connected A Tenet Group Publication Issue 76 Summer 2020
SPECIAL FEATURES Opportunity knocks at the letting door! The value in having a two-way conversation
OTHER FEATURES Tenet Online Events Programme 2020 Our marketing toolkit could help you drive business
Lockdown and beyond
A look at our experience and the regulatory horizon
The Latest Provider Support Offering insight into market conditions and adviser opportunities
WELCOME – 3
CONTENTS… what’s in this issue
4 Lockdown and beyond
A look at our experience and the regulatory horizon Steve Jones, Adviser Relationship Director, shares our insight on how the market is reacting, as well as outlining the support we have in place for your business, followed by a scan of the regulatory horizon.
Welcome to your Summer issue of connected Following the UK entering lockdown on 23rd March, life as we know it has been effectively put on hold and we’ve all had to quickly adapt to new ways of both working and living. In our regular industry update, Steve Jones, Adviser Relationship Director shares Tenet’s insight on how the market is reacting, as well as outlining the support we have in place for your business, followed by a scan of the regulatory horizon. You can read his article on pages 4 and 5. Also in this edition Protection is still an area of dedicated focus with the aim of doing more to help you generate sales. Technical Services and Research contribute on this, with an article looking at the protection opportunities in the rental market – an underserved market at the current time. We also take a look at the role of the Network Focus Group – the voice of the membership who help us develop long term strategies for the growth of Tenet and you, our customers. You can read more on this, including testimonials from members, on page 10. Supplement enclosed with this issue With this edition we are including ‘Fund Spotlight’. This publication provides a dedicated medium for fund managers to showcase their products and services to ensure you are up to date with all the latest news and information in the fund management sector. Finally… In addition to our regular events article, where all activities have moved online at the current time, we also promote the marketing toolkit. The toolkit ensures you have access to a wide range of materials providing development opportunities and also includes new client-facing information sheets to help you keep in touch with people when they need it most. Take a look at page 12. I hope you find connected informative and useful and as always let me know if you want me to include anything else in future issues. You can email me: email@example.com Best wishes Sara J Healey Marketing Consultant
6 T enet Online Events Programme 2020
We are pleased to still be able to support your development through our online events programme, offering the same CPD that you would expect to receive at our live events. Plus you can download anything you’ve missed. 8 O pportunity knocks at the letting door! With the increasing numbers of renting households, protection needs are changing. Because someone is renting property, does not mean their protection needs should be overlooked. The rental market is an underserved area, so may represent a potentially big opportunity. 10 T he value in having a two-way conversation Take a look at the work of the Network Focus Group – where all types of firms and advice is represented, giving a voice to members to help shape the proposition, review initiatives and contribute to on-going work on policy. 12 O ur marketing toolkit could help you drive business 14 R efer a friend Our enhanced scheme means you can make money without having to wait until the firm is authorised
PROVIDER SUPPORT 15-36 Latest News and Products
WINNER Best Network
Editor Sara Healey
Published quarterly by Tenet Group Limited 5 Lister Hill, Horsforth, Leeds, LS18 5AZ
connected Magazine is for internal purposes only and is not intended as an advertisement. As a result this should not be issued in any form to clients. Not all the products in this feature are the responsibility of the Tenet Group Limited. Terms and Conditions. Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views expressed in this publication do not necessarily reflect those of the advertisers or the publishers.
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connected - a Tenet Group publication
4 – INDUSTRY UPDATE
Market reaction to COVID-19 It’s very easy when stock markets are falling for clients to become fearful and then attempt to take corrective action by changing investment strategy. Luckily, most investors that seek professional advice will have a diversified investment portfolio that has been carefully constructed to protect them from the full extent of a large drop in market values. Plus the valuable work advisers have been doing with clients over the course of their relationship is helping them stick to their long term investment strategies, with no visible ‘dash for cash’. Based on our own modelling, the impact on recurring income appears to be in the range of an 8-15% reduction. In May, the housing market took its first steps towards returning to business, as housing secretary, Robert Jenrick, published new Government advice on home moving during the coronavirus (COVID-19) outbreak. This is a first positive step towards reinvigorating the market and releasing some of the estimated £82 billion-worth of pent-up demand. These announcements do not mean that we’re back to normal by any means and we still have a long way to go before we have a fully functioning housing market. There are still a number of unanswered questions that the industry continues to wrestle with, such as how lenders are going to support people coming off mortgage payment holidays and the ongoing issue of assessing affordability for furloughed workers. Against a backdrop of negative news and a reduction in activity however, as a sector we welcome these changes with open arms. As your network, we will continue to look at how the support we provide may need to change and to see what interventions we can lobby for in order to help accelerate this market recovery. Tenet has already been able to offer some financial support to help member firms’ cashflow, by giving our members an eight week payment holiday from FCA and PII fees from April, and in relation to iO licence fees for furloughed mortgage advisers. Being a well-capitalised and resourced business means that we have been able to continue with our schedule of practice buyouts throughout the pandemic and we have still been able to complete four asset purchases during lockdown, allowing the advisers in question to retire as planned. If you think this may be of interest, please speak to your Account Manager in the first instance. Our response to COVID-19 Our own transition to remote working went very smoothly and you should hopefully be noticing very little difference in your day-to- day interactions with us. We will continue to review the Government’s latest guidance and adapt our working environment as appropriate, but for now it is business as usual, just with teams dotted around the
Lockdown and beyond A look at our experience and the regulatory horizon A lot has certainly changed since I wrote my last update in early March! Following the UK entering lockdown on 23rd March, life as we know it has been effectively put on hold and we’ve had to quickly adapt to new ways of both working and living. In this article, I’ll share our insight on how the market is reacting, as well as outline the support we have in place for your business, followed by a scan of the regulatory horizon.
