focus and vision from those who are steering the ship through choppy waters will pay dividends in the long term. This of course assumes that those steering the ship have the skills, abilities and attributes to do so! A
A strong focus and vision from those who are steering the ship through choppy waters will pay dividends in the long term
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May 2020
focus on the direction of travel and a perfectly designed plan which has been coherently communicated will kick start every business continuity and disaster recovery plan. A client and friend of mine, David Braithwaite, who runs Citrus Financial in Tonbridge, Kent, was skiing for a friend’s 50th birthday in February 2016. His first day in Austria was a perfect day for skiing. As he went to put in the first turn of the trip, then the second, he caught an edge. His right ski clipped off, but the left one didn’t. After what can only be described as his best midair ski performance in his life, he found himself spinning one way while his left ski stayed where it was, firmly dug into the snow. Along with his foot in the ski boot that was still attached. The long and the short of it was David severely broke his leg/ankle, with a spiral fracture to both his tibia and fibia. After two operations he found himself bed bound for nearly nine weeks. How did he get on? Well as you would expect being a client of mine, he had a great business, a well-structured and awesome team, well-rounded clients who were not obsessed with seeing and speaking only to him, a phone and a laptop! What more could he need? “I had no choice but to see how good things really were with the business and team. Yet – they took over. They more than managed. They more than coped. They stepped up and as a result they had their best month ever in March 2016 despite me being in bed for most of it!”
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M ICH E LLE HOSKI N
So, let’s take the recent events as a little warning to you that we have to keep changing, we have to keep growing, keep developing, keep thinking differently, keep empowering our teams and allow them to step up; allow them to flap their wings and test what they can do when they have to. Nobody achieves great things when they find themselves trapped in a matchbox like a butterfly flapping their wings, so desperate to show you how beautiful they can be. The stories could come thick and fast; we have had deaths in our client families, whole offices burnt down to nothing but a pile of ash, marital breakdowns which have sent shockwaves and a ripple effect through the business which has taken years to recover from. Nothing surprises us anymore but one thing is for sure if you want to not merely survive through turbulent times, you have to expect that absolutely anything could happen, to anyone at any time. It takes a solid business lead by business thinkers to pull this
If you want to not merely survive through turbulent times, you have to expect that absolutely anything could happen, to anyone at any time
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off, sadly, it needs more than a financial planner thinking like a financial planner to make it through whatever the universe decides to throw at you. About Michelle Hoskin Michelle Hoskin (aka little Miss WOWW!®) is well known for her endless enthusiasm and energy, infectious personality and unique outlook on what she describes as a “magical profession”. With over 20 years’ experience working alongside some of the world’s most successful financial services organisations, Michelle is an internationally recognised author, speaker, coach and leading expert in the design and implementation of international framework-based best practice standards. Michelle is pioneering a drive towards increased professionalism and operational excellence through her continued work at Standards International – the UK’s premier certification body for British and international financial services standards – of which she is the founder. She also most recently led a sector committee whose objective was to develop and launch an exciting new international standard for professional paraplanners. Relentless in her pursuit of a global movement of change within financial services, Michelle is fully committed to supporting financial professionals worldwide to achieve things they only dreamed were possible, and to working with them so that they become the best possible version of themselves.
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TONY CATT
May 2020
ANCIENT CHINESE CURSE MAY YOU LIVE IN INTERESTING TIMES!
The advisory business has always benefitted from face to face meetings, so with remote working now the new normal Tony Catt explores what impact this may have in the longer term.
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r Trump, in an effort to apportion blame, has called it the Chinese virus. Whilst celebrating his viewing ratings and being number one on Facebook, he has taken some time to realise how serious the whole Coronavirus Covid-19 is to the world. But then, he would be out of his depth in an intellectual paddling pool. But his naivety in his press conference does have some entertainment value. In that respect, he is the gift that keeps giving. In the UK, the Government appears to have been slow to react and has struggled to get equipment and medicines to where it is needed. It has managed to turn the ExCel Centre in London into the Nightingale Hospital London in 9 days, which is remarkable. There has been a welcome return to trusting experts and the approach and timing of measures appears to have been considered. The Government has been radical in the economic measures that it has taken to try to protect jobs and businesses with a view to having some infra-structure still in place to kick-start the economy after the crisis is over. All previous spending plans have been eclipsed, both here and in the US, and it will take some time for economies to recover.
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There is a welcome introduction of sensible politics, last seen in the Financial Crash in 2008. Rival politicians seem to be being reasonable, asking inciteful questions of members of the Government and not wasting any time scoring cheap political points. Long may that last. We can all be thankful for the wonderful work being done by the NHS, shop workers, teachers, carers, delivery people and the supply chains that have enabled us to keep going at this time. Fantastic that so many of our “key workers� are so cheap to employ. Hopefully, this crisis will make our society review our values and pay these people what they are really worth. The Thursday night clap and other good work
Hopefully, this crisis will make our society review our values and pay these people what they are really worth
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May 2020
TONY CATT
has seen a welcome rise in community spirit. But what would mean more going forward would be decent pay and working conditions for these people. In the UK, the housing market has come to an abrupt stop. People are being advised not to move house at this time. Surveyors not valuing properties. Lenders reducing their maximum loans to value to 60%. So only product transfer and some re-mortgages may proceed. So, there are a lot of mortgage advisers kicking their heels at the moment. Perhaps this should be the time that they re-visit their business and write all the protection that they should have offered previously and not found time to complete. The FCA has stated that it would encourage advisers to work from home wherever possible and minimise the amount of travelling and meetings that they attend. WORKING FROM HOME This crisis could have a long-term effect on how people work in the future. For may people, it may be the first time they have worked from home. For those that really enjoy the office environment, this could be a very difficult time as they will not like the isolation of working from home. For others, they will wonder why they spend so long getting to and from the office on a daily basis. When I travel around by car, I invariably end up in some town’s rush-hour and wonder why the locals go through that every day. The employers need to trust their staff, which is often why employers are reluctant to allow people to “work from home�. But this brings us nicely into an application of the SM & CR Codes of Conduct and company ethics. How do people behave when their boss is not looking? For many people, their activities can still be monitored. But for others, it will be up to them to structure their time
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to undertake their duties. Working from home requires discipline and structure and probably routine. Sorting out their workstation to make sure everything works and they can perform their duties. Making sure that they are dressed and ready to work at a certain time. Starting and stopping at certain times. Taking breaks at certain times. I have worked from home for many years. Actually, making sure that I do my job is not simply an act of righteous good behaviour. My motivation is that if I do not do enough work, I cannot pay my mortgage or other bills. Quite a stark reality. Nearly all of my business can be done remotely from my clients with the provision of various logins. I could literally work from anywhere in the world with an internet connection and indeed I keep my work ticking over whilst on holiday by answering emails and doing little bits in the times when I am in the hotel room. SEMINARS BECOME WEBINARS Many businesses are keeping in touch with their staff by conference calling and or Skype calling. This enables some face to face contact and conversation which seems to be preferable than an old- fashioned telephone call. Many businesses are already running training sessions for their staff by conference call and computer-based training. Providers have historically run seminars to get their messages out. I attend some seminars with providers, but the main benefits are meeting other advisers and picking up pens and mugs. Holding webinars gets the same message out, without the expenses of a venue and hospitality. It saves the audience expense and time travelling to the venue.
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TONY CATT
Webinars and conference calls tend to be shorter and more succinct. Literature can be sent be email. So, no wasted stationery costs. I am sure that there will still be seminars in the future as they are good social occasions, but I wonder whether they will become rarer as providers realise the efficiencies in cost and time that are offered by webinars. I have run a whole training and competence campaign of meeting observations with a firm by Skype. I ran through the whole advice process involving first meetings and presentation meetings for 11 advisers in separate Skype calls with feedback by emails and file notes. The firm was based in North Devon and I am just outside Brighton. BUSINESS AT A DISTANCE Whilst for many, financial advice is still thankfully a faceto-face people business involving meetings at an office or at the client’s home, there is quite a lot of business already transacted almost entirely by telephone and emails. It will be a difficult time for those advisers who thrive on the personal meeting and the relationship building of the regular face-to- face meeting. But I wonder whether even these advisers will see the advantages of some communication being done electronically. THE NEW WORLD It may well be that this time of enforced isolation will lead to changes in the way we interact in the future. It will certainly lead many business to review the way they work and how they communicate with their clients. The realisation of how much time we have all spent travelling
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May 2020
It will certainly lead many business to review the way they work and how they communicate with their clients
or how much stationery is wasted producing paper copies of literature and documents. It is likely to see increased uses of technology to streamline operations. Perhaps accepting instructions by email, accepting pf copies of original documents, using electronic signature software, cloudbased CRMs and portals. Whilst the increased use of technology may change some practices, I still believe that there will be a high demand for face-to-face financial planning advice. We live in interesting times. Stay Safe Be Kind whenever possible. It is always possible About Tony Catt Formerly an adviser himself, Tony Catt is a freelance compliance consultant, undertaking a whole range of compliance duties for professional advisers. Contact Tony info@tonycatt. co.uk or call 07899 847338.
