The Use of Technology in Financial Planning | IFA 80 | July/Aug 2019

FOR PROFESSIONAL INVESTORS ONLY

Robotics – discover the next frontier of technological achievement and invest in a theme affecting all aspects of everyday life.

Advances in IT are revolutionising robotics and automation technologies, which are expanding beyond the factory floor into our everyday lives.

The new frontier

Pictet-Robotics

Today we stand on the threshold of a new technological revolution: a global transformation spearheaded by robotics and artificial intelligence (A I ).

Robotics, the future of technology

We believe there are investment opportunities in three main areas:

The robotics industry, buoyed by powerful long-term trends such as technological breakthroughs and demographic changes, has already demonstrated significant growth. Because of its ability to increase productivity, reduce costs and help solve the challenges linked to an increasingly elderly population, the robotics sector is set to grow significantly faster than the broader economy over the coming years.

i n dust r i a l au tom at ion

consu mer a n d serv ices a pplicat ions

ena bli ng t ech nol ogi es

This is a fast-growing and global market. Robots are already used extensively in Japanese and European industries, but as they become cheaper, smarter and more energy-efficient, countries such as China and the US will increasingly deploy robots to improve productivity and reduce labour costs.

Robots are fast becoming a part of our day-to-day lives in the home, factories and hospitals. Automated commercial drones are benefiting from an improving regulatory environment.

Innovation is helping robots to carry out complex processes.

Machine vision systems equip robots with the eyes (cameras) and the brains (software and sensors) they need to perceive their environment and become autonomous.

For today’s discerning financial and investment professional

The Use of Technology in Financial Planning Multi-asset investing Janus Henderson

Pictet Asset Management on why robotics is the future of technology July/Aug 2019

ANALYSIS

REVIEWS

NS&I’s new online service for advice firms gets a warm welcome ISSUE 80

COMMENT

INSIGHT

CONTE NTS

July/Aug 2019

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CONTRIBUTORS

Ed's Welcome

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

Editor's Rant - A New Orbit Mike Wilson takes a look at the many market-altering ways that the world has changed since 2000

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Better Business Brett Davidson of FP Advance highlights how you can boost internal communications and create greater engagement with your team

Richard Harvey a distinguished independent PR and media consultant.

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Brian Tora - A sense of security Brian Tora reminds us that despite the huge benefits to the advice profession brought by increased use of technology, matters of security are more important than ever

Neil Martin

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

Are multi-asset funds well positioned for today ’s challenging economic and market conditions? We talk to Paul O’Connor and Dean Cheeseman of Janus Henderson.

Multi-asset investing

24 Brett Davidson FP Advance

The role of the practice manager Tracey Underwood, PACE Solutions.

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The unintended consequence of RDR Verona Kenny, 7IM

Michael Wilson Editor-in-Chief editor ifamagazine.com

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The use of technology in financial planning An introduction to this month’s IFA Magazine special focus

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How to optimise your website from a technology perspective

Sue Whitbread Editor sue.whitbread ifamagazine.com

Faith Liversedge on the technical foundations every adviser website needs.

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Technology in financial advice Zahid Bilgrami, CEO, Defaqto argues that with disruption comes opportunity.

Alex Sullivan Publishing Director alex.sullivan ifamagazine.com

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Are you making the most of technology?

Michelle Hoskin, Standards International.

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How technology has transformed marketing for financial planners

Rachel Bray Head of Design rachel.bray cliftonmedialab.com

Jon Pittham, ClientsFirst.

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NS&I launches new online service for advice firms We talk to NS&I’s Andrew Pike about the new portal and why he believes it will transform the way NS&I works with advice firms

Georgie Davey Junior Designer georgie.davey cliftonmedialab.com

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Taking CPD online Matt Connell, The Chartered Insurance Institute

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Robotics – the future of technology John Gladwyn, Senior Investment Manager, Pictet-Robotics fund

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

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ACQUISITION AND SALES

O F I FA BUSINESSES Retirement?

Time for a change?

There are countless reasons to sell your IFA business, just as there are countless reasons to get hold of one.

W E A R E A SPECIA L I ST F I NANC IAL S A L E S , CO N S U LTA N CY A N D BR O KE R AGE B US I N ES S .

Gunner & Co.’s mission is to work directly with you, whether you are looking to realise the capital in your business, or you are looking for growth through a merger or acquisition.

We consider every business to be unique, and therefore finding the right solution for you starts with a thorough understanding of your business operations and your wish list.

Only from here can we make valuable introductions which align to both party’s needs.

If you would like to discuss options to sell, exit or retire, or acquire IFA businesses, please get in touch for a confidential discussion.

louise.jeffreys@gunnerandco.com

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E D'S WE LCOM E

July/Aug 2019

STORMY WEATHER

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f there has been one story dominating the news headlines of late, it is the fall from grace of so-called “star” fund manager Neil Woodford following the suspension of trading in the flagship Woodford Equity Income fund. Now, before you gasp in exasperation fearing the prospect of yet more coverage about the Woodford situation, I can reassure you in that this welcome page is where our mention of Mr. Woodford starts and ends this month. Thankfully, we must remember that such fund suspensions are rare. However when they do occur they have the power to damage investor sentiment and even to dent confidence in the nature of professional advice.

Fund suspensions also tend to refocus all our minds on some of the more fundamental principles of investment management – notably liquidity and transparency especially when open-ended funds are concerned. Of course, when things are going well such things tend to be overlooked or disregarded. It’s when the weather turns that things change. In Woodford’s case, whilst the market and investors were aware that the fund has had a growing exposure to illiquid holdings, extremely high levels of ongoing withdrawals meant that the more liquid holdings were being sold to meet redemptions. Of course, we will have to wait and see how things work out for the fund and its investors in the longer term. In the meantime, the advice profession will be on the front foot to reassure clients and prospective clients alike that professional advice remains the very best way to minimise risk and to protect their hard-earned capital from painful damage. This is through the tried and tested formula of having a properly diversified investment portfolio.

WHERE NEXT? There are regulatory questions too. No doubt there will be investigations into the relationship between fund managers, platforms and best buy lists as well as regulatory scrutiny, conflicts of interest are all on the agenda as well as is the question of whether Woodford should be continuing to charge management fees. There’s certainly plenty to ponder over the summer months.

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THE BUSINESS OF FINANCIAL PLANNING That’s enough about Woodford from us this month. We turn our attention to more positive matters. Our special focus in this edition of IFA Magazine is on the use of technology in financial planning. We’re grateful to all our experts for their insight and practical tips on how you can harness the power of technology to boost business success.

As well as our tech section, there’s plenty more to get you thinking. Brett Davidson reminds us of need to communicate effectively with your team, whilst Tracey Underwood considers the merits of having a practice manager and 7IM's Verona Kenny discusses the unintended consequences of RDR. THE WORLD OF INVESTMENT A lot has changed since the millennium. Mike Wilson has his analytical hat on and examines the different ways in which the world has changed since 2000 and the impact such change is having on economics and markets. Brian Tora reminds us that despite the huge benefits to advisers brought by increased use of technology, matters of security are more important than ever. We talk to Paul O’Connor and Dean Cheeseman at Janus Henderson about why they believe that this is an ideal time for a multi-asset approach.

Last but not least, John Gladwyn of Pictet Asset Management reflects on the growing importance of Robotics in the world of investment.

We hope you find plenty of interest and to stimulate your thinking as the summer months unfold.

Sue Whitbread Editor IFA Magazine

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July/Aug 2019

E D'S RANT

A NEW

ORBIT Constant change is here to stay, says Michael Wilson. And that’s a good thing. But where did all those black swans come from?

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xcuse me if I seem to be in a bit of a melancholy orbit this month. I’ll snap out of it, honestly I will. But I’ve just been watching Professor Brian Cox explaining on the telly about how many times our supposedly unchanging planetary system has in fact been wracked over the billennia by unlucky collisions, near misses and gravitational upsets from passing lumps of rock that have continually spun the celestial dice on whether earth lived or, like Mars, died?

Not that our planet gives any particular cause for imminent concern in that department, you understand - give or take the odd half-kilometre asteroid escaping from the Kuiper belt now and then. (There’s a 300 metre specimen passing close by in 2029, just so you know.) In practice, right now, we are far more likely to do ourselves in with self-inflicted environmental damage before the space rocks ever get a chance. But at least we can do something about that, of which more anon.

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Closer to home, it isn’t just wandering planetary lumps that can change the gravitational pulls that determine our collective experience. Incoming geopolitical realities like the emergent China, the influential euro, the increasingly selffocused United States and - of course - Brexit itself, have all been moving our financial markets in ways that reflect far bigger economic realities. Or at least, they jolly well ought to. So how well are we keeping up with the changed global environment, and do we need to change our views, or our asset allocations?

Professor Cox does a pretty good job on putting us into our cosmic place, of course, but at the end of the day, he says, the only cosmic constant is mathematics. Which is a bit of an embarrassment really, because we do seem to be hanging onto some 30 year old ideas that don’t always stand up to close inspection.

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INTERESTING TIMES Now, don’t get me wrong. In the 36 years since I first landed at the Financial Times, I’ve never known a time when there was so much interesting stuff going on. As a self-confessed political nut, I am permanently obsessed with the links between politics and economics, economics and financial markets, and financial markets and prosperity. And there are a few very big questions that I can’t answer.

How is it, for example, that America’s terrifying plunge into fiscal debt hasn’t killed off the US economy’s growth but is in fact creating genuine jobs? How did ten years of quantitative easing (also known as borrowing from your grandchildren) not destroy the currencies of those countries (UK, US, eurozone, Japan) who issued it?

Why do the prices of commodities, including oil or iron or copper, continue to rollercoaster as if we didn’t already know that supply is limited and that we’ll be needing them all for a long time yet?

How are the markets tolerating Shiller p/e ratios of 30 and above, which are broadly the same as they were in 1929?

What of the impending top-of-cycle for corporate profits?

Have we properly factored in the emergence of China, or alternative energy?

Where, in short, are the fundamentals in all this? And where, in particular, are the mathematics?

THOSE BLACK SWANS AGAIN Like everybody else, I am indebted to the Lebanese/ American essayist and risk specialist Naseem Nicholas Taleb, for his ground-breaking theory that so-called “black

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swan events” can change the market in random ways and with surprising speed – and the market’s logic with it. The question, in 2019, is whether we are taking enough notice of the entire squadrons of black swans that seem to be in the air?

Taleb had the good fortune (or foresight) to publish his book in 2007, on the very eve of the global subprime bond and banking crisis that would undermine everyone’s confidence in the perceived certainty of the marketplace.

Taleb’s title refers to the wisdom of the ancients that there was no such thing as a black swan – and that, if such a bird were ever to be discovered, the entire logic of any system that underlay that certainty would be subject to re-examination.

How are the markets tolerating Shiller p/e ratios of 30 and above, which are broadly the same as they were in 1929?

On the face of it, then, Taleb’s theory seemed to fit the mood at the close of Alan Greenspan’s nineteen-year splurge of easy-money, feelgood, liberal and mainly Clintonian expansion in the western world. As the easy assumptions about responsible central banking and

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self-regulating markets fell into doubt, and as banks duly collapsed or had to be rescued, the equity markets took the brunt and the world turned to fixed interest. Which was logical enough, in its way. Once a black swan has landed, you need to reassess things.

Except that America’s bond markets remained super-strong for long after equities had powered their way back to full strength. It indicated (well, to me anyway) that there was a substantial weight of risk-averse money waiting out there for the US market, even though the risk-takers also seemed to be taking their chances with considerable success. Where was it coming from? Abroad, it seemed, and from the emerging markets in particular.

And the thing is, in 2019 it’s still that way. Ken Fisher, the US perma-bull investor, has been telling us British since the dawn of time that neither foolish governments nor major scandals nor profit downturns will dent the eternal natural superiority of the United States. We worry too much, says Mr Fisher. And darn it, he has an annoying habit of being right.

FISCAL DOGS THAT STILL AREN’T BARKING But back to the irrationality of the current situation. China’s Shanghai equity scene has been suffering especially badly from America’s bull market since the late noughties – which has often seemed odd, given that its economy has been powering ahead by 8-10% a year for most of that time.

Whereas Western Europe’s markets barely held their own, while South America’s suddenly lost much of their allure.

There was only one explanation that seemed to fit the bill – namely, that America’s quantitative easing programme

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(which started in 2008) was somehow hoovering the liquidity out of other large markets. Wasn’t that rather odd, given that the US was plunging into debt at such a speed?

Well, possibly. You could, of course, protest that China was indebting itself even faster than America, and with rather fewer controls. But against that, at normal times investors are prepared to allow more latitude for large, fast-growing states like India or China with vast untapped consumer potential. And the thing is, this time they weren’t doing so.

The question, in 2019, is whether we are taking enough notice of the entire squadrons of black swans that seem to be in the air?