Steve Jones Adviser Relationship Director
INDUSTRY UPDATE – 5
We didn’t just want to provide online support however and our series of COVID-19 live video conferences and workshops, have been very well received and have given us the opportunity to hear first-hand your own experiences of the current situation. We’ve also been working closely with our Network Focus Group (NFG) to ensure we keep our finger on the pulse (there is an article focusing on the role of the NFG on page 10) and new focus groups are being established to look at technology, communications, compliance and business development.
the coronavirus pandemic, but we have taken the decision not to go down the furlough option, instead taking the opportunity to bolster frontline teams. At the end of April, we launched our new Tenet Assistance Programme (TAP) in conjunction with Care first - an independent, leading provider of professional support services. This is a free and confidential service, funded by Tenet, for you and any other employees of your firm to use. All our COVID-19 related support can be easily accessed via our dedicated extranet area.
country! Due to the adoption of Intelligent Office, our infrastructure is also primarily cloud based, which means that core functions such as payment processing, have remained unaffected. We are actually seeing more efficiency in certain areas since lockdown, such as our schedule of virtual events, which have attracted very positive feedback. There may be elements of these new ways of working that we will retain after restrictions lift, with more of a blend of online and physical sessions. Reportedly, two fifths of advice firms have been forced to furlough staff as a result of
Risk profiling in the time of COVID-19
Reminder on DFM 10% drop notifications
COVID-19 - commitment to help existing mortgage customers On 28th April, UK Finance announced that, as a result of the COVID-19 pandemic, mortgage lenders have renewed and expanded on a cross-industry voluntary commitment to help existing mortgage customers easily switch to a new deal when they reach the end of their term. This includes borrowers who have been granted a payment holiday or have been furloughed. As a result of the pandemic however, many more consumers may be vulnerable, so it is vitally important that they explore their options. Whilst a product transfer may seem the most straightforward option, we are underlining the message, via our membership of industry bodies such as the Association of Mortgage Intermediaries (AMI), that consumers should talk to a mortgage broker, to assess individual circumstances. With around one million customers expected to reach the end of their fixed rate deal between now and the end of 2020, this clearly highlights the need for advisers to have an effective client contact strategy in place. To finish, I hope when I next write this update in the Autumn, that normal service and business levels will have largely resumed. I think we’ll in fact be looking at a new normal, which will retain some of the positive developments from the past months and could see the release of some of the pent up demand currently in the market. Have you benefited from any efficiencies from the enforced remote working and are you looking to blend the way you interact with your clients in future as a result? We’ve certainly had our eyes opened at Tenet to different ways of working – the positive reaction to our online events schedule being a key example. There will always be a place for actual physical events and interactions but there are certainly some great efficiencies to be gained from embracing technology for the right tasks.
An important part of a client’s annual review is conducting a new risk profile, to check that their attitude to risk hasn’t changed. Normally there might be small variations every few years, but what do you do when your client’s attitude changes dramatically in the midst of a global pandemic-triggered stock market correction? Advice from our Technical Services and Research team is that the conversation with the client is critical. We recommend setting the scene by discussing the below points before completing a new risk profiling questionnaire: Remind them about the original risk profiling process • Using descriptive language will help them go back in their memory to the place they were when they completed the risk profiling questionnaire • Talk through max drawdown and the capacity for loss that they agreed on Discuss the goal that they were working towards • What was it and when? • Are they still on track to achieve it? Hopefully, the financial plan was built to withstand short term market fluctuations and reminding a client of this can bring reassurance. The above should help to get the client in the right mindset to complete a new risk profile questionnaire, without reacting to short-term panic brought on by the present situation. It’s important to remember that moving to a lower ATR will change the strategic asset allocation, therefore ‘locking in’ the loss by lowering the chance of gains. Staying invested at the current ATR, however, will give much more chance for the client’s portfolio to recover from the COVID-19 related market fall. If the client is still adamant that they want to lower their risk profile considerably, ultimately this is their decision, however it is best practice to document that you have had the above conversation and the dangers of lowering the risk profile in relation to achieving their goals.
The FCA confirmed at the start of April they were temporarily relaxing the rules surrounding notifying clients of a 10% drop in investments held with a Discretionary Investment Manager (DIM), in comparison to the value at their last periodic statement, and for each subsequent 10% drop thereafter. The FCA have confirmed they will not take enforcement action where a firm: • Has issued at least one notification to retail clients within a current reporting period, indicating their portfolio has decreased in value by at least 10%; and • Subsequently provides general updates through its website, other public channels (such as social media) and/or generic, non-personalised client communications. These communications should update clients on market conditions, explain how clients can check their portfolio value and invite clients to contact the firm if they wish; or • Chooses to cease providing 10% depreciation reports for any professional clients. The relaxation of the rules will apply for six months until 1st October 2020. Further guidance and support is detailed in our TS&R DIM Portfolio 10% Drop Update. DB Transfers – deferment on the proposed contingent charging ban The publication of the FCA’s final rules in this area have been deferred until the end of the year due to the pandemic. If introduced, the ban on contingent charging for DB pension transfer advice means that advisers will be required to have the same method for calculating the fee, regardless of whether or not a transfer is recommended or arranged. Pension scheme trustees are also warning members about the risks of transferring out of their defined benefit scheme amid the COVID-19 crisis. Trustees have been asked by the Pensions Regulator to send a letter warning to DB members looking to move retirement funds, urging them to consider the decision carefully.