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May 2020
PH I L CALVE RT
WHY COMMUNITY AMONGST
FINANCIAL ADVISERS IS NOW MORE IMPORTANT THAN EVER BEFORE Social media might not bump up your leads overnight, but Phil Calvert explains why now is the time to engage with IFA platforms allowing you to share ideas, experiences and expertise on how best to support your clients.
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ack in late 2002 I began thinking about running an experiment with financial advisers to see if they would use an online group on a social networking platform to interact and engage with each other – a kind of industry watercooler.
most IFAs only generally networked with each other by accident – at industry awards, exhibitions, provider events etc. But now there was a new way for financial advisers to network with each other twenty-four hours a day should they want to.
To put this into context, you need to bear in mind that in 2002, social media as we know it today didn’t exist. Yes, people were communicating with each other on a few platforms (Ecademy, MSN Messenger, Friendster), but the likes of Facebook, Twitter, Instagram et al were still but digital twinkles in entrepreneurs’ eyes.
TURNS OUT THAT A GREAT MANY DID WANT TO
Xing and LinkedIn were the first big networks out of the blocks in 2003, both of which broadly modelled what Ecademy had been doing since 1998, though Ecademy never really got the recognition it deserved as essentially the world’s first B2B social networking platform.
Our little online community for financial advisers soon reached four hundred members, and then plateaued because there just weren’t any more advisers out there who were ready to take a plunge into the world of social networking. Very few advisers even had a website – let alone profiles on social networking sites. So we created another version of the group on LinkedIn and also on its own standalone website, and slowly but surely more and more advisers started to join.
So I created a group on Ecademy (much like a group that you might find on LinkedIn or Facebook today), and I invited some of the more tech-savvy IFAs I knew to join, where they could network, share best practice, exchange ideas, moan about providers, get marketing ideas and more. Having spent the previous twenty years with the likes of NEL (broadly now UNUM) and Zurich Life, I knew that
Fast-forward to 2020 and our LifeTalk community for advisers has a presence on LinkedIn with 7,100 members, Facebook with 2,080 members and a brandnew marketing and lead generation focused group on the Mighty Networks platform. IFAs still use the groups in the same way – to network, share best practice and to provide help and support to one another, but it’s
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not surprising that conversations have recently turned towards more pressing matters such as COVID-19.
with each other rather than when using it to attract professional introducers and new clients.
There are occasionally tensions too. In any online community in any industry you will see some individuals standing out from the crowd for the wrong reasons, but over the years, members of LifeTalk have rarely caused us too many moderation issues. Since 2003, we have only ever had to ban two members, though since the Coronavirus started to take hold in the UK, we’ve not surprisingly seen the occasional bout of ‘tetchiness’ amongst one or two members as stresses begin to surface.
Most IFAs rarely attract new clients with social media for one main reason – they don’t have a formal social media plan which seeks to engage with their ideal client avatar. And there is still a sizeable percentage of advisers whose compliance regime is stuck in the ark, thus restricting any meaningful use of social media which most other industries and professions enjoy. I also work in the Pharma industry and even they are now realising that online engagement between doctors, influencers, drug companies and indeed patients is now a normal part of business life.
But training and personal development is one thing; what is important more than anything right now is a sense of Community
What is bizarre amongst UK financial advice firms is the wildly different approaches taken towards compliance and social media – with more enlightened firms being completely relaxed about what their advisers use it for, coupled with random sampling of posts - to firms that won’t allow their advisers to even post about their favourite football team without it being approved first.
Most members first thoughts have been to their clients, and our groups have seen a never-ending stream of helpful suggestions on the best way to communicate with clients during this uncertain period.
In the meantime, social media has been at its most valuable amongst financial advisers when used to grow community. That said there is still a hard-core group of financial advisers who use online communities to do the exact opposite, and who relish in criticising and attacking other adviser’s business models – and often business models that are successful by any measure.
But tetchiness can also be a sign of underlying anxiety, and it’s clear that many financial advisers who rely on a steady supply of leads or referrals will struggle. Several advisers within larger advice firms have privately told me that leads have completely dried up. For my part I have been hosting lead generation training via Zoom webinars and last week alone I presented to around three hundred advisers. But training and personal development is one thing; what is important more than anything right now is a sense of Community. As more and more social platforms have emerged since 2004, IFAs have repeatedly been sold the idea that social media will attract new clients to them by magic. In fact, my own research suggests that fewer than 5% of advisers in the UK can rely on their social media activities to attract clients. But what has emerged is that IFAs get more value from social platforms when networking
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This must stop if the profession has any hope of uniting in a way that enhances the perceived value of obtaining professional financial advice – which, let’s be honest will be increasingly important as we work our way through the current Coronavirus pandemic. To their credit, the majority of IFAs in the LifeTalk community on Facebook have stepped up to the mark and are freely sharing ideas, experiences and expertise around how best to support clients during this challenging period. Community matters, and played right will be the ultimate vehicle for promoting and marketing the value provided by the profession. Philip Calvert is an author, speaker and marketing consultant to financial advisers
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May 2020
DIAN E CHAPPE LL
THE VIRTUAL ADVISER How can you make the most of working virtually in your advice business? Diane Chappell, leadership coach at Curiositas Leadership Limited, provides practical tips on how you can boost your success at conducting virtual meetings
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igh performance. When you hear this term what does it bring to your mind? Is it high levels of profitability? Marketing and generation of new business? Developing trusting relationships with clients as you support them through the financial planning process? In all probability, for many, with the advent of the coronavirus pandemic and its impact on the world and markets, your relationship to performance has been radically altered, as has your way of working. HIGH PERFORMANCE VIRTUAL LEADERSHIP
Keeping in touch with members of your team, your client base and your critical partners has, in many ways, never been easier. We all have access to on-line conference and meeting tools but how easy is it to use them effectively? Can you do so in a way which really allows you to maintain business, allay the fears and address the concerns of clients and provide your team and/or you with a balanced working life? These things may not be so simple to achieve. I’ve had feedback on this subject from a wide variety of business leaders from a range of different sectors over the
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last few weeks. In this article, I shall explore what they have been saying and provide some simple tips and techniques which might be helpful to you in your financial planning business as you get to grips with working virtually. They may even help lead the way to a new norm in working and meeting practice so driving your business forward for higher performance over the longer term. Some of the simple things you can do to become more efficient and effective in holding virtual meetings are as follows: “MY VIRTUAL MEETINGS KEEP FALLING OVER” Schedule them to start away from the hour or half hour. These are the times everyone else around the world is logging into their meetings. You can have some fun starting yours at 13 minutes past the hour or 17 meetings to the next one. “I’M FINDING IT ALL RATHER EXHAUSTING”. “THERE SEEMS TO BE NO OFF BUTTON” For many, working virtually is simply business as usual. However, if you are new to virtual meetings or new to them
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in this context it can feel exhausting. So what can you do to ease the pressure? 1. Try to ensure you are not doing back to back virtual meetings. If possible, allow yourself some time to step away, stretch your legs and move. This allows us to refresh our thinking or to complete on one activity before starting the next. In a work environment we are more used to walking to different meeting rooms, getting in the car to drive to our next venue, meeting different clients etc. all of which act to break up our day. 2. Create your own set of boundaries which help you to manage the length of your day and to do it in a way which also allows you to manage other completing priorities – children, dogs, exercise etc. Just because we are working from home does not mean we should be “on” 100% of the time and especially not into the evenings and weekends. Think about a rhythm that would be really healthy for you and your work style preferences. 3. By taking responsibility for the shape of the day and how we need to work we are starting to demonstrate our leadership of ourselves. As a result, we are more likely to feel energetic and resilient through this time of rapid change and adaptation. Invite others to do the same and maybe share some ideas and practices “NO-ONE WANTS TO TURN THEIR VIDEO ON” Here’s another opportunity for you to bring leadership. Not everyone is going to be comfortable with turning on their videos and for some it is not even possible. I’m used to virtual working yet many of my clients based in China struggle with having sufficient bandwidth to be able to incorporate video into the calls. But you can adapt to this problem:
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Working without video •
Inviting others to bring their coffee/tea for a virtual cuppa can create a feeling of ease to have a drink available. We normally think of a drink as a stopping point or pause in our day or see them as a social activity.
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Inviting people to share where they are working – it might be a home office or dining room but it might not be. Explore who else is around (partner, children, barking dog!) so you can get a little into their world and some of the challenges of working in this way.