In the present day, as Donald Trump’s United States barks and threatens its way to international trade dominance, the feeling seems to be that the new global reality might be here to last. As we approach the roaring twenty-twenties, it does sometimes seem as though political sentiment has indeed swung back toward the US in a way that negates anything we might have believed about the traditional relationship between economies and financial markets. But is that strictly true? Let’s examine the evidence.

If we look at China, we see the beginning of the end for the

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public infrastructure boom and a growing concentration on the domestic consumer, which is what you might call the second “maturing” phase of industrialisation. So far, so promising.

At the same time, we are also about to see China flexing its rare earth muscles – possibly the country’s best defence against overweening trade pressure from Washington.

(Rare earths, needed for all kinds of high-tech gizmos, are found all over the world, but only China is currently able to extract them cost-effectively.)

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off, no matter what anybody says. So the dollar juggernaut rolls on. There are no black swans to be seen there, it seems.

The eurozone, of course, has better reasons for defying the usual wisdom about how every tide will have to turn eventually. Its woeful economic performance is barely in positive figures; its political system is in semi-permanent disarray; its exporters are seriously worried about Trump’s trade threats; and now the prospect of an imminent British exit, perhaps without a deal, is casting yet another pall over the mood.

THE PERPETUAL LURE OF THE SAFETY PLAY And yet the markets still don’t fancy China: my Fidelity China Special Situations IT shares have lost 15% in 17 months. Is it that investors are worried about nonperforming bank loans, which are still kept too obscured for comfort? Is it that they’re mystified by the central bank’s rumblings about a looser monetary policy? Or is it that they’re frightened by the uncertainty from Trump’s aggressive trade posturing and are flocking to shelter behind the bully in the playground?

We don’t know. What we do know is that the old “refuge currency of last resort” has been funnelling cash away to the US in recent years, and the fact that China is now holding $1.125 trillion of dollar paper – an amount that ought to give Beijing some serious leverage! - doesn’t seem to be carrying much weight at all.

They tell me that China is building its forex reserves ($3.3 trillion)so as to drive down the value of the renminbi yuan and keep the country’s exports cheap. Which would seem to suggest that Beijing wouldn’t be any hurry to sell them

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As we approach the roaring twentytwenties, it does sometimes seem as though political sentiment has indeed swung back toward the US in a way that negates anything we might have believed about the traditional relationship between economies and financial markets

And yet there are other global trends which are, on the whole, entirely positive. The question is, are our asset allocations taking account of them yet? No, I don’t know the answer either – I’m just posing the question.

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AGEING POPULATIONS One thing we can say for sure is that demography is now tilting the global balance of equity ownership patterns, probably for ever. As the citizens of the world are encouraged to monetise their own futures by replacing their employers’ funds with their own retirement portfolios (in which they carry all the risk), the demand for safer options, for high yielding shares and for low-maintenance funds such as oeics/ucits (especially passives) has grown.

That seems straightforward enough, of course. But what we forget at our peril is that the sheer numbers of elderly are set to grow strongly over the coming decades, as baby boomers retire and younger workers – who are supposed to support them – fail to supplant them because not enough of them have ever been born.

shortfall of £334 trillion by 2050 unless its politicians pulled their pencils out pretty sharply. Using calculations based on the idea that a retired person would need 70% of what they’d earned during their working life, the WEF forecast that the UK’s pensioner deficit would soar from £6.2 trillion to more than £25 trillion by 2050.

You can look at this problem any way you like, but over the long term it’s certain to drive people into buying low-risk, low-maintenance products that don’t do fancy things with aggressive growth strategies. But what will those be?

Good question. Any investor, or pension fund manager, who sought sanctuary in bonds at today’s wafer-thin yields – never mind those of the last ten years – may well find that a future capital loss makes a monkey out of whoever told them it was a safety strategy. So have we got the risk balances right? I wonder.

DIVERSIFICATION

The growing use of derivatives is another calming aspect of the international investment scene which we ignore at our peril

Only two years ago, the World Economic Forum produced a report suggesting that the OECD developed-world countries would find themselves carrying a pensions

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It’s not all bad news for the equity strategists, of course, because today’s globally interlinked markets are big enough and liquid enough to take a lot more knocks than they used to. Just as British investors are able to buy US or Japanese or Indian shares with ease, so foreigners are more interested in buying into the UK. Even if we exclude foreign-domiciled listed companies in London and confine ourselves to UK-domiciled ones, we find that a majority of their market capitalisation is foreignowned. The precise figures are hard to pin down because of varied ownership structures, but an Office for National Statistics survey in 2016 put the figure at 53.9%. (Up from

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25% in 1997, although barely inching up from 53.3% in 2012.) And in case you’re wondering, the proportion of equity held directly by private citizens had fallen to 12.3%, compared with 28.2% in 1981.

That’s less of a worry than it sounds if we accept that funds of one sort or another have taken up the slack. (Unit trusts owned 9.5% in 2016.) So the news that UK pension funds own barely 3% of UK equities is just a tad misleading. A better question would be whether UK investors are buying enough foreign equity exposure – given that pre-Brexit London accounts for much less than a tenth of world market capitalisation?

The growing use of derivatives is another calming aspect of the international investment scene which we ignore at our peril. Although nobody could (or should) suppose that a buoyancy vest of currency futures, warrants or whatever would provide complete protection from the likes of the 1987 crash, they do have an important role to play as shock absorbers. All of which adds a little more certainty to the situation which is especially welcome as the US president cranks up the campaign for his next four years in office.

CLEAN LIVING We spoke a few minutes ago about the strong (and very welcome) growth in pension funds, which are possibly the single most important driver behind global equity prices at the moment. And which may almost entirely account for the otherwise hard-to-justify strength of US equities in particular during these fitful years of uncertainty.

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children. Increasingly, too, ethically responsible funds are becoming active in holding company boards to account for their actions.

As indeed they must. According to Hargreaves Lansdown, which logged a trebling of UK ethical fund assets between 2008 and 2018, even the very largest UK funds are being pressed by their investors to keep company directors on their toes. Ireland’s sovereign wealth fund sold all of its fossil fuels last year, and every Boeing crisis or every VW dieselgate just adds to the pressure.

That’s not to say that every fund has the same objectives as its peers, however. Acceptance is now growing for UStype “socially responsible” practices - as distinct from the traditional “resist” principles favoured especially by the young in Europe. So investors are increasingly willing to accept clean-living bankers, responsible mining companies, well-intentioned GM food developers or even benevolent warplane manufacturers that wouldn’t have got a look-in five years ago.

BOLDLY GOING Where will it all go? I’m not sure. What I do know is that tomorrow’s investors are not fools. They are facing challenges that we boomers never had to face (although we had others), and they have better tools at their disposal than we ever did. But the political pressures of the last few years have altered the gravitational field, and with it the risk mathematics. Perhaps that’s a necessary thing, perhaps not.

But a better question would be to ask what kinds of equities these funds prefer? Lest we forget, the worldwide trend toward ethically and socially sustainable products is becoming increasingly pronounced in the retirement planning sector as, indeed, in the field of investing for

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YOU’VE GOT TO

TELL YOUR TEAM Great businesses know that having an engaged team at their core is a key part of achieving their goals. They also know that the best way to create a truly engaged team is to communicate relentlessly with them about what’s important. Brett Davidson of FP Advance has sound advice on how you can integrate more effective internal communications to boost the success of your team and your business

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lmost every financial planning firm I know could be a little better at this type of communication.

At FP Advance we recommend a quarterly State of the Nation update, held with everyone in your organisation. Typically that will be a meeting of a couple of hours covering a range of areas.

Here’s what a State of the Nation agenda might cover every quarter: CORE VALUES Pick one or two of your core values from your business plan, and tell a story or two about where you’ve noticed these values being lived by the team and the company.

For example, in one firm I know, a core value is generosity.

Perhaps you’ve noticed one team member helping a lessexperienced team member. That would fall nicely under the generosity value.

By telling these stories about how values were lived up to, you reinforce those values. This helps your team to see and understand why these beliefs are the heart and soul of how the business operates.

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BUSINESS PLAN UPDATE Explain to your team the goals and priorities from your business plan. Then let them know how you are progressing against those goals.

That might be your ten-year big, hairy, audacious goal (BHAG), your three-year goals, and/or your one-year plans.

Giving people updates on all of these lets them see how each one fits into the next. If we hit this year’s goals, it gets us well on the way to our three-year goals, which lay strong foundations for hitting our ten-year BHAG.

If a client is in tears at discovering they can afford to retire and leave a job they hate, or if they ’re excited about taking the trip of a lifetime, the rest of the team need to know this information

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Importantly, it also keeps these goals firmly in your mind.

This keeps you and the leadership team accountable for making progress and not getting sidetracked or distracted.

What were the latest wins for the business in the previous quarter?

Share these with the team and let them see the progress that you’re making. Creating this list every quarter is a great reminder for you too.

TEAM BUSINESS DASHBOARD I’d also be creating a team business dashboard that communicates a range of business metrics, at every quarterly State of the Nation meeting. By going over some key information regularly, you allow the team to get a sense of what makes the business tick and what the priorities are.

Clearly what you choose to communicate is up to you, but here are a few metrics I think you could consider sharing with your team: • Revenue for the quarter • Win/loss ratio on new clients (and why you lost with some of the new clients)

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CLIENT STORIES I highly recommend sharing some recent client stories with your team too. It’s especially important for the team members who are not in the room when recommendations are made to clients. They hear about the client reactions and it brings home what it is that you really do.

If a client is in tears at discovering they can afford to retire and leave a job they hate, or if they’re excited about taking the trip of a lifetime, the rest of the team need to know this information. More importantly, you can explain why clients feel these powerful reactions to a ‘boring old financial plan’.

If you can go one step further, and explain the role that each team member has played in delivering your amazing advice, that’s even better.

Remember, you win and lose as a team.

TEAM GOOD NEWS It’s also great to share some good news of a personal or professional nature from some of your team members (with their permission, of course).

• Revenue per planner and revenue per staff (and why improving productivity is a constant theme in the business)

Maybe someone has passed an exam, or gained a new qualification. Perhaps they’ve had a new addition to their family, got married, or taken an awesome trip abroad. Or they’ve raised money for a charity that’s close to their heart.

• Average client size (using assets under management or annual fees, whichever feels right for you)

Anything that lets people get to know a little more about each other is great for bringing your team together.

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QUARTERLY LEARNING As part of your quarterly review of your business plan I recommend asking yourself two questions: 1. What did we learn this quarter?

2. What could we double down on?

The first question helps you and your leadership team to reflect on what you learned, and often leads to a discussion about your observations. There are always new things to learn.

Remember the old advertising rule of thumb: people need to hear a message nine times before they even start to absorb it

The second question helps you to reflect on what’s working and ask yourself if you could be doubling down on what’s working. As opposed to dreaming up new projects that seem like a good idea, but are often a distraction.

Once you’ve done that review at leadership level, sharing the learning with the team is a great idea. You might also pose these two questions to the broader team at every State

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of the Nation meeting too. This gives them a chance to consider what they’ve learned, and what’s working at their level in the business.

TEAM QUESTION TIME Obviously I would encourage team members to ask questions any time they like during the quarterly State of the Nation meeting. However, if they’ve been listening to the updates you or your manager have been providing, then now is the time to open the meeting up to some questions.

In some firms there’s very little coming from the floor at this part of the meeting, and I know business owners get frustrated by this. However, this is your issue to work on, not your teams.

A lack of questions could be nothing more sinister than you provide great updates. But it could indicate people are a little nervous to speak up, or are just not that engaged with what the business is doing; it’s just a job.

The best solution to this is to hold your quarterly updates consistently. Your objectives are to communicate, communicate, and continue communicating. In this way you educate, inform, encourage and mentor the team to engage with what you are doing. That might take some time but by keeping it up you’ll get there.

Remember the old advertising rule of thumb: people need to hear a message nine times before they even start to absorb it. If you meet quarterly, that means it might

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THE RESULTS By letting your team know the score in your business on a regular and consistent basis, you will create a more engaged team. Over time they’ll have more context to help them understand your business, its goals, and the important role it performs in your local community. It will also help your team understand why the owners make the decisions they make for the business.

That’s got to be good for everyone.

So get communicating with your team.

Let me know how you go.

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

He is recognised as one of the leading consultants to financial advisers in the UK. You can follow Brett online and via social media: You can follow Brett online and via social media: Twitter: @brettdavidson Facebook: www.facebook.com/FPAdvanceLtd LinkedIn: www.linkedin.com/in/davidsonbrett Website: www.fpadvance.com

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Risk Warning and Disclaimer

Your capital is at risk when investing in unlisted bonds and Bond repayments are not guaranteed under the Financial Services Compensation Scheme. Basset & Gold is a trading name of B&G Finance Ltd and Basset & Gold Plc., which are both companies in the Basset & Gold Group. Promotion of the bonds and arranging investment is through B&G Finance Ltd. and the bonds are issued

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July/Aug 2019

BRIAN TORA

A SENSE OF

SECURITY There is little doubt that the world of financial planning and advice has becoming increasingly driven by technological advance. However, despite all the benefits this brings, Brian Tora reminds us of some of the deeper concerns around making sure that efficient and effective security is always at the forefront of decisions and processes

In May I was privileged to be invited to host the JM Finn Annual Investment Conference in London. Held in the remarkably well equipped (for conference purposes, even if the medical equipment on show was somewhat dated) Royal College of Physicians, the theme on this occasion was Security – not, you might think, directly allied to investment, though pertinent to us all.

