Selected Issue 5

A Tenet Group Publication

Issue 5 Spring 2019

SPECIAL FEATURES Navigating the path ahead Can we help you expand your business?

REGULAR FEATURES Plan your calendar with our programme of events for 2019 Researching Specialist Tax Advantaged Investments

Navigating the path ahead

The Latest Provider Support Offering insight into market conditions and adviser opportunities

We don’t just invest money for our clients – we invest the hours, months and years of hard work it has taken to earn it. It’s not just about investing in one of our funds; it’s about investing in a belief that life is what you make it. Each of us at Invesco shares that belief and that’s what drives us – we are fully focused on delivering what truly matters to our clients – their objectives, their dreams. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

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WELCOME – 3

CONTENTS… what’s in this issue

Editor’s Foreword

4 Navigating the path ahead

Simon Broadley, Adviser Propositions Director, provides the regular update on regulatory matters taking a look at what 2019 is likely to deliver and more importantly, the opportunities the year ahead could bring.

Welcome to the Spring issue of selected As we end the first quarter of the New Year, Simon Broadley opens this issue of Selected by taking a look at what 2019 is likely to deliver and more importantly, the opportunities the year ahead could bring. Simon’s article ‘Navigating the path ahead’ highlights key changes and what support TenetSelect can offer advisers with regards to PROD, SM&CR, defined benefit transfers and cold calling. On page 7 you can get to know our new IT & Change Director, Julia Elliott. Julia joined Tenet at the start of February and will now be leading Tenet’s ongoing strategic IT delivery. Find out what elements of technology she believes are the biggest enablers for advisers. Supplement enclosed with this issue With this edition we are including our supplement – ‘Protection Insight’. This protection focused publication provides an opportunity for us to help you focus on the protection market, understand customers’ protection needs and offer suitable solutions. We hope you find this a useful addition to our publication range. Also in this issue Can we help you expand your business? Under the spotlight in this issue we focus on the Adviser Recruitment Service and our dedicated Adviser Recruitment Consultant, Austin Burrell. Austin champions helping our advisers expand their businesses, by taking the hassle and cost out of recruiting professional advisers and support staff. So could he be helping you? You can read more on this on pages 8 & 9. Finally, we include our regular event update including the date for this year’s Adviser Forum, an update on the Tenet Platform and Technical Services and Research write about specialist tax advantaged investments such as Enterprise Investment Schemes (EIS), Venture Capital Trusts (VCT) and Business Relief investments (BR) which have long been potential solutions for certain client needs. I hope you find selected an interesting and useful read, and if you want me to include anything else in future issues, don’t hesitate to get in touch – email katie.nutter@tenetgroup.co.uk

4

7 Meet our new IT & Change Director - Julia Elliott

Find out about Julia’s career, what attracted her to Tenet and what elements of technology she believes are the biggest enablers for advisers.

8 Looking to expand your business?

Take a look at our dedicated Adviser Recruitment Service – it’s free and takes the hassle out of recruiting professional advisers and support staff. 10 Researching Specialist Tax

5

Advantaged Investments Don’t let these products be a missed business opportunity. This article aims to discuss the

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suitability research considerations to help advisers approach this area with confidence. 12 Plan your calendar with our programme of events for 2019 14 The Tenet Platform - providing clarity in uncertain times

PROVIDER SUPPORT 15 – 28 Latest News and Products

20

Best wishes Katie Nutter Marketing Consultant

23

BESTNETWORK

Contacts

Editor Katie Nutter

Published quarterly by Tenet Group Limited 5 Lister Hill, Horsforth, Leeds, LS18 5AZ

selected 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.

Tel 0113 239 0011 Fax 0113 239 5322

selected - a Tenet Group publication­

4 – INDUSTRY UPDATE

As we end the first quarter of the New Year, let’s have a look at what 2019 is likely to deliver and more importantly, the opportunities the year ahead could bring. Navigating the path ahead

Simon Broadley Adviser Propositions Director

forward planning. We have published a guide therefore to help you get a handle on FCA policy in this area – essentially an ‘edited highlights’ of the FCA’s guidance along with some practical tips and a suggested template for certification purposes. The guide is aimed at core and limited scope firms, as our client research indicated that these are the regimes that most of our client firms are subject to. This can be found in the SM&CR area of the member extranet, along with other useful support. scheme advice has been firmly under the spotlight in 2018, and we don’t forsee this changing. Issues with poor practices, highlighted in particular with regard to advice to British Steel Scheme members and following on from previous supervisory work, led the FCA to the publication of two Policy Statements - PS18/6 and PS18/20. Central to these were the changes the FCA made to try to improve the quality of pension transfer advice, with the Defined Benefit Transfers Pensions advice, and in particular DB