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Tune up your listening skills and focus. Being more attentive to the unsaid messages in their tone, expressions and concerns etc. can help you support those on the call to have a better experience as you work together. So much of working with others is supported by non-verbal cues. This is a reason why working virtually can be quite tiring – we can’t rely on normal habits.
• Sharing your intention for the conversation at the start to bring clarity. • Checking how much time they have – They may have other commitments and then you don’t overrun or outstay your welcome. •
What is their experience of virtual meetings? It’s likely that your colleagues will be used to it through regular conference calls and webinars but clients might not be so in tune. However, things are changing rapidly with both personal options such as facetime, house party etc. through to much more corporate offerings such as Zoom, Skype, Teams ++. Take your time and be patient.
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Prepare and practice. Perhaps you can invite people to explore turning their video on and be ready to talk the through how they can minimise their own image and have the images of others instead? Ensure that you are familiar with all the navigational controls and tools
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available for the particular package you are using, including how to share your screen and data – practice makes perfect.
interrupt the extrovert whereas you may need to encourage the introvert to share their perspective and reflections. When others join:
“IT’S NOT THE SAME AS MEETING TOGETHER AND PICKING UP ON THE BODY LANGUAGE” Virtual will have to come a long way for it to be the same as face to face meetings. However, with a high performance mindset we can bring attention to the other person/people in a way in which it can be a brilliant alternative. Get yourself ready • Think about your audience and your intention with specific objectives as to the outcomes required made clear to everyone involved. •
Ensure your system is working and that your lighting enables the other person to see your face (a warm coloured light bulb can soften our features and is much kinder than bright sunlight).
• Run through your agenda/intention • Establish what they want to achieve from the conversations as well as sharing your intention. • Establish how long do you each have? •
• Keep checking in with everyone throughout the call it helps them stay present to the conversation and lessens the likelihood that people are multitasking on their phones
• Have any materials you want to share open on your laptop/computer. Sharing is then really easy. • Have an open email to the others joining you whether clients or team members. You can then quickly circulate documents in one hit after the session. •
Think about your audience, exploring in your mind whether they are extroverted or introverted as they will need different things and will also need you to facilitate differently with them. You may need to be ready to
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Ensure you check in on their general wellbeing and mood. Whilst not asking directly, we can understand if people are pre-occupied or ready for the conversation. Many people are finding the current restrictions on life very stressful. This can be particularly so if you have vulnerable loved ones who you can’t visit. If you are extroverted you may not like the constraint “social distancing” imposes on you.
o How are you? o Any questions/concerns? •
Don’t try to do too much in one meeting. Whilst these sessions can be very focused, people may not want to be on them for long periods of time. Put in breaks if you want to run for more than 1.5 hours. When training, the maximum time on line is about 3 hours but you do need breaks.
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• At the end, summarise action points and circulate notes to confirm them including details on who has agreed to do what. “AS AN INTROVERT, I’M QUITE LIKING THIS!” I’ve heard this said a few times recently and it makes me smile. Our use of open plan offices, the volume of devices all alerting you to new demands and requests isn’t to everyone’s liking. For an introvert, having space in a quite room at home with no-one walking up to them with questions, no meetings to go to can be bliss. However, even introverts want to feel connected, be in the loop and have enough information to feel they are not missing critical information and communication.
Focus your intention on being a fantastic facilitator by hearing from and engaging all involved
May 2020
In office life, you wouldn’t dream of going to a face to face meeting without being properly prepared for it. The same applies to your virtual meetings, maybe even more so. If you want to make sure that the use of everyone’s time is maximised and that you achieve the results you require, then a little bit of thought beforehand goes a long way to ensuring success. https://www.curiositas.co.uk/ https://www.linkedin.com/in/dianechappell/ About Diane Chappell With a background in organisational development, Diane spent 20 years consulting into global organisations designing and leading programmes to enable leaders engage people in complex transformation and change programmes. Now based near Bath, she continues to coach senior leaders in global organisations, often virtually, through her own consultancy Curiositas Leadership Limited. In addition to executive coaching Diane offers leadership development and high stakes facilitation services using her Curiositas Method.
Our job as leaders is to make this as easy for them as for others. Focus your intention on being a fantastic facilitator by hearing from and engaging all involved, whilst still holding the context and the timings (unless you donate this activity to another person of course) front and centre.
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FAITH LIVE RSE DGE
May 2020
HOW TO GET STARTED WITH EMAIL
COMMUNICATIONS To say that COVID-19 has been a game changer would be an understatement, Faith Liversedge talks us through how in just a few short weeks, we’ve had to think differently about the way we live, work and communicate.
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o how best to communicate while also taking into consideration the health and wellbeing of our friends and families?
1. HOW TO BUILD AN EMAIL LIST FROM SCRATCH
Naturally for many financial advisers, communicating with clients has had to change. This has meant new decisions have had to be made very quickly – both about the method of communication and the content of those communications.
Email is the most reliable way to communicate with customers at scale and the most effective tool in your marketing arsenal. Email marketing has the highest return in investment of all marketing activity, especially in B2B and high-value niches.
I’m sure you’ve been inundated with COVID-19 related emails and deleted many of them straight away. No one wants to send those types of emails. But saying nothing is not an option either.
You might not think you have an email list, but as an established business you’ll already have access to email information from past clients, current clients and prospects. Now you just need to gather it together. Think about your back office system, your invoice software, your personal inboxes, even your internal documents management material.
So how do you get started if you’ve not carried out mass client communications before? And if you have, how do you make the transition from market information updates towards something more personal? I’ve been helping financial advisers with 3 main aspects of this, so I’m going to share those thoughts, tips and tools here: 1. How to build an email list from scratch 2. How to choose the right email platform 3. How to create content that gets you noticed
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• Collate your data into a central spreadsheet like Google Sheets • Export as a .CSV (comma separated values) file – this is what your email platform will require • Think about tagging them into different client segments Personalising your list at this stage will stand you in good stead for the future when you want to send different messages to different segments. This is where email can
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• To be compliant with data protection regulations
Email is the most reliable way to communicate with customers at scale and the most effective tool in your marketing arsenal
become really powerful, because the more targeted it is, the more likely it is to get read and inspire action. One of the reasons we’re getting irritated with so many COVID-19-realted emails at the moment is because often they’re sent on mass, from companies who have no real knowledge of us and what we’re interested in. What you want to do is the opposite of that. So if you’ve already segmented your clients into life stages from a regulatory perspective, now is your chance to use this to your advantage with your marketing. That way you’ll provide exceptional value to medics, for example, but you won’t bore non-medics with irrelevant information about the details of their NHS pension.
• Create a professional, consistent look and experience • Integrate with other tech such as calendar scheduling • Handle unsubscribes and list management I’ve used lots of different email platforms, from Hubspot to Convertkit to Send in Blue. All have their pros and cons, but for most of my small business clients I recommend either Sendfox or Mailchimp. Both are easy to use, low cost and especially suitable if you’re just starting to send mass mailings. 3. HOW TO CREATE CONTENT THAT GETS YOU NOTICED The most important thing is to stay on point but without stating the obvious. This is true now and always. Stating the obvious would be telling people you’re aware of the situation (everyone already is) or that you’re taking measures to keep employees safe – this is an obvious point too. Unless you’re particularly hard hearted normally and this is news (!) everyone assumes you’d be doing the right things for your people.
2. HOW TO CHOOSE AN EMAIL PLATFORM Using an email platform instead of sending your emails through your own email system provides a number of different benefits. Good email platforms allow you to: • Add personalisation
The most important thing is to stay on point but without stating the obvious
• Track data on open and click-through rates
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What you need to say is: • Express empathy and show solidarity. Share your own take on how you’re handling the ‘new normal’. • Show optimism – in the absence of facts, positivity can go a long way. We’ve seen lots of uplifting examples of generous acts; highlighting these helps to life the tone. • Provide practical updates that are genuinely of use, such as how people can get hold of you, when you’re available, and how they can use conferencing tools etc. •
Offer to help – simply offering to chat to find out how people are shows that you care about them. Tell them you can also put the impact of recent market performance and their longer-term financial plans into context.
• Provide links to useful resources – whether that’s market updates, or something to alleviate the boredom, such as virtual gallery tours and live concerts. Try to create an enticing subject line - avoid ‘coronavirus’, ‘COVID-19’, ‘pandemic’, as these are now over used and may well be marked as spam. Format wise I would always recommend keeping things short, adding headers and images to break up the text and to make it more readable. Try and use conversational language rather than formal, official sounding wording, and always try and keep in mind ‘what’s in it for them’.