We are, in the personal investment world, at the fore front of potential victims of financial cyber crime

In fact it had more relevance to the business of investment management than you might think. Aside from companies engaged in security (not that any were mentioned at the conference), how we as investment managers and portfolio constructors engage with our clients demands a high level

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of secure communication and for safeguards to be in place to ensure our clients’ investments and their personal data cannot be accessed or compromised in any way.

The conference kicked off with Frank Gardner, the BBC security correspondent, who is confined to a wheelchair following an ambush in Riyadh some 15 years ago when his camera-man colleague was killed. His view was that of the wider observer of global terrorism, but his message was surprisingly upbeat. It seems we are getting better at spotting where the real risks lie, so being caught in a terrorist atrocity is perhaps less likely these days.

This rather more optimistic approach was echoed by the retired senior police officer whose session followed.

A former member of the counter terrorism branch of Scotland Yard, he had been an adviser to COBRA – the Cabinet committee that seeks to direct the governments approach to threats to national security. He was honest enough to point to the mistakes that had been made in the past, but again stated that we had learned from these and were in a better informed position today to deal with threats.

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BRIAN TORA

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CYBER CRIME ALERT

TIME FOR REFLECTION

And these threats could well manifest themselves in terms of cyber crime. Now this is where the conference became really interesting. We are, in the personal investment world, at the fore front of potential victims of financial cyber crime. Our clients will constantly be harassed by emails and unsolicited telephone calls urging them to invest in something apparently risk free or to connect to a service that will bring them benefits.

This conference gave me the opportunity to reflect on what I had written a quarter of a century ago on the topic of how technology was revolutionising the investment world. I had been proud at the time of recognising the speed at which technology would change how we operated, but I had failed to predict just how swift those changes would take place. A final chapter that sought to set out what investment might look like half a century hence made several assumptions that have already come to pass. And I failed to spot quite what an issue cyber crime might become.

And it doesn’t stop there. Hackers will be seeking to invade our systems as providers of investment services in order to gain access to our clients or divert funds to their benefit.

We need to ensure that our own security is above reproach and that our clients’ data is properly protected. Believe me, sufficient evidence was shared to demonstrate how sophisticated these operators on the dark side of the web could be. Scary? You bet.

Amongst the areas that certainly had me thinking was the growth of smart phone technology as a means of keeping oneself abreast of all manner of daily tasks. Who doesn’t keep the wifi option open on their phone these days? Yet in so doing you are making yourself vulnerable to undesirable garnering of personal information. I’m sure we are all only too aware of Google’s propensity to track our every move.

But criminals are just as capable of using this technology to their advantage and can discover more about us by intercepting our phones than we might realise.

WHAT ABOUT INVESTMENT? Is there an investment message in all this? Aside from trying to identify those companies that might prosper by creating the ever-more demanding security systems we will require, it is hard to see that cyber crime is going to change the way in which we invest money for our clients. It may well change how we engage with them, though. Technology has already altered the investment business out of all recognition. Change is likely to be an accelerating aspect of our daily lives.

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Who doesn’t keep the wifi option open on their phone these days?

Yet in so doing you are making yourself vulnerable to undesirable garnering of personal information

Five years after the publication of my book, investing in technology took a prominent role in our world. Businesses were launched which were little more than a dream in the head of some Silicon Valley-based rocket scientist, but such was the investing public’s belief that true riches lay ahead, financing these operations became easy. It all ended in tears, of course, but the groundwork for businesses that have come to dominate our lives was laid. The likes of Google, Amazon and Apple are amongst the most powerful corporations in the world. Technology is a sector you ignore at your peril. But don’t ignore security in the tech sector either.

Brian Tora is a consultant to investment managers, JM Finn.

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TAKE THE

WEATHER WITH YOU

Multi-asset funds are often portrayed as being flexible enough to adapt to changing economic climates and market conditions.

Sue Whitbread talks to Paul O’Connor and Dean Cheeseman of Janus Henderson’s UK-based multi-asset team, about why they believe that an efficient and robust multi-asset approach is ideally positioned for today’s challenging economic, political and market environment

IFAM: What’s your outlook for a multi asset approach in 2019 and beyond?

JH: We believe that we are moving into an era in which active management becomes more important. It’s an environment in which the multi-asset approach in particular will have a major part to play in providing effective solutions for advisers and their clients. The reason for saying this is that we are now in the late stages of a long-running bull market in most asset classes and late into the period of economic expansion. These conditions mean a much more challenging environment for investors with lower anticipated returns than those we’ve seen in the last decade and for volatility to be higher.

A passive approach works well in a strong phase of a bull market and in a buy and hold environment. It’s different now as conditions are much more choppy. In these circumstances multi-asset has a big role to play.

Most importantly, it gives clients genuine diversification,

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providing a smoother ride during such times. It gives access to active asset allocation too, with an opportunity to rotate within different sectors, as well as giving us lots of flexibility overall as managers; a significant strength in this environment.

We’re well positioned to take advantage of this flexibility too; for example, we could hold a significant amount of exposure to emerging markets at one stage or we could also own zero.

IFAM: Can you give us some detail about your investment approach to multi-asset?

How does the team approach work?

JH: There are eleven members of our UK team and we bring three areas of specialisation to all the funds we manage. Each person has to be a specialist in one of those areas which are:

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1. Asset allocation: some of us will look at portfolio construction. This includes things like the equity/ bond breakdown as well as more dynamic side of asset allocation such as when to adjust hedging, how do we react to news items like Brexit etc.

2. Manager selection. The role here is to identify the most efficient way to implement our asset allocation ideas and also about extending our opportunity set. It’s about bringing different ideas to the attention of the team. We use the full range of instrument types in all of our multi-manager and multi-asset funds. So, we’ll use Janus Henderson funds, external funds, passives, ETFs, and directly in individual shares too. Sometimes there’s an instrument rotation side of this too – in situations where we might want to stay in European equities but rotate from one manager to another.

3. Alternatives. This aspect really differentiates us from our peers. We have three members of the team focused on this area, including James de Bunsen. They run some funds which are 100% invested in alternatives but for our Core funds and more traditional multi asset funds, they will have an exposure to alternatives which will be managed by our three alternatives experts. They’ll draw from a wide range of diversifying assets such as infrastructure, renewables, private equity, solar, hedge funds, commodities, commercial property etc.

For each fund there is input from each of these three teams.

It ensures that the ideas are not only well researched but that a consensus approach brings much greater depth and strength to our management process.

IFAM: What’s your investment process for managing the funds and determining your asset allocation strategy? What do you invest in and why?

JH: We’re genuinely top down when it comes to our investment process. This is in as far as we’re trying to understand the drivers in the market and where we are

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in the economic cycle at any particular moment. Our decisions will all depend on the environment. We are not in typical times; the focus is on political noise, rather than traditional market fundamentals; however, there are prevailing investment styles which tend to outperform depending on where you are in the cycle. So in a recovery phase for example, you’d want to be more cyclicallyorientated, while in a slow-down phase more defensive/ quality styles of underlying investment should prevail. It’s a matter of identifying where we are in the cycle and then implementing it through the asset allocation strategy and then through instrument selection etc.

As we discussed earlier, we invest directly as well as into funds – which gives us another dimension. If you look at the funds we run together as a team, we cover all asset classes, all regions and all types of instruments too. If we take fixed interest as an example here, we cover the full range from: Government bonds, index-linked bonds, investment grade, high yield, emerging market debt, structured credit and even subsets within that such as duration variation. It gives us huge scope to position the funds appropriately in line with market conditions.

IFAM: How do you maximise the opportunities for returns whilst minimising the overall risks and volatility?

JH: When it comes to managing risk, we would argue that portfolio construction is the first line of defence. It is one of the great strengths of having a multi asset approach that, as managers, we can access such great diversification. It’s often said that “diversification is the only free lunch in finance” and this is a principle we certainly utilise. By being properly diversified, we can help clients manage and deal with periods of volatility and help them to stay invested.

The second element is the more dynamic side of asset allocation, which is managing the exposure to the fund in the light of changes in the macro-economic environment and market conditions. To do that we have a lot of different frameworks that we use to guide our shorter term decision making. We will look at factors like macro momentum, how growth and inflation are evolving, we’ll look at government policy – both monetary and fiscal and now of

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course we have look at trade policy as well, with particular emphasis on the China-US negotiations.

We’ll also look at investor sentiment and positioning as well as things like politics. This has become a very important consideration of late, most obviously with Brexit but also on a number of other important fronts around the world.

Thirdly, instrument selection has a big part to play here.

Asset allocation is a major part of managing risk and helping clients to optimise the risk/return trade-offs but instrument selection enhances that as well by allowing for broader opportunities and diversification.

CHART 1 - S&P 500 CYCLICALLY ADJUSTED P/E VS 10 YEAR FORWARD RETURNS Source: Bloomberg, as at May 2019. Data starts in 1969.

Relative expensiveness to own histor y

year yield, relative to its own history, over the same time period it’s about 80th percentile today in terms of yield relative to its long-term history.

This makes us ask the question when were equities this expensive before? The answer is back in the days of the tech bubble in 1999/2000, which is when we were hitting the 100 percentile of expensiveness relative to its history.

The problem today is that when we compare to that period, fixed interest is not going to offer the cushion it did then.

In that period, whilst equities were really expensive bonds were fair value at 40th or 50th percentile. Because of quantitative easing (QE), these two primary asset classes have been bid up. Therefore when we’re talking about diversification, it is in the area of sub-asset classes where stock pickers can find opportunities away from the traditional indices. This is all about adding in genuine diversifiers.

We should also talk a bit more about correlation here as it’s so important. If we look across the portfolio we can see how equities are correlated to each other and the same within fixed interest. We therefore have to consider how diversification, portfolio construction and risk management interact meaning that we have to try and find areas to invest which are not all pointing in the same direction.

CHART 2: S&P 500 CYCLICALLY ADJUSTED P/E VS 10-YEAR FORWARD RETURNS

Bloomberg, IMF Forecasts and Citi. All investments involve risk and may lose value. The value of your investment can go down depending upon market conditions. Past performance is not a guide to future performance

It would be good to lift the lid on this area a little bit more.

In chart 1, we can see how expensive the world is at the minute, and this gives us a very important context for the benefits of diversification. The chart shows the P/E ratio on the Standard and Poor’s 500 index dating right back to 1969 and ranks it in percentile terms relative to its own history. So today, the S&P P/E is about 90th percentile relative to its own history over the period since 1969. That’s quite expensive. If we then consider the US Treasury ten

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There’s a lot of history behind the 60/40 portfolio but we would argue that this has been technically challenged in the short term as a function of QE. The flip side on this is that valuation tells you absolutely nothing in short term, but it

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tells you everything you need to know in the long term as to what is your expected return. It can stay expensive for a long period of time so it’s not so simple as just going to cash or alternatives. As fund managers, we still need to have representation across the asset classes but to do so whilst being mindful of what the long term expected returns are given our starting valuations [see chart 2 above].

IFAM: Where do you currently see the best growth opportunities as well as challenges to performance?

JH: We can still see good opportunities to make money for our investors despite all the uncertainty. Perhaps we should consider the bigger picture first. We’re in the late stages of a bull market for all assets and late in the period of economic expansion. We think it’s appropriate to expect fairly modest returns from here across most asset classes and also to expect more of the recurrence of the sort of volatility we’ve seen over the last 18 months or so.

That being said, we still think it’s still too early just to shift into a low risk strategy such as holding larger exposure to cash/government bonds. We don’t believe that we’re heading into recession as yet and added to that these defensive assets are simply not priced attractively.

When it comes to managing risk, we would argue that portfolio construction is the first line of defence

Equally, we think that it’s too late in the cycle to be heavily exposed to the riskier ends of the market. For example, we see these areas as being more vulnerable as growth begins to slow. As and when this happens, you begin to see some of the structural weaknesses in some sectors being exposed.

Our core strategy from here is to focus on what we’d call mid-risk assets – such as corporate bonds. Here we’re

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looking across the range at investment grade and high yield bonds, emerging market debt, the quality end of the equity spectrum plus a wide range of alternatives too – such as infrastructure and renewables and other diversifiers that have low correlations to traditional assets.

Overall, our portfolios are built around the expectation that we’re moving into an era of sustained low growth and low inflation and an environment, in which interest rates will at levels that seem unusually low compared to recent decades.

Of course, volatility can at times be a source of discomfort however it can also be an opportunity to rotate some assets and to add some value from a more active asset allocation style. We’re always alert to such opportunities.