It is certainly building up to becoming as eventful a year as we have known for the advisory market, with regulatory updates set against the omnipresent Brexit backdrop and the FCA’s final report for its Mortgage Market Study scheduled for late spring, parts of which could deliver significant change. We will welcome a new chief executive, Mark Scanlon, as Martin Greenwood steps down to retire later in the spring after 19 years with Tenet. Mark has a proven track record of building and growing businesses and moves to Tenet from his role as chief executive of the AIM-listed provider of employee and financial services, Personal Group Holdings. On the theme of change, we were also pleased to announce in February that we have signed an initial five year contract with Intelliflo for the provision of Intelligent Office to the group. PROD The FCA’s new product governance rules require all advice firms to be able to demonstrate how they match the defined

target market of an investment product or service to the needs of their clients. The regulator is now following up and FCA chief executive, Andrew Bailey, has stated that they will be checking compliance with PROD as part of MiFID2. Our Technical Services & Research team has produced a guidance bulletin therefore to support you in this area, to explain these rules and outline actions that AR firms will need. The good news is that if you are using our Tenet panel, a good amount of the work has already been done and firms with centralised investment propositions may well already be meeting many of the requirements under the rules. However, we would recommend that firms review their CIP in line with the guidance provided. The bulletin can be located in the Technical Services & Research Communications Library. SM&CR Firms need to comply with key elements of the SM&CR regime by 9th December 2019. It is important that firms understand the requirements and are prepared for their implementation, which will require some

INDUSTRY UPDATE – 5

replacement of the current transfer value analysis in favour of a requirement to undertake an appropriate pension transfer analysis (APTA), including a prescribed transfer value comparator (TVC). It appears however that things have not improved enough based on the latest findings of its multi-firm supervisory work in this area, with less than half the 154 transfers reviewed found suitable. The FCA is currently touring its workshop on DB transfers as part of its Live and Local programme, seeking to underline the key messages from those two policy statements. For firms active in this market therefore, it would not do any harm to attend and hear it from the horses’ mouth so to speak! One of the key messages the regulator is trying to communicate is ensuring that advisers understand the regulatory perimeter of the ‘triage’, which cannot take into account any of the client’s personal circumstances and should provide information and guidance. The FCA’s position remains that most people should stay in their DB scheme however and this makes it

may now face enforcement action, including fines of up to half a million pounds. From 9th January 2019, a new Government ban prohibits cold calling in relation to pensions, which is something that Tenet has actively supported. You may remember IFA Darren Cooke’s Government e-petition back in 2016, which we promoted as a group and many of our staff and advisers put their name to, along with prominent industry figures such as Ros Altmann. Although this ban certainly won’t eradicate pension fraud, it will help crack down on one of the most commonly used routes by scammers. Pension fraud can be devastating, leaving victims without the means to fund their retirement, so anything that the Government can do is to be welcomed, as well as raising the profile of the issue with consumers. Mortgage Market Study Update For those of you who conduct mortgage business, it would be remiss of me not to mention the upcoming final report from the Mortgage Market Study due at the end of spring. At an industry level and as

difficult to deliver an effective triage in an interactive situation. For this reason, we recommend conducting triage at a distance. Money Alive and Expert Pensions represent great tools for helping you meet FCA rules in this area, including CP18/20 for DB triage. The Personal Finance Society is currently working on producing a Gold Standard in this area, and advisers can sign up to this once it is released. The Work and Pensions Committee is also taking another look at contingent charging for DB pension transfer advice and firms have consequently been asked to provide data. At TenetSelect, we have a team of pension specialists who are able to complete file reviews and provide feedback on DB pension transfer cases, so please contact your Account Manager should you require further information. Cold Calling Companies that make unwanted, unsolicited phone calls to people about their pensions

6 – INDUSTRY UPDATE

active member of AMI, Tenet has been helping contribute towards ensuring that the voices of Tenet members and the wider adviser population have been actively represented and heard by the regulator, as they finalise their thoughts in this area. Of the areas in scope for the Mortgage Market Study, two in particular are likely to deliver profound change – long awaited support for ‘mortgage prisoners’ and the creation of a digital comparison tool for consumers to help find a mortgage adviser to suit their individual needs. What is unclear at this stage is both who will develop the comparison tool, and the specific criteria that it will allow consumers to search by when looking for an adviser. I am sure that a natural concern of the regulator will be to ensure that both the criteria on offer do not become overwhelming, and that they remain as objective as possible to avoid manipulation by market participants. What is almost certain is that the new FCA Directory will be fundamental to the solution finally proposed. The final risk is that without a comprehensive, compelling and sustained programme of consumer engagement, the comparison tool could quickly become a white elephant. The second key area considers how the regulator is looking to actively support the needs of consumers who have found themselves as so-called ‘mortgage prisoners’. As many as 200,000 people are thought to be in a situation where they cannot move from their existing mortgage product, many of which have reverted to SVR. What remains unclear at this stage is where liability for any subsequent default or mis-selling complaint might lie, if the regulator makes such an active intervention. I am sure this will be worked through however, and although a long-standing issue, it is encouraging to see the FCA facing into this challenge and consciously trying to free customers, who through no fault of their own, find themselves in a challenging position.