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Without sounding opportunistic, I hope you can see how this unusual situation can provide you with an online platform to showcase your value and remind your clients why they work with you. If you do it right, and continue to show them this support, then your client will remember how you helped them at this time, and tell people about you for years to come. About Faith Liversedge Faith is an experienced communicator with a wealth of knowledge and understanding of the adviser profession. She was Marketing Manager at Nucleus for 5 years, creating innovative and award-winning campaigns. Before that she worked for Standard Life, Prudential and Royal London. In 2017 she set up her own consultancy to help forwardthinking financial advisers and planners to become more profitable through websites, communications and other laser-focused marketing techniques. Find out more at www.faithliversedge.com. If the idea of a Digital Marketing Report sounds useful to you, contact me on 07920 042240 to order yours now. Your 6-page Digital Marketing Report is available to IFA Magazine readers for £150 + Vat.
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GU N N E R & CO
HOW IS COVID-19
AFFECTING THE IFA M&A LANDSCAPE?
The market is facing unprecedented times and this has, unsurprisingly, resulted in a number of questions as to what this means for the IFA space - particularly around IFA M&A. To help add a little clarity, last week Gunner & Co. reached out to the wider market and hosted a Q&A to answer the industry's biggest questions and offer insight from the team.
Q: ARE THE NEXT 6-12 MONTHS A BAD TIME TO EXIT AND SELL? A: At Gunner & Co., we tend to work with firms for around two years before the actual sale, so this is a key question coming up from many clients – and there is no simple answer. We often find the best place to start is the target price the vendor has. If it was realistic three months ago, we can look to see if it can be achieved now. For deals likely to complete in the next six months, buyers are certainly being innovative to remain attractive to sellers. We have seen multiples increase in individual cases in the past few weeks, and mechanisms put in place to achieve growth in deferred payments, allowing sellers to share in the upside when markets improve.
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For businesses struggling with operating in lockdown, a sell at this time could be a way of enabling client continuity and security - some buyers, such as Octopus Wealth are well placed to help clients remotely: “At Octopus Wealth we have built a cloud based business that can advise clients remotely. We can help advisers who are finding it difficult to serve their clients by providing access to our technology to support their businesses, whilst also offering innovative solutions in the longer term to become part of our family, confident their clients are receiving the highest levels of service backed by a brand they know and trust.” Andrew McMillan, Founder of Octopus Wealth Some buyers are also factoring in all revenue rather than just recurring income for value calculations. However if you
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have just started the process of finding a suitable buyer, it’s unlikely the current market position will affect you, since the process tends can often take at least 12 months. Q: HAS COVID-19 HAD AN EFFECT ON THE PRICE BUYERS ARE PAYING? A: At Gunner & Co., we have deals in two key stages – pre financial offer and post financial offer. With deals where offers have been accepted and due diligence is in progress or complete, so far, we are seeing that buyers are largely honouring the offer made and, on occasion, actually improving terms. Only one buyer has sought to revalue the business in light of a change in income and even this gives the seller the benefit of a year’s market growth opportunity to recover the valuation. Where offers haven’t been made, many buyers are looking to be flexible to identify a middle ground which both parties can benefit from. So this could be longer payment terms to give sellers the chance to see the benefit of a recovered market while also having the chance to step away now. Or even in some cases, pre-drop valuations or increased multiples. Gordon Kerr, Ascot Lloyd’s acquisition director commented on this to us: “We’ve quickly adapted as an organisation to new ways of remote working, and proceeding with business as usual. We have honoured acquisitions which were agreed pre Covid-19, and remain active in the market for new opportunities. We are looking at various mechanisms to help both buyer and seller, including flexible payment terms to allow for market recovery” Many buyers want to buy and their motivations are fairly long term, so they would rather find a way to continue working on acquisitions now, in a way that works for sellers too. Q: WHAT IS THE CURRENT ‘STATE OF PLAY’ WITH POTENTIAL BUYERS? ARE THEY PULLING BACK COMPLETELY, CHANGING THEIR PRICES OR PLOUGHING ON AS NORMAL? A: I’m seeing varied reactions from our buyers - indeed two large players came out in the press last week with polar opposite stances.
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IWP for instance are very much moving forward with acquisitions, with David Inglesfield, CEO telling me: “While the circumstances around COVID-19 and, its impact on the markets, are unprecedented, I don't believe the current environment will meaningfully alter trends around IFAs looking for investment opportunities. If anything, it amplifies the need for investment in technology that allows for digital client communication. Clients will want to be able to check their portfolio and assets remotely at any time. We expect to continue to see local IFAs looking to join larger groups who can provide them with better operational capabilities. “Our current acquisition pipeline remains strong, although some terms may need to be slightly adjusted to meet current market realities. We see the overall direction of the market staying the same.” Many clients we are working with are ‘ploughing on’, although not necessarily as ‘normal’ – see the answer above on pricing and how buyers are innovating to secure deals. We know a few of the large buyers are pulling back, but generally this has meant deferral rather than withdrawal. Where time, cost and effort has been spent in reaching agreement, our experience so far is that buyers would be reluctant to abandon a project entirely. The response has been to either defer the acquisition or offer more favourable commercial terms. Decisions on what to do appear to be dictated by the acquirers long term strategy and how they are able to access funding. Buyers that have secured mutual agreement on a deal will likely prefer to defer rather than abandon a deal completely. Q: HOW ARE DEALS ‘IN PLAY’ BEING AFFECTED? FOR INSTANCE, IF YOU ARE SELLING AND HAVE APPOINTED LAWYERS AND HAVE STARTED DUE DILIGENCE? A: There will likely be somewhere between 100-150 deals started before lockdown was enforced. There are three key impacts in our view: the commercial viability of the deal; the ability to complete DD and legals, and finally, the client communications. Whilst previous answers look at buyers' commercial stance, in terms of completing DD and the legal work,
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with good technology, both of these elements can be completed with little to no physical interaction. Client communications can be a little more tricky. Deciding if this is the right time to share something like this with clients will depend on a couple of factors, for example, will the adviser be employed by the buying firm? Business owners should know how comfortable (or not) their clients are with their current financial situation and whether they would see a sale at this point as unsettling. That said, almost all transactions take place where the buyer is bigger than the seller and some firms are taking the view that the buyer could potentially offer clients more resources, more access to information and potentially more security. Q: ARE LAWYERS INCREASING THEIR FEES OR CHANGING THE WAY THEY CHARGE GIVEN THE CURRENT TURMOIL? A: We asked a couple of solicitors to help answer this one: Alex Canham of Herrington Carmichael: Despite the current turmoil I would not say that we’re seeing a shift in charging structures. We continue to offer a mix of fixed and capped fees, so if you have a clear deal structure, a fixed fee option should still be available. As for the level of fees, as a rule, I would not expect to see these increase. Fixed fees are usually determined by anticipating the level of work involved on the deal. So whilst some clients may need additional support, if the original deal stays the course then the fees should be as anticipated at the outset.
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Andrew Bretherton of Freeths: A lot of our legal M&A work is charged at fixed fees based on a pre-agreed scope of work and time frame and we will not be increasing our fees in the current difficult circumstances. We are fully set up to work remotely and continue to complete deals for our clients. We expect there to be a significant drop off in M&A work for the next few weeks/months but believe that the IFA sector will bounce back strongly when things get back to normal. We are in uncharted waters, both historically and economically, and with that comes uncertainty and challenges for the IFA space. But we are on standby at Gunner & Co. to do all we can to help alleviate any fears and offer our views.
About Louise Jeffreys Louise Jeffreys is MD at Gunner & Co. Louise has extensive financial services M&A experience, having helped facilities numerous transactions in her role at Gunner & Co. Louise works with clients to define their exit strategies, helping individuals and businesses to understand their aspirations, and how that relates to current market conditions. Louise is always happy to offer input and insight when it comes to IFA M&A and can be contacted at Louise.jeffreys@gunnerandco.com
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5 & 6 May 12 & 13 May
The Estate Planning Show Live. Online. At your place.
Join us for a CPD event that could make a real difference for some of your older clients. Hear practical advice about client segmentation and matching the right clients with inheritance tax investments. Explore ideas for approaching Power of Attorney cases, clients with large ISA pots who have an inheritance tax issue, clients who could benefit from estate planning but worry about losing access to capital, and much, much more. Please remember, the value of an Octopus inheritance tax investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Tax treatment depends on individual circumstances and could change in the future. Tax relief depends on portfolio companies maintaining their qualifying status. The shares of smaller companies could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
For more details, including how to tune in, go to: octopusinvestments.com/estate-planning-show/
For professional advisers and paraplanners only Octopus products are not suitable for everyone. We do not offer investment or tax advice. Personal opinions may change and should not be seen as advice or a recommendation. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: April 2020. CAM009469
May 2020
PI M FA
COMMUNICATING THROUGH COVID-19 Utilising and harnessing the power of technology for effective and continuous communication has never been so important in our profession. Liz Field, CEO of PIMFA highlights some of the key issues that have arisen and solutions being offered in these troubling times.