IFAM: How do you measure success? Is it just about total return and performance?

JH: We think that there’s more to success these days than just about the overall investment performance. It’s a competitive space, and yes of course, performance matters but risk matters too. Performance is still front and centre but increasingly it’s broader than this. It’s more about what solution we can provide and whether we can tailor it to the way the adviser’s practice works. As an example, a number of the solutions which we manage for advisers have an income requirement. Can we therefore look to continue to deliver a sustainable and natural income from the portfolio without eroding capital? This is a really attractive approach in a low return, late-cycle world with increased volatility as we benefit from the more defensive characteristics coming out of the more solid income-generating stocks.

Another important area to consider is whether the client holds particular investment beliefs around environmental, social and governance (ESG) factors. If so, to what degree can we give that client confidence in how we integrate ESG into our considerations when managing the portfolios? We challenge external managers very heavily when we meet them, on what ESG means to them and how it affects them.

This reflects on how it goes through our ESG screening process. Of course, it’s not necessarily a key objective for every client but risk management is. So for every client we use ESG screening primarily as an additional risk tool, away

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from non-traditional financial metrics. Are we therefore getting better information on potential risks – reputational or otherwise – in a manager’s portfolio, and how do we challenge on that and engage with it. It’s all about trying to work in partnership with advisers and how they structure their businesses. Obviously risk and return is paramount but we’re going beyond that and aiming to provide a more holistic solution.

IFAM: Why should Janus Henderson be on the radar for advisers’ looking for appropriate multi-asset strategies for their clients?

JH: We have a well-resourced team with a broad range of skills, a rigorous approach to managing money and a strong track record. We generate primary, in-depth research and work from it. We take much pride and effort to determine where we are in the cycle and then consider the investment opportunities which this affords us.

We’re in late cycle slowdown now and so that period of high returns fuelled by QE has gone. Partly as QE has gone and because we’re faced with so much political uncertainty, we believe that with lower expected returns and increased likelihood of volatility, this is the time for active management to outperform.

CHART 3 – ACTIVE MANAGERS ADD VALUE WHEN MARKET RETURNS ARE LOWER

Source: Morningstar Direct. Monthly data Januar y 1993 to Januar y 2019. US Large Cap funds versus S&P 500, includes closed or merged funds. Performance net of fees, since 1993.

Past performance is not a guide to future performance

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If we look at chart 3, interestingly this shows us the market environments when active and passive approaches respectively outperform. It shows that active managers’ performance will lag during periods of elevated equity market returns for many reasons: they hold more cash, they don’t tend to chase the high momentum stocks.

Conversely, the chart shows us that in weak markets, active management – and that’s just the average active manager - outperforms. We think that we’re in the middle area which has a slight positive tilt towards active. If on top of that we can bring in our manager research background of identifying styles and those characteristics which we think are appropriate, then it gives us a sound basis for the portfolios. As an example, in our funds which have core income strategies, we’re looking for quality management like that behind the Investec UK Equity Income fund – who are looking at the subset between dividend yield – a value metric – but also a subset with quality. They’re focused on seeking out those more dependable, cash generative businesses which are also returning cash to shareholders.

At Janus Henderson, our team manages a range of funds in the multi asset space, all with a variety of investment objectives. We launched our Core Multi Asset Income range five years ago, strategies which are aligned to the Dynamic Planner risk bands of 3-6. The yield on these funds varies too as a function of the equity allocation.

Everything on the desk however is run with the same investment ideology –a top down approach – but with differences by objective which accounts for the variance in the instrument selection, for example, in the more cost sensitive funds aimed at directly at consumers there’s even greater use of low-cost passive and smart beta.

We said it earlier, but it’s all about that free lunch principle.

The only free lunch you get – especially at this point in the cycle – is an increasing focus on being genuinely diversified, on bringing in alternatives and those assets with a lower correlation. It’s also about having the resources to identify them and having the breadth in mandates which we have, in order that we can implement those ideas effectively for our investors.

Even though we say it ourselves, we have got a great team here. Together we have a strong track record but more

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than that our team has been managing money since before the financial crisis. In that respect, it’s a crisis-tested team – which we believe is important experience. It’s a useful environment in which to evaluate the team and how well we are performing. We’re well-resourced, so clients can access strategies which have the full team of eleven of us working on it in one way or another, bringing a broad range of skills to the way we manage clients’ money.

Valuation tells you absolutely nothing in short term, but it tells you ever ything you need to know in the long term as to what is your expected return

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About Dean Cheeseman Dean is a Fund Manager on the UK-based MultiAsset Team at Janus Henderson Investors.

He has co-managed the International Opportunities strategy since 2019. Prior to joining the firm in 2017, he was a portfolio manager and member of the asset allocation committee from 2011 at Mercer, where he contributed tactical asset allocation ideas for all multi-asset and equity strategies. Before that, Dean was with F&C Asset Management from 2007 to 2010, finishing his tenure as head of fund of funds. Earlier, he was head of developed markets with Forsyth Partners from 2001 and head of collective investments at Morgan Stanley’s Quilter from 1998. He began his career as an investment analyst in 1995 with Chartwell House Asset Management.

Dean holds a BA degree (Hons) in financial services from Nottingham Trent University. He has 24 years of financial industry experience.

But it’s not just about delivering off-the-peg solutions. We make a big effort to listen to advisers in order to understand their needs and to develop products and strategies to suit those requirements. An example of this was the launch five years ago of our Core Income funds. This all came about because advisers told us that’s what they wanted – a robust and diversified approach to investment with volatility management, with dependable natural income but all at lower cost. We built it to meet those demands and it’s a strategy that is equally relevant today.

Looking ahead, if there’s one particular strategic change in the air for us, it’s increasingly about moving from products and towards building more customised solutions for advisers and their clients. We’ve got all the skill sets and resources here to deliver, so if our existing product range isn’t entirely suitable for you, we can work with you to build a more customised solution. It’s an exciting way to work and this is the way which we see our business going over the next decade. We’re looking forward to the challenge.

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About Paul O’Connor Paul O’Connor is Head of the UK-based MultiAsset Team focused on asset allocation at Janus Henderson Investors. He is also a Portfolio Manager on the International Opportunities strategy and numerous multiasset portfolios. Prior to joining Henderson in 2013, Paul was head of asset allocation (EMEA) at Mercer.

Paul holds a first class BA degree (Hons) in economics and an MSc in economics from the London School of Economics. He has 24 years of financial industry experience.

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THE ROLE OF THE PRACTICE MANAGER Is your financial planning business running as efficiently and effectively as possible? Is your work/life balance a thing of envy or a thing of the past? Tracey Underwood of PACE Solutions considers how using a practice manager can not only transform the success of your business but also help you to lead a more fulfilled and happy life into the bargain

Does the following scenario sound a bit familiar to you?

You start the day with good intentions; you have a review meeting with one of your most influential clients and the afternoon is free to write up your file note and review your business plan. However, when you arrive at the office you find yourself interrupted with requests from various members of the team, a phone call from your compliance provider, an invoice that needs querying and one of your team wants to discuss with you what exam they should take next. In my experience, this is a common occurrence within businesses. Events will often overtake the best of intentions with the result that the principal becomes embroiled in spontaneous day to day management issues when they had other tasks scheduled. Time management becomes increasingly more difficult.

As a result of trying to juggle so many different roles across the business, the quality of service and advice can suffer – as can overall business success. In an attempt to address the issue, the principal will usually end up working longer hours. Pressure is also added onto the existing support staff. Work/life balance becomes a thing of the past and

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there appears to be no end in sight to this ongoing cycle.

Everyone seems to be working flat out but there’s no time to take on more work or plan for the future. I refer to this as the ‘hamster wheel’ effect. There comes a point when this is holding the business back – and steps need to be taken to change things for the future or damaging consequences will result.

HOW TO GET OFF THE ‘HAMSTER WHEEL’ Understanding the capacity of your business makes planning easier – as does realising that you are on the ‘wheel’ in the first place. In my recent IFA Magazine article regarding the recruitment process, I described how firms should conduct a gap and cost analysis outlining all the roles and activities that are required to operate the business.

The analysis may have concluded that some of the roles can be outsourced or there is a recruitment need. The recruitment need may suggest that the business requires the services of an operations or the more recently termed, practice manager. This could be the way you get off the ‘hamster wheel’ and all it entails.

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WHAT IS A PRACTICE MANAGER? This person is fundamental in assisting the principal, allowing them to concentrate on their client-facing and strategic planning roles. The practice manager will divert work away from the principal, either dealing with this directly or delegating throughout the business. The key is that the practice manager takes full responsibility for all operational roles within the business, only referring back to the principal if it’s business critical.

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Hiring a practice manager requires commitment. Some typical questions that need to be answered by the principal are ‘can I let go and let someone else make the bigger decisions?’; ‘how much more revenue could I generate if someone else was doing the job instead of me?’ Trust is key for an effective relationship between practice manager and principal. However, hiring a practice manager does not mean giving up total control. Their involvement can be as little or as much as the principal dictates although a clear remit should be given to maximise efficiency and effectiveness.

WHAT CAN A PRACTICE MANAGER DO?

As a result of tr ying to juggle so many different roles across the business, the quality of service and advice can suffer – as can overall business success

Crucially, the practice manager should have the necessary skills to implement from a ‘hands on’ level that the principal will not necessarily possess. Recruiting someone with a ‘hands on’ operational background will prove much more effective to the business and is likely to gain greater buy in from the support staff than if the principal tried to do this.

A practice manager is neither an administrator, personal assistant nor office manager. This person will hold a strategic position within the business and needs to have the relevant operational and industry experience; although the latter is not always a requisite.

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To get the most out of this role the practice manager would be involved in: 1. IMPLEMENTATION AND ONGOING MONITORING OF THE CLIENT SERVICE PROPOSITION At a strategic level, the principal may decide on what services are to be offered to which clients but someone will have to implement the offering and ensure that advisers and support staff understand the process. This is a role for the practice manager; they will implement the service proposition into your client management system, create the client-facing documents (or liaise with the external marketing company) and implement the processes needed to support your client service proposition.

The business may well get outside help to put this together but critically someone has to implement it to maintain effectiveness.

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2. PROCESS IMPLEMENTATION If the business is to remain profitable and boost overall success, it needs to have efficient systems and processes in place. It will be the role of the practice manager to implement these. They will need to work with the staff to map out, train and implement the internal processes. The processes will also need to be reviewed and changes implemented where necessary.

3. MANAGEMENT OF THE SUPPORT TEAM This would include day to day management of workflow either through the paraplanning and administration manager or directly with the team (this will depend on the size of your business).

4. HR Many financial planning businesses will not have the resources to hire a full time HR manager.

The practice manager would be involved in implementing, reviewing and conducting the following: •

Staff appraisals

•

Recruitment (implementing the process outlined in my recent article)

•

Staff training & development plans

•

Key Performance Indicators (KPIs). In this regard I am not referring to compliance KPIs but indicators that are much more in line with the business objectives, particularly with regard to the service proposition. For example, are existing client reviews being completed? If not why not? What are new client levels, who are the key introducers, which clients are leaving and why? This management information will be useful in making strategic business decisions.

5.

FINANCIAL MANAGEMENT

Whilst the practice manager would not be involved in the day to day financial management, they may need to be involved in budgets, checking invoices and financial forecasting.

6. MANAGING OUTSOURCED RELATIONSHIPS The business also needs to recognise that some of the current roles within the firm may be undertaken more effectively if outsourced. This could include compliance, IT, HR, even paraplanning and it would be the practice manager’s role to manage these relationships, ensure terms and conditions are in place, review pricing and checking invoicing.

7.

COMPLIANCE

If there is no dedicated internal compliance department, the practice manager may be involved either directly or through the outsourced relationship.

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HOW MUCH DO I PAY FOR A PRACTICE MANAGER? The remuneration package you will need to offer in order to attract the right person will vary regionally and will also depend on the experience and qualifications of the individual you appoint. I must just add in here that it doesn’t necessarily dictate that a practice manager has to have professional financial planning qualifications although this will help them understand industry issues.

Starting salaries can be from £35,000 but can be significantly higher depending upon the size of the business and the level of responsibility delegated to the practice manager. Of course, outsourced practice manager services can be used either on an interim basis until a practice manager is recruited or on a permanent basis if the needs of the business do not require a full time practice manager.

It doesn’t necessarily dictate that a practice manager has to have professional financial planning qualifications although this will help them understand industr y issues

Whichever route you decide to take, by making the decision to get vital support in running the business you’ll have made a big step towards improving its overall efficiency and streamlining future success. As well as allowing you the scope to focus your time and attention on those areas which are of most high value to the business, the chances are you’ll find that alongside greater success you will probably enjoy your work more, feel greater satisfaction and fulfilment and have a much improved work/life balance too. Good luck!

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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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THE UNINTENDED CONSEQUENCES OF RDR Changes to legislation in recent years have brought big changes to the way advice is delivered for clients in the UK. Verona Kenny, Head of Intermediary at 7IM, reflects on some of the unintended consequences of such legislation but remains positive that the future for professional advice is looking extremely bright

T

he 2013 Retail Distribution Review (RDR) transformed the way the UK financial advice market operated.