6 – EVENTS UPDATE
Tenet Online Events Programme 2020
As you are aware, due to current circumstances, we are unable to host our events at venues across the country, however, we will be bringing all of our events, scheduled to take place during this time, to you online.
SPECIALIST INVESTMENT WORKSHOPS ONLINE – Available on-demand These events focus on specialist investments and the value they can add to your business. Tenet will utilise the expertise of providers and fund managers, to create a valuable event; giving key industry insights, technical guidance and sales support. The purpose of these events is to provide a higher level of education, through the use of case studies and planning scenarios to provide you with a greater understanding of each product and a proposition’s place in the market. Length of Sessions: 30 minute structured CPD sessions and 5 minute elevator pitches
Length of Sessions: Fifteen minute unstructured CPD sessions from our lender partners, and 30 minute structured CPD sessions from Tenet adviser training and senior management Total CPD Available: 1 hour & 45 minutes unstructured & 1 hour structured Access Lend One Online events: http://webinars.tenetgroup.co.uk/lend-one-OD INVEST BUSINESS FOCUS EVENTS ONLINE – Available on-demand These events focus on investments and pensions, providing you with key updates on the market and the industry as a whole, including product development. The events are designed to meet advisers’ development needs and provide a valuable insight into the current markets. Length of Sessions: 30 minute structured CPD sessions and 5 minute elevator pitches Total CPD Available: 5 hours structured & 50 minutes unstructured Access Invest Business Focus Events Online: http://webinars.tenetgroup.co.uk/ BFE-Invest-1 LEND BUSINESS FOCUS EVENTS ONLINE – Available on-demand These events focus on mortgages and lending, providing you with key updates on the market and the industry as a whole, including product development. The events are designed to meet advisers’ development needs and provide a valuable insight into the current markets. Length of Sessions: 30 minute unstructured CPD sessions Total CPD Available: 3 hours unstructured Access Lend Business Focus Events Online: http://webinars.tenetgroup.co.uk/ BFE-Lend-1/register
We are pleased to still be able to support your development through these online events offering the same CPD that you would
expect to receive at our live events. Our online event programme includes
investment, mortgage and protection events. Our events programme moved online on 21st April, and, if you didn’t manage to view any of the online events live, those that have already taken place are now available to view on-demand, at any time. If you have a Focus Progress account, reflective statement documents can be downloaded from the online event pages, completed, and returned to events@ tenetgroup.co.uk. The events team will upload this, and allocate your CPD time, to your Focus Progress account. We have also re-vamped our Tenet Events App, to allow you to complete your reflective statement here.
Total CPD Available: 3 hours and 30 minutes structured & 35 minutes unstructured
Access Specialist Investment Workshops Online: http://webinars.tenetgroup.co.uk/ specialist-Investment-1 PROTECTION SEMINARS ONLINE These events will focus on the protection market. With Tenet and the industries focus in this area, they are designed to meet advisers’ development needs and provide a valuable insight into this market. All of the sessions at these events will offer IDD CPD. Our Provider partners will also look at other ways you can obtain further IDD CPD. Length of Sessions: A mixture of 30 minute, 15 minute and 5 minute IDD CPD sessions Total CPD Available: 2 hours and 35 minutes IDD CPD Access Protection Seminars Online: http://webinars.tenetgroup.co.uk/protection- seminar
INVEST ONE ONLINE – Available on-demand
These events focus on investments and pensions. The events are designed to meet advisers’ development needs and provide a valuable insight into the current markets. They will offer a variety of important information from a wide range of provider partners, Tenet’s Senior Management and Tenet Adviser Training. Length of Sessions: A mixture of 30 minute structured CPD sessions and 5 minute elevator pitches Total CPD Available: 4 hours and 30 minutes structured CPD & 45 minutes unstructured Access Invest One Online events: http://webinars.tenetgroup.co.uk/invest- one-2020 LEND ONE ONLINE – Available on-demand These events focus on mortgages and lending. They are designed to meet advisers’ development needs and provide a valuable insight into the growing lending market. The events will include a variety of niche and highstreet lenders, packagers and other providers who can help you develop further business opportunities. They will offer a variety of important information from a wide range of lender partners, Tenet’s senior management and Tenet adviser training.
BOOK YOUR PLACE TODAY You can book our events online – simply visit: https://events.tenetgroup.co.uk/ADP2020 If you have any queries, please call the events team on 0113 239 0011, extn. 8132 or email firstname.lastname@example.org
EVENTS UPDATE – 7
CPD WEBINARS - WEBINARS AVAILABLE TO WATCH ON-DEMAND Get your 30 minutes of CPD for each webinar you view! Starting in February, Tenet host a series of 10 webinars on the morning of the last Friday of every month with a single Provider, Fund Manager or Lender which you can view from the comfort of your home or office. You will have the opportunity to view the webinar and interact with the speakers, asking any questions you may have. So if you need to top up your CPD, take a look at the webinars that are available. All you need is a device to view it on and your headphones!