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ost of us are now getting to grips with the realities of working from home for a sustained period and, as we adapt to and learn new ways of working, a focus on maintaining effective communication with one another, our clients and stakeholders is paramount. PIMFA has a slight advantage here. We’ve had a working from home policy for years and eighteen months ago we refurbished our offices in City Road, necessitating a six-week work from home program, which proved very successful. Little did we know how useful that experience would be. Technology has been a major asset for us in maintaining both operational resilience and flexibility. Our communications are conducted via email, WhatsApp, Slack, telephone and Zoom. For the foreseeable future, our PIMFA Learning and Events (PL) program has now been reconfigured as an entirely online offering, providing podcasts, webinars and virtual training events to our members on such topics as suitability, DB transfers and vulnerable clients, amongst many others. Our PL Library allows members to access archive material from previous PL events, watch previous webinars on demand and download training materials as and when needed.
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Last week we also announced the launch of our Virtual Fest, to be held on the 3rd and 4th June. This two-day, digital learning package will cover the key streams as identified by our members as being the most useful to them in the current climate, including operational resilience. There is also a growing concern around investment scams. The City of London Police has recently reported a 400 per cent increase in Covid-19 related fraud within a month and Action Fraud has recorded total losses of nearly ÂŁ970,000 due to Covid-19 fraud since the start of February. In light of this PIMFA, will shortly be launching a Tackling Investment Scams campaign, highlighting this increase in criminal activity and outlining what steps can be taken in order to minimise these risks as well as signposting them to advisers. More on this will be announced shortly. We
A focus on maintaining effective communication with one another, our clients and stakeholders is paramount
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will need members help to socialise this further and to alert investors to the dangers. On the regulatory front, we remain in regular contact with the FCA, HMT, other associations and stakeholders on COVID-19, as well as other issues, and we have very regular virtual meetings with the FCA to deal with questions from our members on COVID-related issues. We are running a 30-minute live webinar each week, providing a briefing to our members on the issues we have raised with the FCA and the feedback they have given and on other relevant topics at this time. This is followed by a written briefing note for our firms. In addition, two weeks ago we wrote to the FCA’s Christopher Woolard outlining the key issues and concerns regarding the impact of the virus on our firms and are pleased to see that many of the issues we raised are addressed in their recent ‘Dear CEO’ letter. Temporary changes within the regulatory framework outlined in the letter include greater flexibility over client identification verification, supervisory flexibility over best execution until the end of June, a pause on the implementation of investment pathways and supervisory flexibility over the 10% depreciation notifications required under MiFID II until the end of September.
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Further, The FCA has announced in its Business and Fees Plans for 2020/21 that it is freezing the fees to be paid by the smallest 71% of firms for the next year and that small and medium-sized firms will have an extended period, until the end of 2020, to pay their fees, although larger firms will have to pay as usual. This illustrates how productive good communication is – regulatory forbearance has been achieved by constant and meaningful dialogue between firms, their representatives, regulators and government. By utilising the power of technology we can use different methods to achieve much of what we need to. Raising awareness of issues and exchanging views and experiences can be achieved using all the channels available to us. The profession’s role as a force for good is ever more relevant as we face uncertainty. Moving forward, the opportunities we have to make a difference will count both now and in the future. Keep safe and #stayconnected. Liz Field is Chief Executive of PIMFA
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FI DE LITY I NTE RNATIONAL
May 2020
'DEFENSIVENESS AND
DIVERSIFICATION REQUIRED'
Chris Forgan, Portfolio Manager, Fidelity International on the impact and policy responses needed to the Coronavirus
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e are only beginning to see the full impact of the coronavirus on economic activity as governments ‘lock down’ significant portions of the economy to stop the virus’ spread. In the coming months the true scale of the shutdown on global economies will become apparent, and the question is for how long we will be in a recession. Against this backdrop, we see defensiveness and diversification as priorities over trying to time a bottom in asset prices. Despite a late-quarter rally the S&P 500 fell 20% in Q1, its worst quarter since 2008, while the VIX hit all-time highs breaching the peak seen in the Global Financial Crisis. But it is difficult to compare the recent selloff with previous market events. The Global Financial Crisis was primarily a crisis of the financial sector which had knock-on effects for the economy as a whole. But this crisis is different, and the non-financial corporate sector is, for now, bearing the brunt of the impact of the economic shutdown required to help contain the spread of the virus. Policy responses have been swift, and while it seems only economic ‘lock down’ can stem the spread of the virus, monetary and fiscal policy can help to ease conditions for companies struggling with cashflow issues as demand falls. Monetary policy is helping the funding markets and
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keeping debt-servicing costs low for the corporate sector, whilst helping to drive government borrowing costs lower. Fiscal measures have also been swiftly deployed, as governments the world over look to support their populaces and businesses in face of this unprecedented economic shutdown. But policy is not a panacea for the virus itself, and its spread and containment is ultimately setting the timeline of this crisis. These policy responses will act as a tailwind when we emerge from this public health crisis, and unlike natural disasters like floods and earthquakes, capacity has not been affected and should be able to recover quickly once demand returns. We have seen tentative signs of this happening in China. But the virus’ spread continues with concerning signs in previously unaffected areas like India, and risks of a second wave in China that can’t be ignored. Given this environment, flexibility to allocate across regions and asset classes, as well as maintaining a focus on downside protection is of primary importance, and this remains our focus over trying to time the market hitting bottom. Chris Forgan Portfolio Manager, Multi Asset, Fidelity International
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May 2020
I NSU RANCE DOCTOR
INSURANCE DOCTOR CORONAVIRUS (COVID-19) THE MARKET Continuing our series on the IFA’s guide to Professional Indemnity insurance, Daniel West of Apex Insurance looks at the implications of Covid-19 on adviser firms’ insurance considerations with particuar regard to complaints due to financial losses.
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The UK economy is no stranger to economic challenges, the aftermath of Black Monday in 1987, the recession of 2008, and more recently Brexit to name a few. The costs and losses related with these events sit vividly in the memory and the impact of Covid-19 is likely to be different but no less damaging. The crisis has prompted countries all over the world to place huge restrictions on the movement of people and business to try and curb the spread of the disease. Inevitably, this has led to the market declining, and as a result, clients have seen the value of their investments reduce. As we know, whenever there are financial losses, claims are sure to follow. We have already been contacted by a number of our IFA clients notifying us of complaints against them from dissatisfied customers due to financial losses. I have undertaken a review of a selection of policy wordings and have found the conditions and exclusions of the wordings largely fall into one of three categories: 1. SPECIFIC INVESTMENT EXCLUSION The majority of the policies I reviewed contain a specific exclusion relating to investments, this excludes losses in investment due for depreciation or loss arising solely from fluctuations in financial markets. If you receive a complaint from your client and your policy wording contains this exclusion, then you should still notify the matter to your broker. You may be asked to undertake an investigation as to why the client is in this situation, if it is simply because of the performance of the markets and not due to an error or omission then your notification may be declined. 2. DEFINITION OF A CIRCUMSTANCE Under this wording, the definition of a circumstance contains ‘information likely to give rise to a claim’. My interpretation of this is that a notification would be accepted even if the client hasn’t made a formal complaint, this wording didn’t contain any exclusions relating to market fluctuations, therefore I believe your precautionary notification should be accepted by insurers.
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March May 2020
3. DEFINITION OF LEGAL LIABILITY This wording does not contain any exclusions relating to the fluctuation of markets, but under the definition of legal liability cover is provided for any negligent acts in the exercise and conduct of professional business. If there was no error or emission this definition will result in your notification being rejected due to losses from the fluctuating market. CONCLUSION We may see an increased number of notifications due to the social distancing measures currently in place. Advisors will be unable to have face to face meetings with clients as often as usual and there is likely to be more correspondence in writing. Email is less personal and often your clients may be willing to express mild dissatisfaction, it will then depend on what your policy wording states as a notifiable circumstance. I always advise our clients to err on the side of caution and always notify any circumstance however small it may seem. If you are unsure how your policy wording applies, I strongly recommend that you speak with your broker or a recognised expert as they will be able to answer any concerns you have. In any situation you must be careful to avoid a potential non-disclosure, I advise my clients that the insurer will be put on ‘notice’ and a formal complaint may be forthcoming to remove any chance of late notification.
About Daniel West Cert CII – Associate Director Daniel has been with Apex Insurance Brokers for 5 years and specialises in the placement of IFA and Financial Institution Professional Indemnity Insurance (PI). As an independent broker, Apex can offer one of the most extensive choices of IFA insurers available, with specialist sector and product knowledge to offer their clients some of the best terms available in the market. Their extensive IFA insurance experience allows them to fully understand your business, advise how to best present your risk and what insurers are best suited to your firm.