Designed to restore confidence in the financial services industry, it was lauded by some at the time as a muchneeded clean-up of the sector, and it was followed subsequently by the Financial Advice Market Review in 2016.

Deeply unpopular among advisers, the legislation was meant to provide some much-needed assurances and clarity to the public around just what they were paying for, and in making advisers more directly accountable to their clients. Very few would contest that these were areas that needed to be addressed.

UNINTENDED CONSEQUENCES While increased transparency and increased public confidence should of course always be applauded, there have been some clear, unintended consequences of this all-encompassing legislation.

of RDR. As higher levels of qualifications were introduced, it left many veteran advisers in their 50s or 60s with two options: either they would need to take a set of costly exams in order to continue in their role for a few more years, or be forced to retire, selling their current set of clients on to someone else. This, as well as the higher bar RDR set and the additional cost pressures this placed on firms, resulted in a large number of advisers exiting the market.

While RDR was the regulator ’s answer to the short comings of our industr y, I believe that innovation is the key response and that the level of innovation we have seen so far is only the tip of the iceberg in terms of what we can do for clients

Firstly, we saw a large amount of contraction across the industry in the immediate aftermath of the introduction

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MIND THE GAP However, adviser numbers post-RDR have not decreased to the levels that many thought they would. Instead, a different and more impactful change has occurred. Advisers are now looking after fewer mass-market clients as they have become more selective about which clients they deal with and take on. This has led to undoubtedly the biggest unintended consequence - the advice gap - which has left it much harder for people with smaller portfolios to access formal financial advice.

It could be argued that there has never been a better time to be an adviser due to the unprecedented demand for advice

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retirement income solutions have a key role to play in ensuring that clients have a sustainable income at retirement and that they don’t run out of money – two major concerns at the forefront of many people’s minds.

A POSITIVE OUTLOOK While there can be little doubt that the advice industry has gone through a period of pain following the introduction of RDR, it has emerged stronger and I believe it will continue to grow from strength to strength.

The industry is more transparent and the practitioners within it are better qualified than perhaps ever before making it easier for advisers to justify the fees they charge.

In fact, it could be argued that there has never been a better time to be an adviser due to the unprecedented demand for advice.

Of course, there is more work to be done but there’s been huge progress and I have conviction in our industry’s ability to continue to innovate and rise above these challenges.

From the adviser firm point of view, small portfolios were no longer cost effective to run and many investors could not afford or justify the upfront fees to engage with a firm.

OPPORTUNITIES FOR INNOVATION However, it should be said that in recent years, this subsequent gulf has made way for innovation to flourish, with solutions such as robo-advice entering the market to help people with smaller portfolios to receive access to much needed advice.

While RDR was the regulator’s answer to the short comings of our industry, I believe that innovation is the key response and that the level of innovation we have seen so far is only the tip of the iceberg in terms of what we can do for clients.

A perfect example of this is the opportunity to create new and innovative solutions for clients in their decumulation stage since the introduction of pension freedoms.

About Verona Kenny Verona joined 7IM from the UK’s largest platform, Cofunds. As Head of Intermediary she leads sales, relationship management and service for the 7IM platform. Since platforms are how people invest, Verona is passionate about getting people excited about investing, or if not excited, at least doing it.

We are already seeing this come to the fore through the increasing popularity of centralised retirement propositions. While not quite yet in the mainstream, centralised retirement propositions and associated

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THE USE OF TECHNOLOGY IN FINANCIAL PLANNING Are you making the most of technology within your financial planning firm? With a myriad of technology options available to advice firms, it can be a challenge to work out which ones will be most effective and efficient for your individual business needs. This month, IFA Magazine brings you a special focus on the use of technology to help you to review your approach and give practical tips and ideas on how you can make more of the opportunities available for greater business success

The use of technology within financial planning is a topic we’ve covered in previous editions of IFA Magazine.

In the past, we’ve focused more on user applications such as cash flow modelling tools, looking at how the integration of technology can help financial planning firms to boost their client service proposition and deliver greater client engagement.

This month, we’re taking a broad look at the subject of technology. We’re extremely grateful to our range of experts who have given us their opinions and practical tips this month on how you can review the different options available and help you to become more tech savvy.

Zahid Bilgrami, CEO at Defaqto considers the best ways for an adviser to introduce technology into the financial planning process and the key considerations to take when selecting a technology partner. Faith Liversedge and Jon Pittham look at using technology for marketing. Faith has crammed so much into a few pages with tips on how you

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can optimise your business website whilst Jon Pittham looks at how you can use technology to support the human nature of the financial planning process. Michelle Hoskin analyses the different ways in which technology can be of benefit to planners and includes a useful list of questions that you should ask your back office and IT providers to ensure that you are making the most of the systems you have and that you are properly protected in the case of things going wrong.

Finally, last but not least, the CII reminds us of how technology can help when it comes to organising and recording your continuing professional development activities whilst we talk to Andrew Pike of NS&I about the new online information portal which they have launched for advisers.

We hope that you find something to get you thinking and some interesting ideas and concepts which you can apply within your business to boost your overall success.

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HOW TO OPTIMISE YOUR WEBSITE FROM A TECHNOLOGY PERSPECTIVE Your website is your firm’s shop window and a key business generation tool. But is it working as hard as it can?

Faith Liversedge discusses the technical foundations every adviser website needs for it to be at the top of its game.

So you’re working hard to build your online presence. You have a website that looks good, sounds good, but it’s still not bringing the clients in.

WHAT’S MISSING? There could be a number of things that are letting it down, but the best place to start would be to lift the bonnet and see what’s happening from a technical perspective.

The technological foundations of your website are hugely important if you want to attract more clients. That’s because search engines rank websites on things like speed, security and clarity, as well as accuracy, authority, clarity and professionalism.

Why? Well it’s in their interests to deliver search results that most closely match the searcher’s query. If everyone who Googled “dog groomer Chester” was shown “dog walker London” or “puppies for sale Edinburgh” instead, then it wouldn’t be used very much.

But that’s not all, search engines also want to provide a positive experience, so they reward sites that deliver that experience. That means that even if your website is saying the right things, it might still end up on page 5 of the search results if it’s not performing well.

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SO HOW DOES A WEBSITE PERFORM WELL? These criteria change frequently, which is what makes search engine optimisation (SEO) such a highly complex area. But there are certain things that every website should have for it to have the best chance of delivering a good experience – let’s start with the basics: 1.

SECURITY – make sure your website displays the green padlock symbol. This protects your site, conveys trust and pleases search engines. Some browsers (such as Google Chrome) will warn visitors before they enter a site without an SSL certificate.

2.

MOBILE RESPONSIVE – does your website look good on all devices? Web design is also fundamental to a positive user experience, which is why Google rewards sites that are mobile ready.

3.

FAST LOADING – a slow site is frustrating.

Visitors won’t hang around longer than a few seconds before leaving, and if they do, this will also affect your search engine ranking.

You can check all this for free here: https://website. grader.com

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So that’s step one, but there are number of additional things you can do to optimise your website from a technical perspective, so that it has the best chance of reaching its target audience organically, and by that I mean for free.

(Warning, there’s a lot of techy, SEO-related vocab coming up!):

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ADD META DESCRIPTIONS – these are short sentences that describe what the page is about.

This enables you to include longer phrases that your audience might be searching for, which search engines will pick up on.

8.

OPTIMISE YOUR COPY – make sure your keywords are included in the first 100 words of the copy on your page. And make sure you have at least 100 words per page (but 500 is ideal). Check for duplicate content, which can harm your site, here: https://www.seoreviewtools.com/duplicatecontent-checker/ Of course, you can’t simply ‘stuff’ keywords into the copy and hope for the best – the search engines can sus that. Your copy also has to match the user’s expectations – it must answer their typical questions and be readable and engaging.

This increases the time people spend on your site, which reduces the ‘bounce’ rate and improves your ranking.

9.

ADD LINKS – use external and internal links within your content - this helps to show that your site is well-referenced and trustworthy. While you're there, make sure there aren't any broken links on your site. These will impact your rankings too.

Tips for optimisation 1.

SET UP GOOGLE ANALYTICS – this will enable you to see how many people visit your site, which pages they’re visiting and how long they spend on each one.

2.

SET UP GOOGLE SEARCH CONSOLE – this shows you how search engines are viewing your site, from mobile site performance, to traffic queries.

3.

SUBMIT A SITEMAP – sitemaps are important because they tell search engines where to find the content on your site.

4.

CARRY OUT KEYWORD RESEARCH – this will give you a list of words and phrases your target audience are actually searching for, and how likely it is you’ll be able to ‘rank’ for them. This insight can help you to optimise your website and inform your wider marketing strategy.

5.

WRITE SHORT, DESCRIPTIVE URLS – include your keyword in the page URL and make sure they're short and snappy.

6.

ADD TITLE TAGS AND HEADERS - make sure your keywords are included in the title of your page as well as your H1 and H2 headers (your main and sub headers).

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10. OPTIMISE IMAGES – make sure your images are named using your keyword and make sure your images have an 'alt tag' – this also helps search engines to rank your site.

11. ADD A GOOGLE MY BUSINESS LISTING – this lets you manage how your business appears on Google and allows you to invite customers to add reviews – another tick in the box for search engines.

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How will you know that all of the above have been covered?

If this sounds like an awful lot of bother, don’t worry. You could send this article to your web developer or you could ask me to run a Digital Marketing Report for you instead.

This would tell you exactly how you’re doing against the criteria mentioned here.

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But if your firm’s website is not expressing who you are to the right people in the right way, it’s not going to reach its full potential.

So it’s worth spending some time over.

If your firm’s website is not expressing who you are to the right people in the right way, it ’s not going to reach its full potential

About Faith Liversedge

It will analyse your security, performance, keywords, traffic, user behaviour, sales funnel, content and design. It will analyse your social media profiles and provide tips on what you can do to improve them.

And finally…

You might still be wondering why you should be putting so much effort into your website.

The reason is because for an invisible service such as financial advice, there are very few tangible places you can express what you do for your clients. But your website is one of them. It has the potential to help you attract new clients, strengthen communications with existing clients and cement bonds with introducers.

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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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TECHNOLOGY IN FINANCIAL ADVICE Technology is driving change in financial planning. Zahid Bilgrami, CEO, Defaqto summarises why he believes that with disruption comes opportunity

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echnological advancement, automation and digitalisation are buzz words that have been around for some time. Especially within the financial industry. But, are all financial advisers about to be replaced by digital solutions powered

by Artificial Intelligence (AI) and algorithms? The short answer is, no.

Without an efficient, compliant and scalable financial planning tool, client facing technology, fundamentally, won’t be able to provide any value add.

The Amazons of this world have arguably redefined how we view technology and how willing we are to accept it into our personal and professional lives. These rising levels of acceptance are transitioning into an expectation that is driving change across all industries. Consumers have come to expect a transactional experience that provides a seamless journey whether they’re accessing services and goods online, through an app or in person.

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With a lot of advisers at least looking into the application of more innovative technology, the question is, where do they start? This article will look at the best ways for an adviser to introduce technology into the financial planning process and the key considerations to take when selecting a technology partner.

AN EVOLVING CLIENT DEMAND Technology is affecting the way advisers work and how their clients expect to work with them. Technological advancement within the financial planning industry is being driven by clients and investors who are increasingly becoming more tech-savvy and demanding visibility and transparency throughout their entire advice journey.

Technology has the potential to enhance the customer journey and create a competitive advantage for financial advisers. But before investing in customer-facing solutions and apps, advisers need to ensure they’re investing in robust financial planning systems first. Without an efficient, compliant and scalable financial planning tool, client facing technology, fundamentally, won’t be able to provide any value add.

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Forward-thinking financial advisers have already embraced more flexible processes and technology to meet the needs of their clients and enhance their working processes. Those advisers who are investing in technology are seizing the opportunity to better serve their clients, drive efficiencies and increase their earnings.

Traditionally, financial planning has been carried out in a very static format with rigid and time-consuming processes.

Financial advice is, after all, a complex service to provide - with constant changes to regulation it is crucial for an adviser to always have their finger on the pulse to ensure compliance and accuracy.

Two key questions advisers should always ask when implementing any digital solution are can this process be automated? And, importantly, should this process be automated?

However, there are many different parts to the advice process where digitisation and automation can reduce complexity whilst ensuring compliance, such as research, report production and product sourcing.

Technology has the ability to support the delivery of services to many more people, in an engaging and more

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affordable way. Traditional advisory firms should work to utilise technology to enhance their existing offering and open up services to a wider customer base.

In order to meet evolving client demand, technology should be introduced to complement and enhance traditional financial planning advice, rather than replace it.

INFORMATION FLOW Accessing information from anywhere at any time is an expectation not only in the consumer space but also in business. Data sharing is essential in the digital transformation of the financial advice industry.