customers and the regulator. We are now in the strong position where we want to take those things more actively to market. We want to grow our core businesses and help create and share in the success of many more members and customers. To do this we need to stand out in a market that for too many is crowded and confusing. Sustained growth and success for Tenet will come from being clear who we are, what we promise and how we deliver. We need to amplify our strengths and create more obvious links between what members/customers need and the services we offer……that way both colleagues and customers will be able to easily answer the question….“why Tenet?”. To this end, we were pleased to announce in January that we have a new relationship with an external research agency, Trinity McQueen, who are supporting us with an independent review of TenetSelect and our other brands. This is to ensure that we’re offering you the best possible service today, as well as ensuring we’re fit for the future and your opinions and experience are an integral part of this. Thank you very much therefore to everyone who took part in these interviews - we really appreciate your support and will be in a position to share with you later in the year what the outcomes of this work are. Additionally, we have launched an ongoing ‘pulse survey’ to help make sure we understand how your needs are evolving and we can continue to fully support the growth of your business. We appreciate that you are probably approached by a lot of different parties for your views, but hope that you will prioritise our surveys, as they are crucial to ensure we are meeting your needs on an ongoing basis and that you’re involved in our overall plans for the future.

We’ll obviously be keenly awaiting the publication of the final report and will keep you updated on the resulting rules and policy, as well as the timelines for implementation. On the mortgage front, it’s also worth reminding you of our preferential relationship with leading sourcing software provider, Twenty7Tec, where licences can be purchased at a heavily discounted rate of £12.95 + vat per month. Twenty7Tec recently announced plans to integrate with 15 new lenders throughout 2019 via MortgageApply, which allows intermediaries to seamlessly submit and track mortgage applications and is currently live with three lenders. This signals a real appetite to engage and reach a critical mass of lender integration, adding high street names such as Santander, Barclays and Natwest. We have received lots of positive feedback on the sourcing side but we see this latest development as really significant in terms of establishing Twenty7Tec as the market leader in this space. We’ll keep you updated as the lenders come board and you will soon start to see more and more ‘Apply’ buttons appearing next to lender names on your sourcing results. Finally, at the end of March, we will be over half way through the first CPD year for IDD, so you should have logged about 8 ¾ hours out of your required 15 hours. Remember, this can be structured or unstructured and that all our Tenet events now specify the IDD CPD hours within the agenda. Our 2019 events programme is available to view on the extranet, giving you an ideal opportunity to map out your CPD requirements for the year. Redefining Tenet’s core services and propositions At Tenet we are proud of our heritage, the growth we have achieved in recent years and the positive reputation we have amongst our

So, a lot going on in this first quarter of 2019, both at Tenet at and in the wider industry. The next time I write, we will be in either a deal or no-deal Brexit world and starting to navigate the changes laid out by the Mortgage Market Study. However, rest assured, we’ll help you navigate the path ahead, as well as starting to shape our future plans based on the key themes from your feedback.

SPECIAL ANNOUNCEMENT – 7

Meet our new IT & Change Director Julia Elliott

Julia Elliott joined Tenet at the start of February as our new IT and Change Director. She was previously Financial Advice Head of Business Change and Application Development at Skipton Building Society, and will now be leading Tenet’s ongoing strategic IT delivery. We caught up with Julia to find out a bit about her career, what attracted her to Tenet and what elements of technology she believes are the biggest enablers for advisers. I’ve always had jobs that are closely linked with IT, previously in a project and operational sense and in the last ten years, working purely in IT and change roles within financial services, firstly with Engage Mutual and latterly with Skipton Building Society. During my time at Skipton, we built technology for the in-house advisers and back office, moving them from paper factfinds to a streamlined advisory process underpinned by Intelligent Office. Has your career always centred on technology?

about data and I really believe that if you have access to the right data then you can really understand your customers, which in turn enables you to offer a great service with that competitive edge. Culturally, I feel that Tenet has the right attitude to change and with its ambitious growth targets, I’m excited to see where we could all be in a few years’ time. The fact that the head office is local to me is also a bonus! Finally, tell us a bit about yourself, what do you do in your spare time? (As I mentioned), I live locally and have been based in Ilkley for 18 years. In my spare time I enjoy walking, cycling (although I totally admit to being a fair weather cyclist) and generally being outdoors. I am married to John, who is an engineer and have three daughters who are all currently studying science-based subjects at university, or ‘maxing their student loans’ as it is otherwise known! I joke that we are their personal finance portal so am holding on to the misguided belief that all this will change when they all graduate over the next year.