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PFS
May 2020
CPD AND FURTHER STUDY DURING
THE GLOBAL PANDEMIC by Keith Richards, CEO of the Personal Finance Society
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he coronavirus pandemic surprised us all with the speed of its advance worldwide. The Personal Finance Society reacted swiftly to ensure the safety of our colleagues, our members and our students, whilst also fulfilling our responsibilities as a professional body with events cancelled a few days ahead of the government lockdown. Our workforce quickly switched to home working and has been focused on helping members navigate these difficult times. Immediate actions included postponing some of our written examinations and re-purposing content which can be delivered in interactive and engaging formats online via digital channels. In keeping with our three key principles of Standards, Professionalism, and Trust, the PFS is emphasising the benefits of pursuing continued professional development to our members and the wider profession.
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By maintaining and growing their professional knowledge, our members are putting themselves in a position to provide greater value to their clients during these uncertain times. For those pursuing qualifications, now provides an opportunity for self-paced coursework and reading for getting to grips with complex issues such as SM&CR, for example, which has consistently been considered
Our workforce quickly switched to home working and has been focused on helping members navigate these difficult times
amongst the top concerns for CEOs, along with MIFID II. As compliance adapts to the digital age, keeping up with the new requirements can seem like a job in itself, and so
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PFS
Whilst we are all having to deal with the here and now, it is important to look beyond current challenges and plan for the future
this period can be utilised to catch-up with these changes, assess how your business is performing and identify where improvements can be made. The PFS has moved quickly to help keep members informed by switching publication of our member newsletter from fortnightly to weekly and uses this to signpost the latest news and resources for members. Similar updates are shared via our social media channels on LinkedIn and Twitter, and I myself am publishing a weekly blog, updating members on what we are doing including how we are engaging with regulator’s and government on a weekly basis.
I FAmagazine.com
May 2020
Whilst we are all having to deal with the here and now, it is important to look beyond current challenges and plan for the future. In this regard, entries are now open for the PFS Awards 2020/21, which are held in high regard across the profession and allow us to recognise and honour members and Journalists across the personal finance landscape. In November the PFS is planning to present financial planning as you've never seen it before – but will remember for years to come. Our Festival of Financial Planning 2020 will deliver a unique balance of practical, entertaining and inspiring content, featuring influential speakers, thought leaders and multiple streams of content for financial planners. These unprecedented times create the need which is likely to alter the way we do somethings forever. The impact however is also likely to create increased need and demand for financial planning and as a profession I am confident that the majority will come out the other side stronger.
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M&G I NVESTM E NTS
May 2020
INVESTING IN A
HEALTHIER SOCIETY Ben Constable-Maxwell, Head of Sustainable and Impact Investing at M&G Investments, extends his commentary on the importance of investing in companies which deliberatively set out to deliver a positive impact as part of their mission. In this article he looks at how companies can target sustainable returns from addressing the world’s healthcare challenges
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hat many of us today can expect to live longer and healthier lives is largely thanks to medical advances. Some of these innovations have been the product of revolutionary science, while other improvements have been incremental. All of these advances, however, are the product of investment. It often costs companies millions of pounds to develop laboratory research and to manufacture new devices. It also tends to take years to undertake trials and receive approvals – with no guarantees of success, of course. Where companies can successfully combat the world’s major health challenges, I believe long-term investors can be rewarded for their patience, with lasting benefits for society. LIVING LONGER, LIVING BETTER The importance of addressing these challenges is reflected in the UN Sustainable Development Goals, which articulate the world’s most pressing sustainability issues. Specifically, Goal 3 is to ensure healthy lives and promote well-being for all at all ages. The importance societies attach to good health is reflected in the amount spent on it. It is typical for better-off
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countries to spend roughly one-tenth of national income, as measured by gross domestic product (GDP), on healthcare goods and services.
The importance societies attach to good health is reflected in the amount spent on it
Moreover, the trend is upward. The share of the UK’s GDP spent on healthcare rose from 7.4% to 9.6% between 2007 and 2017, according to the OECD. In the United States, the world’s largest healthcare market, it rose from 14.9% to 17.2% of GDP during this period. With societies ageing, putting upward pressure on healthcare costs, companies that can deliver healthcare goods and services at better quality, or better value, should not only enjoy commercial success, but also help extend good health to more people around the world.
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M&G I NVESTM E NTS
May 2020
MEASURING THE HEALTH BENEFITS For investors attracted by the sector’s ability to deliver societal benefits, I believe it is important to gauge the positive impact that a company is having through its activities. This is not always easy. After all, ‘not everything that can be counted counts, and not everything that counts can be counted’, to borrow a well-known phrase. Nonetheless, measurability is one of the central tenets of impact investing. Looking at how a company intends to address a specific healthcare challenge and reach those who are in the greatest need, as well as the tangible steps it is taking to achieve this goal, is a sound place to start. It is also important to consider how replicable its products or services are, and whether they would be provided if it did not exist or was not funded. Crucially, as impact investors, we must also consider the materiality of those products or services – for instance, how does a new drug save lives? Improving lives can have an equally significant impact. ALK-Abelló, for example, is a pharmaceutical company that specialises in developing products for the more than 500 million people worldwide who suffer from allergies. Among its innovations have been immunotherapy tablets against some of the most common respiratory allergies – including grass pollen and house dust mites – that allow allergy patients to self-administer from the comfort of their own home. Innovations like this can positively transform lives, helping realise Goal 3 of the SDGs. PURSUING HEALTHY RETURNS When investing for impact, it is important to analyse companies on their own merits. In every sector there will be leaders and laggards. By providing capital to companies that have a demonstrably positive impact on people’s health, long-term
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By providing capital to companies that have a demonstrably positive impact on people’s health, long-term shareholders can help them develop their businesses, and therefore contribute to longer and healthier lives
shareholders can help them develop their businesses, and therefore contribute to longer and healthier lives. Through the investments we make, I therefore believe we can aim to have a positive societal impact over the longterm, alongside sustainable financial returns. To find out more about impact investing at M&G, visit: www.mang.co.uk/positiveimpact
About Ben Constable-Maxwell Ben is Head of Sustainable and Impact Investing, M&G. He joined M&G in 2003 as an Investment Specialist supporting the Global Equities team. He then moved to the Corporate Finance and Stewardship team in 2013, where he began focusing on corporate governance and ESG at international companies. Ben has been responsible for developing the incorporation of ESG in M&G’s investment processes and sits on M&G’s Responsible Investment Advisory Committee, which oversees Responsible Investment activities at M&G including the firm’s membership of the UNPRI. Ben graduated from the University of Newcastle-upon-Tyne with an Honours Degree in Classics before spending four years in the Equities team at Invesco Perpetual.
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May 2020
M&G I NVESTM E NTS
INVESTING FOR EQUALITY OF
OPPORTUNITIES Extending his commentary on investing in companies which make a positive impact, Ben Constable-Maxwell, Head of Sustainable and Impact Investing at M&G Investments, highlights how those businesses which look to boost equality and learning opportunities can help to empower people and their communities
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ore than two centuries ago, US founding father Benjamin Franklin famously said that “an investment in knowledge pays the best interest”. This may sound like a glib soundbite today, but has merit for investors wishing to contribute to global society in the 21st century. Alongside health, education is a key pillar of human capital. After all, the healthier and more educated we are, the more productive we can be. The opportunities we have to learn effectively play a big role in determining our prospect, and poor access to quality education prevents millions – if not billions – of people from breaking the vicious cycle of poverty. Addressing inequalities like this is at the heart of the UN Sustainable Development Goals (SDGs). These SDGs, which codify the world’s most pressing environmental and social issues, represent a universal call to action. To meet these ambitious goals by 2030, it has been estimated that some US$3.9 trillion a year needs to be spent . Governments alone cannot foot the bill. Investors therefore have a crucial part to play, including in widening access to quality education. While delivery of basic education rightly remains the reserve of the state, by and large, higher education and lifelong learning are often
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The opportunities we have to learn effectively play a big role in determining our prospect, and poor access to quality education prevents millions – if not billions – of people from breaking the vicious cycle of poverty
delivered by the private sector, especially in developing economies where needs are arguably greatest. Where companies can successfully fill the gap, and develop the skills that enable people around the world to thrive, irrespective of their background, I believe they and their investors can have a far-reaching and long-standing impact. REMOVING BARRIERS TO ENTRY Few countries are as renowned for their vast natural resources as Brazil, but its huge human resources are often overlooked. Unequal access to high quality education
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means the human and economic potential of more than 200 million people could be going largely unrealised. According to the 2019 Social Progress Index , which attempts to measure real quality of life independent of economic indicators, Latin America’s largest economy ranks 14th in the world for the quality of its universities. Yet it ranks 136th (out of 149) for how equal access is to quality education. In short, Brazil is home to some world-class public universities, but they are dominated by an affluent elite whose privately educated children are best placed to win the fierce competition for spaces. Aiming to meet the need for affordable and effective private education is Cogna Educação. The company, formerly called Kroton, operates across all educational segments, and has post-secondary education campuses across more than 100 cities in Brazil. It also offers web-based distance learning, opening up access to higher education for students living in rural areas. As well as removing geographical barriers to learning, Cogna reduces financial barriers by providing affordable loans and financing to poorer students. By expanding access to higher education, I believe Cogna clearly – and intentionally – delivers positive social impact aligned with SDG 4: “ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all”. CONTRIBUTING TO LASTING IMPACT Measuring the impact of investments in human capital can be difficult, but it is vital for impact investors to overcome the challenge. Indeed, “measurability” is a key differentiator between impact and other forms of responsible investing. By identifying key impact indicators, we can gauge a company’s progress towards realising an SDG.