An adviser should look to implement a solution that arms them with the ability to access and analyse real-time data.

With this capability, advisers can significantly reduce administration time and ultimately reduce costs.

Take, for example, research. Whether a client is building their wealth, planning for retirement, looking to withdraw an income or protect their family. The financial planning tool will provide a research workflow with access to accurate, whole of market data allowing the execution of research across funds, products and platforms. In addition, the adviser should then be able to translate this into an engaging report to present to the client without having to leave the solution.

The integration of data, updated in real-time and the use of innovative software solutions will enable financial advisers to automate previously time-consuming processes, freeing up more time to focus on their face-to-face offering.

CHOOSING A TECHNOLOGY PARTNER Two key questions advisers should always ask when implementing any digital solution are can this process be automated? And, importantly, should this process

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be automated? Firms and advisers don't want or need to overhaul the way they currently work and introduce technology for technology’s sake.

data. During the selection process, advisers need to ensure they explore how well the new system will fit with their existing systems. Failure to do so could cost time and money.

•

SCALABLE The ability to future-proof is a key component for successful and sustainable business growth. It is imperative that the financial planning tools put in place are scalable and grow with the business. Advisers need to select technology partners which provide solutions that scale over time with the option to add extended functionality as and when it’s required.

•

TRAINING AND SUPPORT Training and support are key when selecting any new technology. More often than not, as the least glamorous part of a shiny new piece of software (or hardware), it can be overlooked. Advisers should partner with an organisation that not only provides in depth training sessions at the implementation stage but also ongoing, accessible support.

The integration of data and the use of innovative software won’t work to replace financial advisers but rather work alongside them to support the work they already do

Instead, they need to strike the right balance for themselves and their clients. Current processes will need to be reviewed and assessed to identify where the introduction of new technology will create the most value and drive the most efficiencies.

Other key considerations to take, include: •

COMPLIANCE Does the solution ensure compliance? The right software tool should create an automated audit trail which evidences that due diligence has been performed and that suitable advice has been given. In addition, it should allow for adherence to current and future regulatory considerations e.g. MiFID II.

•

BACK-OFFICE INTEGRATION With the implementation of any new software tool, a key consideration is whether or not it has the capability to integrate with existing systems. Is it easy to migrate existing data? Can you carry out an entire task without switching systems? It is all well and good implementing the latest software tool but time efficiencies can’t be realised if advisers have to re-key

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In the long run, it pays to take a step back and scope out the project to establish its purpose. Advisers should look at the potential return on investment (ROI) – how much time will the new technology save, what revenue will it generate, or what business opportunities will it open up?

Without a clear idea of what the purpose and value is, implementations are more likely to fail – or at least, create a major expense.

RISK AND SECURITY Week to week, there are stories of data leaks released all around the globe. With the introduction of newer, more advanced technology and the increased use of data sharing, there’s no hiding from the growing challenge of cybersecurity. This challenge requires advisers to manage a

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whole new set of risks around financial data, customer data, and even employee data.

but rather work alongside them to support the work they already do.

Risk and cybersecurity shouldn’t be overlooked. As with anything, many risks can’t be eliminated entirely. Therefore, businesses need to be vigilant and realistic about their appetite for accepting specific risks.

By implementing the right technology, where it makes the most impact and drives the most efficiencies, timeconsuming processes will be streamlined giving financial advisers back the time they need to do what they do best (advise).

The best way for advisers to prevent attacks is to put processes in place to mitigate risk and limit any potential damage. The same is true for your technology partners. Any organisation that provides software-as-a-service should also have robust processes in place. For example, a policy on how to manage and store data, who can download it and how it is transferred etc.

When selecting a new technology partner, advisers are well within their rights to ask questions relating to the company’s data policies, processes, accreditations and security. A good organisation will be open and transparent about how it handles data and what it's doing to protect it.

END-TO-END FINANCIAL PLANNING SOFTWARE THAT SUPPORTS THE ADVICE PROCESS Technology can go a long way to support an adviser’s current advice process. A good end-to-end financial planning tool will offer a variety of workflows tailored to meet the needs of specific groups of clients.

Consumer web behaviour has no doubt re-defined how we access financial advice and pushed Fintech development further than ever before. However, regardless of whether your client is a baby boomer or a digitally native millennial, investing is a highly emotive and complex task. A task that will always benefit from a trusted and qualified human interaction. The integration of data and the use of innovative software won’t work to replace financial advisers

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Ultimately, by taking steps to implement the right financial planning tool from the outset advisers are laying the foundations, putting them in a better position to introduce more innovative client-facing digital solutions, such as AI and machine learning.

About Zahid Bilgrami Zahid was appointed Chief Executive of Defaqto in 2012.

Previously, he was a Senior Manager in Andersen’s Business Consulting division, where he was responsible in leading strategy, merger integration and turnaround initiatives with global blue chip clients.

Subsequently, he joined Balfour Beatty as the Business Transformation Director responsible for improving operational performance in problem operating companies. Following successful transformations, Zahid moved into Balfour Beatty's corporate planning and strategy group at head office. Here, he was responsible for helping the board shape group strategy, and for leading and managing acquisitions and divestments.

Zahid qualified as a Chartered Accountant and is a Fellow of the Institute of Chartered Accountants in England and Wales. He holds a BSc Hons in Economics with Statistics from Bristol University and an MBA with distinction from London Business School. Zahid also holds a Masters in Wealth Management and is a member of the CISI. He is a skier and a casual golfer.

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ARE YOU MAKING THE MOST OF

TECHNOLOGY? Michelle Hoskin looks at the bigger picture and suggests some practical ways you can review how you use technology in your financial planning business in order to boost your overall efficiency and effectiveness

I think it is safe to say that, at times, technology can be your best friend – while at other times you are about ready to push it off the edge of a cliff!

Now, back in the day, like many of you, I started off my journey in this magical sector as a trusted administrator working my way up and through the career ranks. That was before finally pushing myself off my own cliff with the brave - and somewhat naïve - decision to leave the comfort of the 9–5 (like it was ever a 9–5 job!) to not just help one financial planning practice but rather to hopefully help thousands of them.

It is this journey which gave me the gift of seeing things from both sides of the table. Although it doesn’t really stop there. As the designer of British, international and sectorspecific standards, I believe I have a unique view of the technological space … a view held by no one else.

Let me share. Without stating the bloomin’ obvious, technology – in my opinion – does one of three things.

If we are one of the lucky few, it will do all three at the same time: 1. IT PERMITS – to make possible.* 2. IT PROTECTS – to cover or shield from exposure, injury, damage or destruction.* 3. IT PROPELS – to drive forward or onward by or as if by means of a force that imparts motion.* *Source of definitions: https://www.merriam-webster.com.

So, before you start effing and blinding at the computer screen the next time the internet goes down, just take a moment and think about what I am about to say.

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Let’s break this down and look at each of the three areas individually: 1. IT PERMITS – to make possible. Yes, we all know how amazing you are at your jobs but honestly how much of that is us and how much of it is the technology that we are using to play the ace card?

When we turn on our computers in the morning, do we even think about how much we appreciate and love the tools and technology that sit in front of us? Probably not – but I think we should. However, if you genuinely can’t quite swing your arms around your computer screen first thing in the morning like it is your long lost friend, then I’d ask you: are the tools and technology you have fit for the job in the first place? Who chose them and why? Do you actually know how to use the tools that were ‘gifted’ to you? Is your knowledge and understanding of the system so out of date that you thought the term ‘super user’ is the name of the next Marvel movie?

Choose wisely: every day you only get a micro few hours (in the whole grand scheme of things) to perform your miraculous duties, so efficiency and effectiveness make the difference between thriving or just surviving.

2. IT PROTECTS – to cover or shield from exposure, injury, damage or destruction. Yes, we’ve all heard it. The right infrastructure will prevent us from doing anything silly – although in the wrong hands, anything is possible. The right systems and tools keep you on track, stop you doing anything stupid and flag up the stuff that doesn’t quite look right.

They are intelligent, intuitive and keep us out of

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trouble. We are surrounded by an abundance of systems and solutions designed by professionals in our sector, for professionals in our sector; however, the next time you get the chance, it may be time to turn the heat up on them!

According to Tony Richardson (Founder and MD of Octree Limited, https://www.octree.co.uk), there are 10 questions you must ask your back office and IT providers. These questions are as follows: 1.

Am I secure? (The answer is ‘there is no silver bullet’; however, Tony is always fascinated by the response to this question.)

2.

How do you keep me secure? (Cyber security is a process, not a target – it needs managing, not to be ‘set and forget’. The devil is in the detail.)

3.

What current and future threats do I face? (If you don’t know, how can you protect me?)

4.

What devices are on my network and what do they all do? (Shadow IT is a major problem and a serious cause of data theft/loss. This means things like unauthorised cloud apps, personal storage devices etc.)

5.

Am I getting the most from my staff? (A leading question to see if they really know what’s going on around the network, e.g. browsing habits, and whether you can trust them.)

6.

What is our business continuity and disaster recovery plan? How long before I’m operational again? Can you guarantee I will recover?

7.

How do we train our staff to be more cyber aware?

(Technological controls are not enough – your staff could unwittingly be your biggest threat.)

8.

Do you really understand my business needs, as well as my legal and regulatory compliance mandates, or are you giving me what you think I want (or what’s best for you)?

9.

Are my systems current and the most effective they can be?

10. Do you keep me regularly informed of technological advances and how improvements can be made?

And that’s not all. If you are not happy with the answers … it may be time to push them off the cliff!

3. IT PROPELS – to drive forward or onward by or as if by means of a force that imparts motion.

This is my favourite. Oh, my goodness! With the right tools in your hand … how far could you

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really go? How much could you really achieve? It’s kind of scary to think about it, but super exciting at the same time. I think we can all be honest here (me included!) and confess that we actually have no idea how to use many of the tools that we have available to us. I know for a fact that my MacBook Pro has way more functionality, gizmos and gadgets than I dare to imagine what to do with … BUT I can tell you that I work faster, smarter, more flexibly, more streamlined and I am way more organised with the tools than without them. Voice notes, videos and Zoom calling help me to stay in touch with my clients and my team all the time and in real time. Technology is the single biggest and most important tool that will support our business to deliver global services without limitation and without restriction. So, why on earth would we not want to leverage and squeeze every last drop of functionality out of every tool and platform we can get our hands on? Regardless of whether you are creating a global movement of change or not – you are still changing lives somewhere and I know for a fact you could do it way better if you tooled up to truly unleash your potential.

About Michelle Hoskin Michelle Hoskin (aka Little Miss WOWW!TM) 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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HOW TECHNOLOGY HAS TRANSFORMED MARKETING FOR FINANCIAL PLANNERS In this third article for IFA Magazine, Jon Pittham of ClientsFirst considers how planners can harness the power of technology to support the human nature of the financial planning process

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echnology has transformed how customers use the internet and big names such as Amazon and Apple have been at the forefront of engaging new users in new ways on their digital platforms.

have come to expect, financial planners are testing new marketing and communication methods to ensure that technology doesn’t replace the human element of financial advice. Instead it’s a focus, through technology, on the very human value you add.

This transformation has led consumers to expect the same level of personalised service from pretty much all their service providers, including financial planners.

Early adopters of new technologies have enjoyed rapid growth, as that same tech allows planners to elevate their proposition well above their traditional service model. For instance, artificial intelligence is offering massive gains in efficiency and performance across the board. Also, robotic investing uses algorithms to recommend investments and can sometimes even invest a client’s money on their behalf.

With the popularity of this kind of technology rising, we’re seeing firms focus on delivering a far more personalised and engaging client experience. With a sleek website and the cutting edge offerings that clients

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With technology taking over much of the day to day process of client onboarding and engagement, there’s an opportunity for financial services firms to use it effectively in order to emphasise the human element of their service

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THE PERSONALISATION OF MODERN MARKETING IN THE ADVISORY SPACE

different subject lines and content allows you to gain insight into what makes your prospects tick, and finally convert.

People have unique likes, dislikes, hobbies and preferences, all of which can be reflected in how brands communicate with them. Whereas traditional online marketing might involve sending the same mailer to a pool of 2000 subscribers, technology allows us to capture the personal attributes of prospects using artificial intelligence and store them in a CRM.

Speaking of booking an appointment, online schedulers have pretty much eliminated the need to email back and forth with prospects and clients alike to find a good time to speak. Instead, they have the power to pick a time in your schedule, and it’s this client empowerment that helps build trust with your brand.

The major benefit is that people are more likely to engage with a piece of marketing if it has been written especially for them. This can then translate into stronger business/ client relationships, raising the prospect of retention or of upselling.

The challenge lies in managing the huge amount of data collected while still delivering personalised messaging across all your channels, whether email, social media, a call centre, display advertising and so on. Luckily, there are platforms (yes, more technology), such as HubSpot, that can help firms orchestrate their personalised marketing.