NO 1: Bank of Ireland ‘Serving the complex customer’ Presented by Lauren Wiles, National Account Manager on 28th February 2020 What the webinar covers…
NO 3: LV= - ‘Change is the only constant: Are you generation future-proof?’ Presented by Marcus Primhak, Business Protection Product Manager on 24th April 2020 What the webinar covers… Baby Boomers, Millennials, Generations X and Z. The descriptions have changed, but so has the whole financial landscape. Do we understand the new groupings, along with their aspirations, needs and behaviours? More importantly, what are the implications for providers and advisers in responding to this new reality? Things will certainly change for product design and engaging with and servicing clients’ needs. http://webinars.tenetgroup.co.uk/webinar-3-2020 WEBINARS COMING SOON.. We recommend registering for all the webinars, then opt out as and when, if you are not available or the content is not relevant. Date Provider 26/06/2020 Zurich 31/07/2020 The Exeter
The typical mortgage customer is changing. Lenders are seeing more and more cases of complex income, such as contractors, professionals and self-employed workers that may not work a standard 9-5 role. This webinar will take a look at the 2020 landscape and how lenders, especially Bank of Ireland UK, can help with this changing market. http://webinars.tenetgroup.co.uk/webinar-1-2020
NO 2: Just - ‘Technological Developments – A new approach to retirement income’ Presented by Karl Steadman, Retirement & Later Life Specialist on 27th March 2020 What the webinar covers… The combination of changing advice models has led to greater adoption of technology and platforms. Meanwhile, freedom and choice has led to a more scientific view of retirement income. What does all of this mean for the way guarantees are put in place and the interaction with other funds and assets? http://webinars.tenetgroup.co.uk/webinar-2-2020
28/08/2020 Unum 25/09/2020 Vitality 30/10/2020 Precise Mortgages
To register for any of these webinars visit: https://events.tenetgroup.co.uk/tenetcpdwebinars2020
8 – SPECIAL FOCUS
Opportunity knocks at the letting door! Protecting an underserved renting market
Financial protection discussions don’t normally crop up unless triggered by a life event. Research from Sainsbury’s Bank revealed that buying a house is the main reason people decide to take out protection, with 34% of those surveyed citing this as the main reason 1 . Whilst it’s great that this type of life event leads to people thinking about their protection needs, this trigger moment may not ever be sparked for some. There are many adults who openly acknowledge the likelihood of them ever owning a property will only occur upon the death of a family member and the inheritance that could be left to them. As such, these households may only ever own a property much later on in life, or in many cases, will never be homeowners at all.
Research from Legal & General highlights that by 2025 50% of adults under the age of 40 are expected to rent privately. The same research study also indicates that by 2023 nearly a quarter of UK households will be made up of those who are renting their home 2 . This increase is also supported by the latest data from the Office for National Statistics which details that ‘the number of households in the private rented sector in the UK increased from 2.8 million in 2007 to 4.5 million in 2017, an increase of 1.7 million (63%) households’ 3 . Just because someone is renting property does not mean their protection needs should be overlooked. Those who rent their home still shoulder all the responsibilities a homeowner will face, i.e. utilities, groceries, childcare, commuting costs etc.; the only difference being a mortgage payment is replaced by a rent payment. As the research conducted by Sainsbury’s bank has illustrated, the vital nudge of becoming a property owner and assessing protection needs may not ever occur, so without this prompt, families who are renting are open to greater vulnerability if unforeseen circumstances occur.
Whilst some of those renting will be without financial dependants and therefore see no need to commit to additional insurance outgoings, the number of households renting privately with children has risen by almost 800,000 to nearly 1.6 million over the past 10 years 4 . These families are an underserved market in regards to protection, but provider products do not exclude them from taking out protection policies. Some providers have recognised the potential to reach out to these types of consumers, and have started to offer products specifically designed to insure clients who rent their home. These protection offerings acknowledge the more fluid circumstances that renters may find themselves in, and the potential for more frequent amendments to cover, such as rental increases. In a different set up to most life insurance policies, renter specific products do not provide a lump sum payment upon claim, instead provide a regular monthly benefit in the event of a client’s death during the term of the plan. This payment can be used by the surviving family to help cover rent payments or help with everyday living expenses.
SPECIAL FOCUS – 9
This type of cover is a similar concept to Family Income Benefit, however the key difference is the increased level of guaranteed insurability. The guaranteed insurability element includes a specific rental- based option which allows a client to increase their sum assured in the event their rent were to increase, or if they move properties. It offers more flexibility as to the number of amendments, and the increases to a sum assured without additional underwriting. It is worth noting that products do not need to be rental specific, and standard protection products can still be used to protect clients, but perhaps one of the main barriers in opening up these types of discussions is purely lack of opportunity. With growing numbers of renters, letting agents are well placed to be prime introducers to your business, and can facilitate much needed conversations with your firm for those entering into a rental commitment. Introducer agreements with letting agents could be a good way to increase your business, and be beneficial for both your firm and the letting agency. Letting agencies will not only transact with new customers setting up new tenancies, but will have a back book of existing tenants who will review their tenancy agreements annually. This is, in fact,
a distinct benefit for clients who are renting, as this renewal of a tenancy agreement can serve as a good reminder to check their existing cover remains suitable for any life changes, such as additions to the family, job changes etc. With the increasing numbers of renting households, protection needs are changing. In seeking out opportunities to engage in discussion not just with mortgage borrowers and homeowners, but those who have a need to protect their household regardless of property ownership, your business will grow, whilst helping to provide cover for clients who had never considered protection before.