I FAmagazine.com
May 2020
As well as quantitative metrics – such as, in the case of an education provider, the number of students enrolled and the proportion using loans – there are indicators of the quality of outcomes – analysis of graduate earnings and employment rates, for instance. Where companies can effectively deliver improved skills and knowledge, and widen access to the opportunities that further learning can open up, they can empower individuals and their communities to thrive. By playing a part in levelling the playing field, I believe investors in these companies can aspire to have a lasting positive impact on global society, while also pursuing sustainable financial returns over the long term. To find out more about impact investing at M&G, visit: www.mang.co.uk/positiveimpact
About Ben Constable-Maxwell Ben is Head of Sustainable and Impact Investing, M&G. He joined M&G in 2003 as an Investment Specialist supporting the Global Equities team. He then moved to the Corporate Finance and Stewardship team in 2013, where he began focusing on corporate governance and ESG at international companies. Ben has been responsible for developing the incorporation of ESG in M&G’s investment processes and sits on M&G’s Responsible Investment Advisory Committee, which oversees Responsible Investment activities at M&G including the firm’s membership of the UNPRI. Ben graduated from the University of Newcastle-upon-Tyne with an Honours Degree in Classics before spending four years in the Equities team at Invesco Perpetual.
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7I M
May 2020
DIVERSIFICATION STILL WORKS
Terence Moll, Head of Investment Strategy at 7IM, explains why it is never too late to diversify
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all it the coronavirus crash. Today’s equity investors will rarely have suffered more volatile and frightening slides in the value of their assets. The spread of COVID-19 across the globe and the subsequent lockdowns imposed to protect people’s health is unprecedented. In many ways it feels like a world war. No wonder that the valuations of most companies have plunged. It’s at times like this that advisers look for safe havens for their clients – highlighting the importance of diversification for portfolios. A diversified investment process shows its value in difficult periods like today, when the impact of the crisis is not merely dictated by national borders or GDP. The fundamental principle of being diversified is to have a spread of assets that act differently to each other. This helps to ensure that an unforeseen event like the coronavirus does not hurt an entire portfolio. Diversification helps to reassure more cautious clients and allows investment managers to remain calm and emotionally unbiased in the face of market setbacks,
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precisely because different assets behave differently – with some designed to perform well during market downturns. Strategically positioning investments across a diverse range of asset classes, currencies, sectors and geographical regions is crucial when diversifying portfolios. It greatly reduces the chance that one event will harm all of your holdings. We constantly run our portfolios through over 20 of the biggest market shocks through modern history (e.g. the 2008 financial crisis), as well as the worst hypothetical scenarios we can imagine. We couldn’t have predicted COVID-19, but we’ve seen the size and direction of such market shocks before and we factor these tail risks into our portfolio process. The big question facing advisers and their clients now is whether it’s too late to diversify. We think the answer is a resounding no, with various trends and opportunities presenting themselves in different regions and asset classes. Investing globally is a key part of the diversification process. Global investing, though, is not always straightforward, and to avoid the pitfalls it’s important to understand the additional risks that come with such an approach. One area that has been hit hard by the coronavirus is emerging markets, with most markets having crashed in the last two months. Fearful investors might be inclined to run for the hills, but we believe emerging markets fulfil a
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vital role in a diversified portfolio, providing exposure to the highest-growth regions of the world. Rather curiously, some ‘global’ equity indices like the MSCI World Index cover only the developed markets. Before investing internationally, investors should look in depth at the markets their products cover, to ensure their exposure is sufficiently diverse. And if possible, they should focus on the economic weight of a country rather than its geographical size.
The big question facing advisers and their clients now is whether it ’s too late to diversify
Emerging markets often only make up a small percentage of equity portfolios, but we think this can be a mistake. After all, a quarter of global equity revenues comes from emerging markets and portfolios need to reflect that in the long term, or risk missing out on the main engines of growth around the world. Likewise, it’s also important to make sure that the USA – which makes up a quarter of the global economy – does not dominate portfolios. For the last few years advisers will have seen US equities soar to ever higher levels, which may have led them to increase clients’ exposure for fear of missing out on returns. But having a clear, diversified allocation framework helps avoid becoming too fixated or dependent on one market, just in case it begins to disappoint. Not even the mighty S&P 500 can outperform forever.
I FAmagazine.com
May 2020
One area that is looking very interesting is corporate bonds, which have taken a hammering recently. The bonds of high quality companies are being sold as if they’re heading for bankruptcy, while lower-quality company bonds are being priced as if the bailiffs are knocking on the door. Our portfolios have strategic allocations to corporate bonds, with globally-diversified holdings in both investment grade and high yield debt. We’ve been steadily building our exposure in both areas. Another part of being diversified is to identify long-running themes. This is as true today as before the crisis, with a focus on real growth stories (and an avoidance of fading industries and trends) contributing to long-term returns. An example of this is healthcare, which provides lots of interesting opportunities for investors. In 30 years’ time, two billion people across the world will be aged 65 and up – and many of them will be spending large amounts on healthcare. Likewise, the middle classes in developing countries will be demanding the best healthcare in the world. We believe that the global demand for healthcare will rise steadily as people become older and richer. Company prices may plunge at times, e.g. due to the vicissitudes of US politics, but we regard such selloffs as buying opportunities. For advisers, ensuring clients have exposure to such longterm trends is vital as a means of generating returns. Ultimately, there is no ‘perfect’ diversified portfolio. We cannot predict what will happen tomorrow, but we can take steps to ensure that portfolios are exposed to various economic drivers and are prepared for a range of outcomes. The role of the investment manager is to stay calm in the face of market setbacks and avoid emotional responses wherever possible, and diversification plays a key part in achieving this.
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May 2020
RICHARD HARVEY
DON’T PANIC MR. MAINWARING
Those famous words uttered by Lance Corporal Jones many years ago have resonated with Richard Harvey as the impact of COVID-19 takes hold of life in Britain
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ike the rest of the population, I’m now washing my hands with OCD frequency and doing as the Government are advising and staying at home. After weeks of slaloming clear of anyone who looks even faintly snuffly, all we can do now is do what we’re told to take practical and sensible steps to protect ourselves against The Bug and to protect our marvellous NHS. But that’s enough about that. I’m adopting a different approach when it comes to financial matters. I’m not sure whether Boris and his scientific team have yet recommended “stick your head in the sand” when monitoring your (rapidly declining) wealth, but it’s the policy I’m following. Since the arrival of The Bug, I have studiously avoided going online to check on my pensions and savings. I know what the picture will be, and it ain’t going to be pretty. As the man said, “there is nothing to fear but fear itself” (although one assumes he wasn’t from national audit firm Crowe and the University of Plymouth which have just issued a report claiming the UK’s pension sector is losing an estimated £6 billion annually through fraud).
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WE’RE ALL DOOMED But as tabloid headlines scream daily variations of Private Frazer’s “We’re All Doomed”, it’s worth pondering what other fears we share outside of coronavirus, and just how logical they are. For instance, ten minutes out of Gatwick on a recent return flight from Tenerife ( oh it does seem like a lifetime ago now), our captain announced that he couldn’t land because of a hole in the runway and would therefore be diverting to Stansted “as we are low on fuel”. Memo to captain: if you don’t want a plane full of screaming passengers, never utter those words again. As it happened, the diversion switched to Heathrow, where, after a half-hour wait while the folk at Gatwick patched up their runway and we breathed a sigh of relief at the welcome sight of a fuel tanker topping up our plane, we took off on the shortest flight of our lives. For Lady H, for whom flying is akin to a lengthy session with a badly-trained dentist, this experience induced a sharp spike in her panic-ometer, although she would later reluctantly confess that her fears were entirely unfounded.
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RICHARD HARVEY
May 2020
Being late for a job interview, cocking up the family holiday arrangements or inadvertently offering your vegan boss a bacon sandwich will all induce queasy waves of anxiety which are acute at the time, but in hindsight – well, hey ho, let’s have another beer.