NEW TOOLS TO STAND ABOVE THE COMPETITION One challenge for advice firms wanting to stand out is doing so when everybody else is also investing in updating their tech to attract new clients. This is where finding unique ways of engaging potential new clients becomes really exciting.

Tools like Nuttshell offer financial planners the chance to send their clients hyper-personalised digital presentations, tailoring the message to each client and increasing engagement.

Analytics further allows companies to track behaviour across their sites and identify trends they can respond to.

Email automation software allows you to do just that: automate your emails. Back in the digital stone age, this used to be a time consuming process but an ‘autoresponder’ sets a sequence of emails that are sent automatically to people who have opted in. The sequence can offer the same call to action, such as booking an appointment, but testing

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Finally, it’s the value of the content that prospects and clients receive that will drive more enquiries for financial planners. Whether your marketing takes the form of a digital brochure, a series of well-crafted emails or fancy new tools that facilitate communication, advisers need to structure all this around delivering value, not simply information.

With technology taking over much of the day to day process of client onboarding and engagement, there’s an opportunity for financial services firms to use it effectively in order to emphasise the human element of their service. This, I believe, is where businesses can really start to perform going forward, by harnessing the power of technology to drive even greater business efficiency and client engagement.

About Jon Pittham Jon founded ClientsFirst in 2010, having previously worked in both plc and SMEs. Having started in what he describes as a ‘broom cupboard’, Jon has grown ClientsFirst from the ground up and continues to take an active role in both our own marketing and that of our clients, as well as setting the strategic direction of the business.

Jon’s most difficult ‘management’ task away from the office is keeping three young offspring busy but, when he’s not doing this or anything related to ClientsFirst, he heads out into the great outdoors, with tennis, golf and running the occasional half-marathon amongst his hobbies.

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NS&I LAUNCHES NEW ONLINE SERVICE FOR FINANCIAL ADVICE FIRMS After two years in the making, NS&I’s new online portal has been greeted warmly by the adviser community. Andrew Pike, Head of Intermediary Relationships at NS&I, talks to Sue Whitbread about why he and his team are so excited by the launch of this new service which is set to transform the way that the organisation works with advice firms

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ack in May, NS&I launched its new online service for financial advice firms. Firms now have secure online access to information on their clients’ NS&I holdings for the first time, via a purpose built portal.

• Get a valuation of fixed term accounts and see their maturity dates • View copies of communications sent to their clients from NS&I • View a client’s Premium Bonds prize history

The online service is available via secure log-in on nsandiadviser.com , and gives advice firms online access to a range of information about clients’ NS&I investments. It’s been designed and developed in response to feedback from advice firms over the last few years, which asked that NS&I make it easier for them to do business with the provider.

NS&I say that all of the developments are designed to make them easier to do business with, for both advice firms and ultimately, for clients. We met up with Andrew Pike, Head of Intermediary Relationships at NS&I, to talk about the new service and why he believes it will provide a sea change in the way in which NS&I works with advisers.

But what does this new portal actually do and how do you go about accessing it? Once you’ve registered, advice firms will be able to do the following via the new online service:

IFAM: Andrew, we know that these are early days for your new online portal, but has adviser take-up to date been in line with your expectations?

• View a list of their clients with NS&I holdings (subject to a Letter of Authority) • Select a client and view their NS&I portfolio • View the transaction history of an account

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AP: Indeed, it’s probably too early to say at the moment as the official launch of the portal was only in May, but the signs are looking extremely encouraging. We’re already

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getting plenty of very positive feedback about it. We realise that it will take time for the message to get out to advisers and their teams about the portal and the benefits it delivers.

The new portal represents a significant investment by NS&I. We’ve spent the last two years working on this initiative and it’s very pleasing to see it go live. It’s our belief that ultimately we should get most advice firms registering for this service. The logic behind me saying this is multi-faceted. Advisers know that NS&I is unique in that we have the 100% security guarantee because we’re backed by HM Treasury. Another reason is because some of our products, such as Premium Bonds, are unique and attractive. It’s been interesting to see that cash – especially since holistic financial planning has become more widespread in the financial planning profession – has become an integral part of the portfolio planning process rather than a peripheral matter as it was in some cases in the past. Research we’ve carried out recently has shown us that 97% of advisers now discuss clients’ cash positions during conversations with them. It’s a small minority which don’t.

It ’s our belief that ultimately we should get most advice firms registering for this service

Putting all these things together, we can’t think of any reason why advice firms would not want to register to use the platform. Even if some advisers don’t include NS&I products or cash in their discussions with clients, they will almost certainly have clients who have NS&I products in their portfolios, and so it would make sense for them to be able to access the information on all their financial affairs.

Registering for our new service gives them this missing piece of the jigsaw.

IFAM: What’s the user feedback on the new portal been like so far?

AP: I’m pleased to say that feedback from financial advisers, planners and paraplanners has all been extremely positive so far. We’ve had people say to us that it is

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“revolutionary” and is a “game changer” which I think shows the depth of feeling towards it and how helpful they believe this will be for their businesses and their clients.

The only aspect which advisers have said they’d ultimately like to see on it and which isn’t on the platform yet is Trusts. However, work is underway on this and we plan to integrate it as soon as possible.

Recently, I was speaking at the six PFS ‘Purely Paraplanning’ events which were well attended. I was delighted that so many paraplanners came up to me after they’d heard me talk about the online portal to say how enthusiastic they were about the new service. Even those who hadn’t used NS&I much in the past were saying that as a result of its introduction they’d be looking to use our products more with clients in future. It’s been a great start.

IFAM: The main focus of the new platform is clearly on providing adviser firms with access to information but will it make it easier for advisers to place new business with NS&I too?

AP: Overall we’re hoping that this new service will make advisers’ lives easier because it gives them all the information that they would want about their clients’ holdings with us. It’s not only about valuations and holdings etc, but also they can see all the communications which go out to their clients from NS&I too. In this way they will be fully informed and in control of the relationship. They can be on the front foot with any discussions which are needed and take the initiative to follow up on anything of importance directly with their clients rather than waiting to hear it from them first. Also with Premium Bond prizes being on the platform, advisers can easily calculate the return their clients are getting for the first time.

With this new service we’re aiming for mass market penetration in terms of advice firms. So, if we believe that there are currently around 5,500 advice firms practising in the UK, then we’re aiming to get around two thirds of these firms registered to use our new online portal within the first two years. I can’t see any reason why we can’t achieve that target. Of course, it is likely that we will need the support of paraplanning and administration teams to help integrate the service into their firms. We’re working with them as well as with the adviser community more broadly, to help us to achieve this ambition.

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However, in terms of transacting business, essentially this hasn’t changed as a result of the introduction of our new online portal. Application forms for all our products are available on the dedicated NS&I website for advice firms – the Adviser Centre. Advice firms tend to print them off and complete them, ask their clients to sign and then send the forms in to us. This hasn’t changed. However, transactional access is a logical next step for us to look at developing, but we need to walk before we can run in this regard. We need to get the new information access facility fully embedded with adviser firms having registered and using it before we progress to the next stage.

We will start to research transactional access requirements with advice firms and other parties next year. Part of that will be to look at the different options as to how we might do it. One option would be to add it to the service we’ve just launched. Another option is to add NS&I products to third party platforms. There’s also the question of integration with cash management systems, and maybe even back office systems. We’ll be assessing all of these options in due course. However, it’s important to stress that it will be mostly driven by the appetite of advice firms, by their specific requirements and where their priorities indicate we need to deliver. We need to ensure that we spend our money wisely in any developments we bring in and so it is important for us to be very thorough in our research and deliver what advisers actually want and need most. When we carried out research on transactional access a few years ago, the large majority of advisers told us that they wanted information access as a priority but they also indicated that transactional access might be useful too. Once we’ve got the online portal embedded, with most advice firms registered, then we can build on that and go to the next level.

IFAM: How does the portal work in practice? How can you safely ensure that the whole support team within the advise firm can access the portal?

AP: Importantly, all staff in an advice firm can be granted access by a ‘super-user’ in the firm, including all advisers, planners, paraplanners and administrators. It’s up to the firm itself to decide who gets access. As part of the research we carried out when developing the service, one element that firms told us would be important for them was to get whole firm access to the portal. This has been delivered.

To register, there are two documents which must be completed. We’ll need ‘letters of authority’ for clients of course plus we require one ‘terms of business’ agreement to

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be completed per firm. This basically forms the contractual arrangement between us, the adviser firm and their clients.

Those documents are designed to facilitate whole firm access as they’re in the name of the firm not individuals.

This is all set up initially with a ‘super- user’ – the first person in a firm to use it. They’ll get an automated email coming through with a link. In the case of medium-sized firms, perhaps with around 15 staff in one location, they’ll probably need a couple of super-users within the firm to cover annual leave, sickness etc. Beyond this, it will be up to the firm itself to whom they feel comfortable giving access – although of course that would be normal user access.

For larger firms where there may be 10 or 12 branches for example, then each branch will probably need a super-user.

The security behind all this, us being NS&I, is particularly robust as advisers will expect, because we’re linked to government. This brings considerable peace of mind to all parties.

We expect that this new portal will create a real sea change in our engagement with adviser firms

IFAM: Has the introduction of the new portal helped to boost your engagement with advice firms?

AP: Yes it has, although these are early days. As I’ve said, the feedback we’ve had already has been extremely positive.

I’ve witnessed that enthusiasm for it first hand at a number of adviser events at which I’ve spoken since we’ve launched the platform. We expect that this new portal will create a real sea change in our engagement with adviser firms.

Although we’re lucky that advice firms are largely positive about dealing with NS&I, I say this as we usually score 8/10 in terms of adviser advocacy, we also know that historically they have sometimes been frustrated with our service because we haven’t made it very easy for third parties to get access to the information they need. This new development addresses the issue head on. It takes away the last barrier which we believe might stop an adviser recommending NS&I products. We hear more and more that we are now

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being seen by advisers as the default home for the cash element of a client’s portfolio and this is especially so since the service was launched. Ultimately it’s about us giving firms easier, faster access and more information than they’ve had before – and to all relevant staff.

The really key difference about NS&I is that we don’t have our own branches and we don’t have our own advisers. We need advice firms – and I would argue that they need us too

I think that there is one important aspect about NS&I which is often overlooked by advisers. Sometimes we get grouped together with other product providers such as banks and building societies. I can understand this of course, as some of the products we offer are similar to those that they offer. But we also have our own unique products too. However, the really key difference about NS&I is that we don’t have our own branches and we don’t have our own advisers. We really need advice firms – and I would argue that they need us too. The relationships which advisers have with us are very different to those which they would have with a bank or building society.

July/Aug 2019

or a trust. Our Direct Saver product is also very popular – it’s an entry level savings account – but one which has a £2m maximum limit. For a couple it means that up to £4m can be invested securely. Sometimes advisers will use this account as a temporary home for cash if they are dealing with a client who has come into a windfall – maybe through a lottery win or Premium Bond win or any other means. This then gives them the time to build the financial plan and the longer term investment strategy whilst knowing that the money is 100% secure.

As well as the security element and the enhanced information service now available, there’s also something of a ‘brand halo’ effect going on when a firm works with NS&I. I know it’s a rather corny term but NS&I is typically seen as the most trusted financial services provider by both advisers and their clients. Advice firms have told us that a recommendation of NS&I products to a client – new clients in particular – has often engendered additional trust by those clients in their firm and their advice process.

We’re delighted to hear this is happening as we believe that there’s real synergy between sound financial planning and the products and services which NS&I provides. The new portal is a clear statement of our intent to form closer ties with adviser firms, to the benefit of all parties.

Further information on the new online service – including how to register - is available on the NS&I Adviser Centre website (nsandi-adviser.com ).

IFAM: What are the most popular NS&I products with advisers? Why do you think this is?

AP: Premium Bonds remain a very popular choice with advisers of course. We did some research a few years ago which told us that 75% of advisers recommend Premium Bonds regularly. One told me recently that they wouldn’t actually have someone as a client unless they had Premium Bonds in their portfolio! But it’s not just about Premium Bonds. NS&I Income Bonds are also popular. This is not just because they offer a monthly income but also because they have a high maximum investment limit of £1m, which is also 100% secure, so FSCS rules are not cause for concern. Income Bonds can also be held in a SIPP, SSAS

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About Andrew Pike Andrew is a financial services professional with over 25 years' experience in key account management, business development and marketing. He has managed partnerships with several large blue-chip organisations as well as being a primary interface for SMEs. For the last four years he has led the team that manages NS&I's relationship with the financial advice community.

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TAKING CPD

ONLINE

There are many ways in which technology is helping to boost efficiency across the financial planning profession – and this includes how you manage and record your continuing professional development activities. Matt Connell of the CII highlights the benefits to advisers

There are lots of different ways to demonstrate Continuing Professional Development (CPD). The FCA rules are deliberately flexible to allow advisers the opportunity to manage their own development it in a way that is appropriate to them and their business. With different regulations, there are also different ways to measure it.