1.Life insurance cover gap revealed for UK renters - https://www.about.sainsburys.co.uk/news/latest- news/2019/120619jjw 2.Legal & General - https://www.legalandgeneral.com/ adviser/protection/rental-protection/ 3.Office for National Statistics - https://www.ons. gov.uk/economy/inflationandpriceindices/articles/ ukprivaterentedsector/2018 4.Renters far less protected than homeowners despite financial worries - https://www.covermagazine.co.uk/ news/3080751/renters-protected-homeowners- despite-financial-insecurity
Alicia Walsh Technical Services & Research Consultant
If you would like further information on introducer
agreements with external firms, visit Tenet’s extranet compliance support pages for further details, or telephone Tenet compliance team on 0113 239 0011. The Technical Services & Research team are always on hand to answer any questions you have about anything technical, so feel free to give us a call on 0113 239 0011, then press 2, then 2 again, or email email@example.com.
10 – SPECIAL FEATURE
The value in having a two-way conversation The network focus group and Tenet
For a number of years Tenet senior management have been meeting with TenetConnect’s network focus group (NFG) on a regular basis. The NFG is comprised of principals of network firms who typically serve a 2-3 year tenure, although many do stay on longer. The group and senior management meet on a regular basis some 2-3 times per year, with the clear understanding of the value in two-way conversation.
SPECIAL FEATURE – 11
And specifically, relating to the Covid-19 Pandemic: • Introduction of CEO video calls to enable Senior Management to provide a medium for updates about Tenet’s response to the pandemic, ‘state of the nation’ updates and the opportunity to ask questions • Assisted members with cash flow – we announced that from 6th April, we will not collect any FCA or PII fees for a period of eight weeks • iO fee support for mortgage member furloughed staff • Extra support while remote working – online CPD for all of our events • Guidance on annual reviews • Increased member communications • Increased marketing support – Coronavirus client information sheets, Social media posts Tenet’s management team has made a commitment to ensure it understands and reacts to network focus group feedback and recommendations, in order to help refine and improve the overall Tenet proposition in line with the expectations of our membership. Who are the current representatives? • Dean Aspinall • Andy Hiatt • Colin Baldock • Mike Metcalf • Tony Clements • Martin Rivers • Caroline Cochrane • Colin Robinson • Jeremy Freeman • Alan Sensicall • Chris Hawkins • Mark Thomas
Each ‘all-day meeting’ is designed to provide a forum to enable input into the overall proposition and to assist communication between the Tenet management team and the wider membership base. They provide an opportunity for conversation with Tenet about what firms need, what Tenet can do better and act as a barometer of the network viewpoint. The current members represent a broad geographical spread, differing business models and specialisms incorporating sole traders to multi RI practices, from hi-tech to low- tech businesses – a real cross- section. Recent events have seen the NFG meetings move to a ‘virtual’ format and this will inevitably become a more permanent feature in the future. What are the benefits? The group provide input to help shape the proposition, provide ideas and feedback, highlight how initiatives may affect business, both pre and post launch and contribute to on-going work on policy. Put another way they are the voice of the membership and help us develop long term strategies for the growth of Tenet and you, our customers. More recently we have also created some small focus groups designed to facilitate more detailed dialogue around specific subjects such as the DB market. Achievements and Outcomes Over the years the input from the NFG has been extremely useful in helping Tenet shape its thinking in relation to the support members need. It is also a very useful forum for the practitioners to share views and ideas between themselves the outcome of which allows Tenet to prioritise current and future thinking. The group has provided input into technology development, the DB market, marketing support, communications, policy development, compliance delivery and many others.