Those who stay calm and rational will be those who will look back on this crisis in a year or so and realise that even something as devastating as coronavirus can produce some positive results
TRYING TO LOOK ON THE BRIGHT SIDE So I do hope my IFA is identifying the undoubted opportunities which the current crisis is engendering – shares in manufacturers of loo rolls, hand sanitisers and baked beans must have gone through the roof. Supermarkets, too: fairly early in the pandemic panic, the manager of my local Tesco said his store was doing the same amount of business as it normally did in the week before Christmas.
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This is an ill wind. Those who stay calm and rational will be those who will look back on this crisis in a year or so and realise that even something as devastating as coronavirus can produce some positive results. Stay safe – and don’t read coronavirus guff on social media. It’s bad for your health.
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CAREER OPPORTUNITIES Position: Paraplanner Job Ref: 58840 - Gatwick and Job Ref: 59273 – London Salary: £30,000 - £40,000 The Client This is an award winning financial planning and investment company that has an excellent reputation within the industry. Specialisingin proving a wide range of services to private clients, corporations, HNW individuals and financial services professionals across the UK they have been supporting clients for over 30 years.
The Opportunity Due to growth, this company have an exciting opportunity for an experienced Paraplanner to join their teams in both Gatwick and London to become a vital part of the financial planning process by supporting several advisers and their HNW clientele. You will benefit You will benefit from working with a highly experienced team in an environment that provides industry leading training & development as well as exam support towards chartered status.
What’s needed for me to be considered? Previous experience within a Paraplanning position within a regulated environment Hold level 4 Diploma in Financial Planning and working towards Chartered Understanding of the full financial planning & corporate advice process
Position: Experienced Paraplanner Job Ref: 59286 Location: LONDON Salary: £35,000 - £45,000 The Client This is National Wealth Management Practice which provides exceptional training and study support.
The Opportunity They are looking for a technical paraplanner to support the successful Financial Planners of the business. The firm has the flexibility to mould the perfect opportunity around each person’s specific skillset, so the role can be tailored to exactly what you want. You will have the opportunity to work in a supportive team environment where progression is encouraged. You will be responsible for writing high quality suitability reports for high net worth clients and providing a bespoke wealth management service.
What’s needed to be considered? In order to be considered for this unique opportunity, candidates need to have •
Level 4 Diploma qualified or working towards this
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Previous experience within a fast-paced IFA Practice
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High level of analytical capability and good communication skills
Position: Financial Adviser Job Ref: 58490 Location: PRESTON Salary: £40,000-£60,000 The Client This firm of independent wealth & financial planners has an outstanding local reputation that has been built up over years of delivering impeccable levels of service. They are now looking to expand by adding a new member to the financial planning team (ideally Chartered) andare keen for this to be someone with a strong background within planning and solid grasp of face to face advice.
The Opportunity They seek an adviser with a professional and level-headed approach to come in and really put their own spin on a role within a wellestablished, fantastically branded firm. The successful candidate will have a strong level of client-facing experience, strong/proven business figures and a background in giving full holistic planning, with an ambitious and competent mind-set. In an ideal world, the successful candidate would have their own professional introducers/clients to get them started; however this is not a deal-breaker.
What’s needed for me to be considered? • Hold previous experience within an IFA / financial planning practice • Must be qualified to a minimum industry standard of Level 4 Diploma, ideally Chartered or working towards this. • Previous experience dealing with high net worth clients desirable but not essential • A strong understanding of pensions and investment products advantageous
Position: Compliance Professional Job Ref: 58117 Location: HARROGATE Salary: £70,000 This is a national IFA group in Harrogate which provides exemplary wealth advice to their clients.
The Opportunity They are looking for an experienced Compliance Manager to join the compliance team to assist the management of the compliance function. The firm is offering immediate responsibility, where you will have the opportunity to work autonomously whilst also working within an established compliance function. You will be responsible for setting up and monitoring compliance processes alongside undertaking file reviews and T&C processes.
What’s needed for me to be considered? •
Experience in managing compliance within an IFA informing advisers on regulatory change and overseeing compliance processes
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Level 4 qualified minimum
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Confident when communicating with board level directors
Position: Compliance Officer Job Ref: 59290 Location: BIRMINGHAM Salary: £24,000 This is an excellent firm looking for a compliance officer on a 1 year contract, covering maternity in their Birmingham office, start date ASAP. Experience required as follows; • T&C •
file review
• auditing •
risk management/assessment
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FCA reporting
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level 4 diploma in financial planning - desirable
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minimum of 1 year compliance experience in financial services, ideally IFA as Compliance Assistant / Compliance Officer / Compliance Analyst / Compliance Administrator
Position: Paraplanner Job Ref: 59250 Location: NOTTINGHAM Salary: £45,000 The Client This is a fantastic financial services firm which focuses on finding financial solutions for top tier professionals and entrepreneurs exiting private equity backed business.
The Opportunity This is a fantastic opportunity to build on your industry and technical knowledge by working with an established team of paraplanners to provide high quality support to the firm’s IFAs. You will have an experienced team of administrators assisting you and you will be provided with the latest technology to help you within the role.
What’s needed to be considered? • Level 4 Diploma qualified or working towards this is desirable/ or relevant industry experience • Previous experience within a fast-paced IFA practice • High level of analytical capability and good communication skills • Good pensions & investments product knowledge
Position: Financial Adviser Job Ref: 58608 Location: COLCHESTER Salary: £40,000 - £60,000 The Client A financial adviser is sought to join a firm of professional independent financial consultants which provides leading advice to a diverse range of clients, all looking for the same unique experience.
The Opportunity They are looking for a financial adviser to assist a more experienced adviser who will be providing you with existing clients and leads. The firm is looking for the candidate to show an eagerness to progress and build up the existing client bank. As a reputable firm, this business prides itself on the high level of advice it offers. You will be given the opportunity to build a lasting career within a wellrespected practice. In addition to a very competitive salary, they also offer a discretionary bonus.
What’s needed for me to be considered? • Level 4 Diploma qualified in Financial Planning or close to completing this • Experience working within a similar role • Demonstrate extensive advising knowledge
Position: Financial Adviser Job Ref: 59305 Location: SHEFFIELD Salary: £40,000 - £60,000 The Client The opportunity exists for a financial adviser to join a firm of professional independent financial consultants in Sheffield. The firm provides leading advice to a diverse range of clients, all looking for the same unique experience.
The Opportunity The adviser is required to assist a more experienced adviser who will be providing you with an existing client bank and leads. They are looking for the candidate to use their experience to service and develop this client bank. As a reputable firm, this business prides itself on the high level of advice it offers. You will be given the opportunity to build a lasting career within a well-respected practice.
What’s needed for me to be considered? • Level 4 Diploma qualified • Experience working within a similar role • Demonstrate extensive advising knowledge
Position: Compliance Officer Job Ref: 59262 Location: COVENTRY Salary: £40,000 - £50,000 A highly reputable financial services group which prides itself on the personal touch that they provide their clients. The firm provides tailored financial advice for both private and corporate clients. The firm has an excellent staff retention rate and have a comprehensive benefits package to accompany salary.
The Opportunity They seek an experienced Compliance Officer. You will be given the chance to work closely with the firms IFAs as well as overseeing and improving the firm’s approach to compliance. A clear and defined career plan will be put in place that will enable progression within the firm. You will also be offered the chance to study towards gaining further financial services qualifications should you want to.
You will be rewarded with; • 5% employer pension contribution • Study support • 23 days annual leave • free parking • health care/life assurance cover
What’s needed for me to be considered? • working knowledge of COBS, ICOBS and MCOBS. • Existing experience in financial services compliance or risk control • Experience of working with bespoke software packages used for financial planning and support
Dan Gratton - Specialist Financial Planning Recruiter I have been recruiting within the financial planning field for just over 2 years now, largely specialising within the placement and recruitment of financial planners and senior back office roles. Prior to this, I was working in the industry for 5 years, as an Associate Financial Planner, so like to think I am somewhat knowledgeable on both the industry and those in it! A lot of people believe that the job hunt on the build up to Christmas can be quite slow, however we have found quite the opposite, with last December being our busiest month to date. It seems companies are very keen to get their recruitment needs in order, prior to the new year, so there may never be a better time for you to start your search. You will see below that we have a number of opportunities that we are working on at present and many more on our website should you be open to new opportunities. Furthermore, should you just wish for further information on the IFA job market at present, opportunities locally or industry information on qualifications etc, please do not hesitate to be in contact. You can reach me on 0117 922 1771 or feel free to email me at dan.gratton@heatrecruitment.co.uk.
What’s next? If you are interested in any of the above opportunities, please contact us directly. If suitable, one of our specialist consultants will be in contact with you to discuss the opportunity in detail prior to submitting your Curriculum Vitae to the client. During this discussion, we will aim to identify your specific skills and motivations and, where appropriate, can also recommend other relevant opportunities to you that match your requirements.
And finally… 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.
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