Qualified advisers must demonstrate that they have undertaken 35 hours of CPD each year. This can be a mix of both structured and un-structured learning, with certain conferences and events qualifying as CPD. Traditionally, advisers attend CPD-able events and receive a certificate that proves to the regulator that they were there. At the end of each year, the adviser also writes a reflective statement showing what CPD they have undertaken, what they have learned and how this relates to their CPD plan.

While this has been effective in ensuring advisers undertake CPD and record it, the process is fairly inflexible and reliant on paperwork. For busy advisers, writing a reflective

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statement may not be a high priority following a day out of the office at a conference while clients are waiting for advice. Inevitably, there is often a rush to write up the paperwork just before the deadline when the salient points may have long been forgotten. Using a technology-based CPD programme can help with this. All CPD can be recorded in real-time and advisers can save notes online, which can be pulled up instantly should the regulator want to check.

Online CPD programmes can be adapted and updated as new regulation is introduced or products changed

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ADAPTING TO NEW REQUIREMENTS

MAKING LIFE SIMPLER

However, the real benefit in this is in the ability to be able to adapt CPD to meet new regulatory requirements. Since the Insurance Distribution Directive (IDD) was introduced, those advising on insurance products, including pensions, have to show that they have carried out 15 hours annual CPD covering set topics. Although this can be part of the 35 hours an adviser is already doing, the regulations stipulate which topics must be covered and this may not fit with an adviser’s existing CPD plan. Within the insurance-based investment products list, there are 12 different criteria listed alone. It is difficult, if not impossible, to cover all of the topics at structured learning events and conferences without going over 15 hours, and yet advisers must demonstrate CPD in this area to remain compliant.

The CII has developed a simple-to-use online CPD tool to help advisers to plan and record CPD activity. It is not compulsory to use the tool, but it is useful to maintain an audit trail of CPD activities. It also contains a useful summary of activity to help advisers to benchmark their activity against target. It enables advisers to record hours-based CPD and includes functionality that will automatically record details of attendance on any CII Faceto-Face Training courses or events. For users of Financial ASSESS (the CII's online learning and compliance system), the system will also enable advises to enter details of other CPD activity undertaken outside this system.

When it comes to CPD, advisers have more tools available to them now than ever before.

The adviser should choose whichever method fits his or her CPD plan, personal style of learning and their business need

Online learning is becoming more widespread in the workplace as a quicker and often cheaper way to train staff at their desks. Not only does it reduce the time away from the business but training programmes can give immediate feedback to the student and flag any areas where additional learning is needed. Online CPD programmes can be adapted and updated as new regulation is introduced or products changed. It can also allow people to study at a time that suits them in or outside of the working day.

It also gives management site of what training has been undertaken and by whom, to demonstrate compliance to the regulator when asked.

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When it comes to CPD, advisers have more tools available to them now than ever before. The adviser should choose whichever method fits his or her CPD plan, personal style of learning and their business need. We will continue to support our members by creating tools to help them develop professionally in a way that suits them.

About Matt Connell Matthew Connell is Director of Policy and Public Affairs at the Chartered Insurance Institute, where his focus is to build public trust in insurance through dialogue with consumers, policymakers, influencers and industry professionals. He has worked at the CII since March 2017.

Previously, he was Head of Regulatory Developments for Zurich Insurance Group’s UK Life Business. He has worked in banking and insurance for more than 20 years, and was the Chairman of the Investment and Life Assurance Group (ILAG) between 2015 and 2017. He holds an MSc in Public Relations from the University of Sterling and a PhD in Policy Studies from the University of Warwick.

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PICTET ASSET MANAGE M E NT

ROBOTICS - THE

FUTURE

OF TECHNOLOGY Discover the next frontier of technological achievement and invest in a theme affecting all aspects of life. John Gladwyn, Senior Investment Manager of the Pictet-Robotics fund, reminds us that the robotics industry, buoyed by powerful long-term trends such as technological breakthroughs and demographic changes, has not only already demonstrated significant growth but also has strong potential to deliver positive investment returns in future

B

ecause of its ability to increase productivity, reduce costs and help solve the challenges linked to an increasingly elderly population, the robotics sector is set to grow significantly faster than the broader economy over the coming years.

Significant advances in the Internet of Things (IoT) and artificial intelligence, such as the emergence of deep learning algorithms, are revolutionising robotics and automation technologies. Robots are no longer confined to the factory floor – they are becoming part of our dayto-day lives.

We believe there are investment opportunities in three main areas of robotics. In industrial automation, companies are building new generations of smart robots to support industrial processes. Robotic solutions are increasingly aimed at consumer and services applications that help with people’s everyday lives. The growth of enabling technologies will provide robots with the ability to communicate and respond to situations with a greater level of intelligence.

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INDUSTRIAL AUTOMATION This is a fast-growing and global market. Robots are already used extensively in Japanese and European industries, but as they become cheaper, smarter and more energyefficient, countries such as China and the United States will increasingly deploy robots to improve productivity and reduce labour costs. In 2025, countries such as South Korea are expected to reduce their manufacturing costs by up to a third by using robots1.

We believe there are investment opportunities in three main areas of robotics

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The revolutionary manner in which industrial robots, such as the new generation of automated ‘Cobots’, can collaborate with human workers is a result of technological improvements and enabling sensors that increase safety.

This, coupled with increased affordability, leads us to anticipate a rapid expansion in the use of robots by smaller companies as well as larger firms.

CONSUMER & SERVICES APPLICATIONS Robots are fast becoming a part of our day-to-day lives in places as diverse as homes, factories and hospitals. Unmanned aerial vehicles, with automated commercial drones, are benefiting from an improving regulatory environment.

The Federal Aviation Administration, which regulates civil aviation in the US, is phasing in the commercial use of drones after giving out almost 4,000 exemptions to restriction between late 2014 and March 2016 alone2.

Meanwhile, virtually all robotics developers – from innovative start-ups to industry leaders – are working on new medical applications.

Robots are being developed to assist in the operating theatre, monitor vulnerable patients in their homes and help stroke patients walk again through the use of robotic exoskeletons.

ROBOTS ASSISTING IN THE OPERATING THEATRE

A single type of robotics system has been used on over

3 million

patients for minimally invasive surgical procedures Source: da Vinci surgery, 2015

ENABLING TECHNOLOGIES Innovation is helping robots to carry out complex processes. Machine vision systems equip robots with the eyes (cameras) and the brains (software and sensors) they need to perceive their environment and become autonomous.

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Due to accelerating demand for applications such as medical imaging and intelligent traffic surveillance, the machine vision market is expected achieve growth of over 10 per cent annually and be worth an estimated USD 10 billion by 20203.

These technologies are helping to ensure robotics products are of high quality, as well as helping them meet safety standards and increase productivity. Growth in enabling technologies is being further stimulated by robotics development programmes. In 2014 the European Commission launched the SPARC Robotics initiative – the world's largest civilian robotics programme – which is injecting USD 750 million to encourage the development of robotic applications across a variety of industries.

In addition, the private European Robotics Association has pledged over USD 2 billion4 to ensure the continual development of future applications, such as sensors for driverless cars.

ROBOTICS – THE FUTURE OF TECHNOLOGY Because of its ability to increase productivity, reduce costs and help solve the challenges linked to an increasingly elderly population, the robotics sector is set to grow significantly faster than the broader economy over the coming years.

[1] THE BOSTON CONSULTING GROUP, THE ROBOTICS REVOLUTION, 2015 [2] FEDERAL AVIATION ADMINISTRATION [3] MARKETSANDMARKETS, MACHINE VISION MARKET REPORT, 2015 [4] EU ROBOTICS

About John Gladwyn, CFA John is Senior Investment Manager, Pictet-Robotics fund. He joined Pictet Asset Management in August 2017 to co-manage the Pictet Robotics Fund.

Before joining Pictet Asset Management John worked at Polar Capital on the specialist Technology investment team. Prior to joining Polar, John worked on a Global Equity investment team at Blackrock, which he joined in 2008. John completed his BA at Oxford University and has a Masters in Finance (Distinction) from London Business School. He is a CFA Charterholder.

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CAREER OPPORTUNITIES Position: Financial Planning Administrator Location: BRISTOL Salary: £20,000-£24,000 per annum This well-established firm specialises in wealth management and financial planning.

The opportunity: The role would involve providing a range of administrative support and back office assistance.

What’s needed for me to be considered: •

Progress towards the Level 4 Diploma qualified would be preferable

•

Experience within a financial planning firm would be advantageous

•

Able to have a good understanding of the Financial services industry

•

Positive attitude and able to work well alongside a team.

Position: Technical Manager Location: CHESTER Salary: £40,000-£50,000 Per annum The client: This highly reputable Financial Planning practice has a strong presence in the North West.

They are looking for a Technical Manager to act as point of contact for technical queries that arise from the Compliance department, Paraplanners and IFAs.

What’s needed for me to be considered?

•

Level 4 Diploma qualified as a minimum

•

G60, AF3 or AF7 exams are highly desired

•

Financial Services experience is essential preferably obtained in a life and pensions environment

Position: Senior IFA Administrator Location: BROMSGROVE Salary: £18,000-£25,000 per annum The opportunity: A fast paced and well-respected Financial Planning & Wealth Management firm seeks an experienced Senior IFA administrator to join a growing firm and to support the firm’s paraplanners and advisers.

What’s needed for me to be considered: •

Previous experience within the IFA practices is preferred

•

Knowledge and understanding of the FCA regulations

•

Effective communication, both written and verbal

•

Have a professional, proactive and positive attitude

Position: Training and Competence Supervisor Location: BIRMINGHAM Salary: £40,000-£45,000 per annum The opportunity: There is a fantastic opportunity for a successful T&C Supervisor to join a well-established Financial Services Practice in a field/ remote based role across the region.

What’s needed for me to be considered: •

Detailed knowledge of FCA rules and their interpretation/application

•

Ability to train and motivate others whilst remaining flexible/adaptable

•

Highly developed analytical, observational and communication skills

•

Significant compliance experience within the financial services, preferably in an investment or insurance environment.

An in-depth understanding of FCA/PRA regulatory expectations.

•

Experience working within a network of Financial Advisers

•

L6 Advanced Diploma working towards Chartered Status (Non Essential)

•

J07 Supervision in a Regulated Environment (Non Essential)

Position: Technical Analyst Location: LONDON Salary: £35,000-£50,000 per annum The successful candidate will play a key role, using their experience and expertise to support the advisers in this award winning financial planning business. In addition, this role will have the opportunity for significant client interaction. This is a unique position for an experienced Paraplanner to join a recognised Wealth Management firm with a Country-wide reputation.

You’ll need a Level 4 Diploma in Financial Planning with a proven track record in a previous paraplanning role as well as excellent technical and communication skills.

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.

Powered by

BRISTOL OFFICE

LONDON OFFICE

+44 117 922 1771

+44 203 207 9075

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

Why invest in the Pictet-Robotics Fund?

A fund on a global scale Pictet-Robotics fund aims to offer a broad range of opportunities by investing in companies around the world.

A potential source of long-term growth We are convinced that, companies active in robotics, such as autonomous systems, sensors, image, motion or voice recognition technologies, could provide the opportunity to generate returns that exceed the global equity market.

Access to companies driving technological progress Companies in the robotics industry actively contribute towards breakthroughs in technology that are likely to have wide-ranging impacts across multiple sectors. Our investment team, who are experts in their respective field, seek out industry winners in innovation that are likely to grow over the long run.

Pictet Asset Management, a pioneer and leader in thematic strategies With over 20 years’ experience in thematic investing, we believe that the thematic approach is a strategy for the future.

We first identified its potential during the 1990 s, when we were one of the first asset managers to launch a biotechnology product.

Disclaimer This marketing material is issued by Pictet Asset Management (Europe) S.A.. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund’s prospectus, K IID (Key Investor Information Document), regulations, annual and semi-annual reports may be relied upon as the

basis for investment decisions. These documents are available on assetmanagement.pictet or at Pictet Asset Management (Europe) S.A., 15 , avenue J. F. Kennedy, L-18 5 5 Luxembourg.

The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments.

Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without no-

This was soon followed by our Water strategy, which remains one of the very few dedicated to this unique resource. Over the following years we have built up an extensive thematic range of 14 products which covers such diverse industries as Timber, Robotics and Health,

allowing our investors to access any number of enduring investment opportunities presented by megatrends.

tice. Pictet Asset Management (Europe) S.A. has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowled-

dicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares.

This marketing material is not intended to be a substitute for the fund’s full documentation or any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund or funds mentioned in this document. Any index data referenced herein remains the property of the Data Vendor. Data Vendor Disclaimers are available on

ge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.

The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested.

Risk factors are listed in the fund’s prospectus and are not intended to be reproduced in full in this document.

Past performance is not a guarantee or a reliable in-

The new frontier

Pictet-Robotics

assetmanagement.pictet in the “Resources” section of the footer. This document is a marketing communication issued by Pictet Asset Management and is not in scope for any MiFID II / MiFIR requirements specifically related to investment research.

This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management.