“I was delighted to be asked to join the NFG because it enabled me to develop both my business and personal standards with the very best practitioners. It also enables us to share our experience and have discussions directly with the board of Tenet and the rest of our great network of operators. Having such great open channels of working together closely produces much faster change and development.” Andy Hiatt, Principal, Hiatt Financial Ltd Here are a few comments from representative members about being a part of the NFG:
“I was surprised and flattered to be invited to join the NFG, having wondered from the outside what it was all about. I’ve always believed that if you want something changing you should do it from the inside and this is exactly what the NFG offers. “Meetings are held with the Senior Management of Tenet, engaging with and listening to how their directives, ideas and policies affect us and our/ member businesses, on the shop floor. We then have opportunity to feedback with our collegial considerations, to maintain and satisfy the overarching requirement of compliance with the regulations, but trying to make the journey as efficient as possible for the member. “It’s a collaborative symbiosis, the benefits of which we hope are shared with and felt by the membership - our sole motivation. The recent separation into ‘Focus Groups’ to look at things such as IT and DB Transfers is a huge step forward, enabling those NFG members involved to hone in on particular topics and work with Tenet, on a more frequent basis than the meetings, to drill down to better, satisfactory outcomes for all.” Colin Robinson, Managing Director, Robinson Financial Solutions Ltd
“I first joined the NFG a number of years ago. I was a bit curious, a group of Connect members who would meet regularly with the Tenet board, become involved in initiatives and whose opinions were sought on Tenet policy and how it was presented to members was new to me. I wondered if it was only there to provide the appearance of engagement – how wrong I was! “The meetings probably last around five hours and are held at Tenet. We have several presentations by directors on the current projects and any proposed ones, but I think one of the liveliest parts of the meetings and where the NFG is shown in its best light is probably NFG action points. We are invited to suggest agenda items prior to the meeting and these are considered with the same degree of attention as the formal presentations. No matter the agenda point, it is given due thought and I have seen many of these points evolve into Tenet policy over the years. “Most recently we were invited to consider what help could be given to members during the current difficult working conditions and I am happy to say that a number of our recommendations are now policy and others are being considered. “I like to think that the NFG members reflect the greater Tenet Connect membership, all types of firms and advice is represented, and that it gives a voice to members where it is most effective.” Caroline Cochrane, Partner, Crandles and Co LLP
As members leave, or finish their term, new opportunities arise. If you would like to register your interest in being involved with the NFG in the future (or one of the sub groups), please let us know. Simply contact your Account Manager
12 – MARKETING SUPPORT
Our marketing toolkit could help you drive business
If you’re looking to grow your business by recruiting new clients, or stay in regular contact with your existing clients, then a wide range of support is available. More and more advisers have recognised the benefit of using the marketing toolkit as the range of items is extensive and helps across a number of business areas. It includes leaflets, posters, brochures, press adverts, websites and letter templates to name just a few. Most of the support is available free of charge (you just pay for print) and a key benefit is that we streamline compliance processes by pre-approving most of the items for you. We can also add your logo and contact details for you if you wish. This means you can take the marketing support away and use it straight away. Support available • Brochure and folder templates • Posters, leaflets and press adverts across a wide range of themes/ product areas • ISA support items for the countdown to the tax year end and start of the new tax year • Introducer support • Letter templates • Protection, Mortgage and Equity Release Guides • Consumer leaflets for you to use with your clients to explain the support and backing you receive from Tenet.
CORONAVIRUS SUPPORT Client-facing information sheets We have developed a number of client-facing information sheets to help you keep in touch with people when they need it most. Take a look at the range, all of which can be branded with your logo and contact details and used straight away.
[company logo here]
[company logo here]
There is no doubt that we are currently living in uncertain and unprecedented times. This has naturally created feelings of anxiety for many people. It might seem like there is much to worry about at the moment, but how concerned should investors be about the value of their holdings? The news reports frequently mention the global economic impact and turbulent days on the stock markets but this does not necessarily translate into doom and gloom for investors. It is very easy when stock markets are falling to become fearful and then attempt to take corrective action by changing investment strategy. All too often though, such hasty decisions, driven by nervousness, will turn out to be poor decisions that are costly in the longer term. Within this update, we look at the current impact of the COVID-19 crisis on the stock market and look closely at howmarkets have behaved in other periods of downturn. Most investors that seek professional advice will have a diversified investment portfolio that has been carefully constructed to protect them from the full extent of a large drop in market values. The benefits of diversification in the current environment are also explored. The chart below shows the FTSE-100 Index from 1st February 2020 to 27th April 2020. Pandemics and Bear Markets Making sense of investing during difficult times
Market update on the impact of Coronavirus (Covid-19)
Themarkets started to turn in late February, with the growing fears around the economic impact of the spread of the coronavirus (COVID-19). On 24th February, the FTSE 100 closed down c3.5%. But this was only the beginning. We have since seen the FTSE 100 drop by 24% (in the three months to the end of March 2020*), sterling hit a 35 year low and oil prices plummet. Although this looks similar to the financial crisis of 2008, the economy today is very different from that period. Banks are in a stable position and can afford to lend and the Government is ensuring businesses and individuals are supported throughout this period with various business loans and job retention schemes. But what does this mean for you and your investments, protection and mortgage? Timing of Investments The impact of this on some clients’ portfolios has been the triggering of a 10% drop notification from discretionary investment managers. This is a new requirement as a result of regulation put into place in December 2018, where if a client’s discretionary managed portfolio has dropped by 10% or more since the last quarterly valuation, then affected clients must be notified. The intention of this is not to cause panic but simply to inform. The discretionarymanagers have the expertise anddiscretion toposition a portfolio tomove tomore defensive assets, with the aimof protecting any further falls. Investors are reminded not to make knee-jerk reactions and to sell out of investments at this time of market turbulence. By doing so, you could realise losses in your portfolios and when markets start to rise again, you could miss out on those early gains. It is impossible to perfectly time the market and therefore by selling out, there is a real risk of not being able to get reinvested at the right time. There have been a number of occasions in recent history where markets have suffered steep falls. These include the Dot Com bust in 2000 and the global banking crisis in 2008. In all of these previous occasions, the market recovered losses within a relatively short period of time. Investors prepared to take a long-term view should avoid being tempted to delay making new investment decisions. Consideration should still be made to undertaking planned investment top-ups and in particular, utilising unused ISA allowances. It may seem counter-intuitive to be
exposing newmoney to the markets at a time when everybody is talking about investment losses, but a well-managed diversified investment portfolio is likely to deliver returns in line with expectations over the longer-term, regardless of what the markets are doing today. Diversification means not putting all your eggs in one basket and can dramatically help to reduce investment risk. Ensuring your portfolio is not overly exposed to equities for example, may reduce the full impact of a market downturn. Diversification by region is another important consideration, as some countries may fare better than others in reaction to the COVID-19 outbreak. Experienced investorsmay even view this as a buying opportunity. Phased investment may be a consideration, where capital can be invested in smaller equal instalments over a fixed timeperiod. This strategy couldhelpmitigate the risk of timing themarkets, but it is important to stick to the planned strategy. Protection The pandemic obviously raises the morbid question of what will happen to me and my family if I were to get ill or even die? Would you be able to sustain your current level of income or would your family be provided for in the event of your death? If you have an existing protection policy then it is worthwhile checking what cover you currently have in place. If these are old policies, dust off that paperwork and give your financial adviser a call for a review. If you are concerned about the ongoing affordability of your protection policy, then please do not cancel this policy or stop paying premiums to make sure that you do not place yourself in an unprotected position . It is important that you speak to your adviser, as there may be other options available to you such as taking a premium holiday, or reducing the benefit for example. It is nigh on impossible to reinstate a policy once it has been cancelled, so this should not be the first action that you take. You could lose valuable benefits from these policies, which may cost substantially more to replace in today’s market. If you do not have any life cover, critical illness or income protection in place then now is the perfect time to ensure you protect you and your family. Contact your financial adviser for a chat about your protection needs. Protection providers are still offering products at this time which could be suitable for your needs and shouldn’t cost you any more than before COVID-19 was amongst us.
10 Feb 31 Jan n A - FTSE 100 in GB [-19.75%] Source: FE Analytics 28/04/2020
18 Feb 26 Feb 05Mar
31/01/2020 - 27/04/2020 Data from FE fundinfo 2020
The downward trend starts mid-February (there is a fall of 1.6% on Valentine’s Day). The current low point, an index value of 4993, was reached on 23rd March. This represents a total fall from the mid-February levels of around 33.72%. Further falls are certainly possible and much will depend on the ability of governments to ease lockdowns without a second wave of COVID-19 infections emerging, and the true extent of the economic damage that will eventually become apparent. However, for now this 33.72% figure represents a known impact of COVID-19 on the FTSE-100. Incidentally, whilst the market is naturally quite volatile and has generally been moving sideways for the past couple of weeks, growth in the FTSE since 23rd March has been in the region of 17%. As is apparent on the chart, any decisions made in mid-March to have sold out of investments in response to continued market falls would have thus so far proved to have been poor decisions. Investors would have missed out on the potential of up to 17% growth.
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Market update on the impact of Coronavirus (Covid-19)
Coronavirus – The Impact on Mortgages and Property Purchases
not overly exposed to equities for example, may reduce the full impact of a market downturn. Diversification by region is another important consideration, as some countries may fare better than others in reaction to the COVID-19 outbreak. Experienced investorsmay even view this as a buying opportunity. Phased investment may be a consideration, where capital can be invested in smaller equal instalments over a fixed timeperiod. This strategy couldhelpmitigate the risk of timing themarkets, but it is important to stick to the planned strategy. Protection The pandemic obviously raises themorbid question of what will happen tome andmy family if I were to get ill or even die?Would you be able to sustain your current level of income or would your family be provided for in the event of your death? If you have an existing protection policy then it is worthwhile checkingwhat cover you currently have in place. If these are old policies, dust off that paperwork and give your financial adviser a call for a review. If you are concerned about the ongoing affordability of your protection policy, then please do not cancel this policy or stop paying premiums tomake sure that you do not place yourself in an unprotected position . It is important that you speak to your adviser, as theremay be other options available to you such as taking a premiumholiday, or reducing the benefit for example. It is nigh on impossible to reinstate a policy once it has been cancelled, so this should not be the first action that you take. You could lose valuable benefits from these policies, whichmay cost substantiallymore to replace in today’smarket. If youdonot have any life cover, critical illness or incomeprotection inplace then now is theperfect time toensure youprotect you and your family. Contact your financial adviser for a chat about your protectionneeds. Protectionproviders are still offering products at this timewhich couldbe suitable for your needs and shouldn’t cost you anymore thanbeforeCOVID-19was amongst us.
Themarkets started to turn in late February, with the growing fears around the economic impact of the spread of the coronavirus (COVID-19). On 24th February, the FTSE 100 closed down c3.5%. But this was only the beginning. We have since seen the FTSE 100 drop by 24% (in the three months to the end of March 2020*), sterling hit a 35 year low and oil prices plummet. Although this looks similar to the financial crisis of 2008, the economy today is very different from that period. Banks are in a stable position and can afford to lend and the Government is ensuring businesses and individuals are supported throughout this period with various business loans and job retention schemes. But what does this mean for you and your investments, protection and mortgage? Timing of Investments The impact of this on some clients’ portfolios has been the triggering of a 10% drop notification from discretionary investment managers. This is a new requirement as a result of regulation put into place in December 2018, where if a client’s discretionary managed portfolio has dropped by 10% or more since the last quarterly valuation, then affected clients must be notified. The intention of this is not to cause panic but simply to inform. The discretionarymanagers have the expertise anddiscretion toposition a portfolio tomove tomore defensive assets, with the aimof protecting any further falls. Investors are reminded not to make knee-jerk reactions and to sell out of investments at this time of market turbulence. By doing so, you could realise losses in your portfolios and when markets start to rise again, you could miss out on those early gains. It is impossible to perfectly time the market and therefore by selling out, there is a real risk of not being able to get reinvested at the right time. There have been a number of occasions in recent history where markets have suffered steep falls. These include the Dot Com bust in 2000 and the global banking crisis in 2008. In all of these previous occasions, the market recovered losses within a relatively short period of time. Investors prepared to take a long-term view should avoid being tempted to delay making new investment decisions. Consideration should still be made to undertaking planned investment top-ups and in particular, utilising unused ISA allowances. It may seem counter-intuitive to be exposing newmoney to the markets at a time when everybody is talking about investment losses, but a well-managed diversified investment portfolio is likely to deliver returns in line with expectations over the longer-term, regardless of what the markets are doing today. Diversification means not putting all your eggs in one basket and can dramatically help to reduce investment risk. Ensuring your portfolio is
impartial support to anyone concerned about financial difficulty. The method to apply for a mortgage payment holiday varies from lender to lender. Owing to the high volume of calls, it is recommended that you check your mortgage provider’s website for further instruction before telephoning. To avoid high telephone call volumes, some mortgage providers have set up an online application form for customers who wish to request a payment holiday. If you are in financial difficulty, it is important you do not simply cancel your monthly mortgage direct debit without contacting your mortgage provider as this could have a detrimental impact on your future credit history. One thing that is key to bear in mind is to consider when your current mortgage deal may end. If your mortgage deal is ending soon, it is important to speak to your mortgage provider before requesting a payment holiday as some mortgage lenders will not allow you to review your deal whilst you are in a payment holiday period. This is particularly important to consider, as once your deal ends it is likely your interest rate will automatically revert to a Standard Mortgage Rate (SMR) or Standard Variable Rate (SVR). These SMR and SVR interest rates are likely to be higher, and if you are unable to review your deal until the end of your payment holiday i.e. in 3 months, the interest you will be charged will be a higher amount, and you may end up paying more overall. Mortgage Protection Payment Insurance In addition to mortgage payment holidays, it is worth checking if you hold Mortgage Payment Protection Insurance (MPPI). This is an insurance policy which provides monetary support to pay your mortgage if you are off work for a long period of time, as a result of illness, or in some circumstances, through unemployment. These types of policies will typically require you to be off work for at least 30 days before your claim can be submitted, but it’s worth checking to confirm if you have cover and what your cover provides. Remortgaging or Switching Your Deal As mortgage interest rates have dropped, remortgaging your home to a new provider could be a good opportunity to save money. It is worth noting however that some mortgage providers are now limiting the amount a customer can borrow and in some cases, not taking new mortgage business at all in the current climate.
With the impact of Coronavirus affecting almost every industry, mortgage applications are no exception. Mortgage providers are still working hard to help applicants, but naturally therewill be some disruption. This guidance document aims to provide some additional information on the impact the current situation has on any existing mortgages, as well as highlighting some key considerations if you are in the process of applying for a mortgage. Interest Rates The Bank of England base rate has dropped to the lowest in its history, which means that mortgage interest rates will also reduce. If you have a tracker rate mortgage, then the rate you are charged will also reduce because the interest rate you are charged tracks the Bank of England base rate. In this scenario, your mortgage provider will be writing to you in due course, to confirm how this will affect your monthly mortgage payment. Even if your mortgage is not deemed a ‘tracker’ mortgage, you may be on a variable deal. Although variable deals do not specifically track a base rate, variable deal interest rates are set by your mortgage provider, and can fluctuate in line with market conditions. If your mortgage is on a Standard Mortgage Rate (SMR) or Standard Variable Rate (SVR) then it is likely that your lender may reduce your interest rate moving forward and will write to you shortly to confirm how this will affect your monthly mortgage payment. Mortgage Payment Holidays In line with the UK Government announcements to assist mortgage borrowers, mortgage providers are offering payment holidays in an effort to assist those who have been financially impacted by the Coronavirus outbreak. If you are facing financial difficulty and wish to apply for a payment holiday, most mortgage providers have requested borrowers contact them directly, as opposed to going via a broker. The Financial Conduct Authority (FCA) wants to reassure that if you request a payment holiday, there will be no impact on your credit score and that companies should not be investigating the reason for requesting the payment holiday. This guidance is specific to mortgage borrowing, therefore if you are concerned about financial difficulty linked to any other borrowing, e.g. credit cards or loans, it is recommended that you contact your credit provider to discuss how they can help you at this time. You can also contact the Money Advice Service at www.moneyadviceservice.org.uk , which provides free and
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THE VALUE OF INVESTMENTS AND INCOME FROMTHEMCAN GO DOWN. YOUMAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED. PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE. *Source: FE Analytics 06/04/2020 TT155 070420
Social Media Posts Plus, we have also produced a range of compliance approved social media posts, tailored for use in the current climate.Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36
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