So you’re familiar with working with Intelliflo – why do you think they are a good partner for Tenet? Intelliflo really understands what advisers need, but more importantly, they are IT experts working in the finance world and not the other way round. Because Intelligent Office has been built by people that know technology, it’s really robust and well thought through – what you want is essentially something that works at every level and it does exactly that. They are not just a safe pair of hands, they are passionate about open architecture – their IO store for example offers huge flexibility for advisers in terms of integrations. Because of all this, I think they represent an ideal fit for Tenet’s needs. This role offered a great opportunity to oversee a large change project and I felt that with my background, I could really add value as well as be challenged. I enjoyed helping the advisers at Skipton to leverage technology and the chance to do the same within the largest independent advice group in the UK was too good to miss! It might sound a bit geeky but I’m passionate What attracted you to the role at Tenet?

8 – SPECIAL FOCUS

Looking to expand your business?

KEY BENEFITS: Role profile writing service to help you define your requirements Promotion of our vacancies on our website and professional online job boards Candidate vetting, including professional telephone screening and interviewing Assistance in completion of forms when on-boarding successful candidates Training and support for new recruits from our in-house training team

But, the thing that makes this service stand out from using a recruiter is our fees. We only charge a fee of 6% plus VAT* of the basic salary per person recruited, payable upon appointment. This is a huge saving compared to regular standard recruitment agency costs (usually around 20%), as well as freeing up your time so that you can concentrate on giving advice to your clients. For self-employed positions, we charge slightly differently on a flat fee basis. For an investment adviser the cost is £2,400 +VAT and for non-investment £1,800 +VAT. Which is still a huge saving on a standard recruiters fees. What does the service include? Austin will help you to define and develop an attractive recruitment proposition to draw a suitable calibre of candidates to your business, helping you find the right person for your vacancy. He will also arrange for the role to be advertised and will screen the best candidates to your specifications, recommending the ones which fit your needs.

If you’re looking to expand your business, let us help you take the hassle and cost out of recruiting professional advisers and support staff. Under the spotlight in this issue we focus on the Adviser Recruitment Service and our dedicated Adviser Recruitment Consultant, Austin Burrell. Austin champions helping our advisers expand their businesses, by taking the hassle and cost out of recruiting professional advisers and support staff. He will make finding a new member of your business simpler, by taking care of organising a recruitment strategy for each business consisting of writing role profiles, advertising and proactive headhunting, to even vetting the candidates on your behalf. What’s in it for your firm? Through our Adviser Recruitment Service, you will have the support of our experienced HR and recruitment specialist. Austin has significant experience in recruiting for a range of financial services, HR, compliance and administration roles and can do all the legwork for you, from advertising the role on our website and on respected, professional online job boards, through to candidate vetting and interviewing on your behalf.

To register a vacancy or to find out more about the service please don’t hesitate to contact Austin on 0113 239 5116 or email Austin.burrell@tenetgroup.co.uk

* subject to a minimum charge

SPECIAL FOCUS – 9

So – who is Austin?

Can you give us a brief history of your career to date? I had a few different jobs in my late teens/early 20s including working for Ticketmaster, Newcastle Building Society and BP. In 2006, I started working at StepChange Debt Charity as a customer service adviser and ended up staying there for over 12 years. After a couple of years on the front line I moved into the HR team, did my PG Dip in HR Management and then moved into the internal recruitment team in 2014, where I stayed until I left to join Tenet in May 2018. Why did you choose to work at Tenet? The core values. I saw posters displaying them on the walls when I came in to interview and the discussion I had with Amanda Ford, Head of Central Recruitment was based on these. It was refreshing to meet an interviewer who was genuinely interested in me as a person. I thought if these values translate into the day to day reality of being at Tenet, it will be a great place to work. How did you get into recruitment? After completing my HR diploma, I had to make a decision on whether I wanted to be a hirer or a firer. I decided hiring was more fun. Cumbria and most of my family still live there so pretty much every other weekend I’m driving up and down the A1 and A66 to spend time with them, including my 5 year old nephew and dinosaur enthusiast, Kai. If you could trade places with anyone for the day who would it be and why? Probably my whining little cat Midge. She sleeps all day, wakes up at 5.30pm just in time to be fed and fussed over and then either goes out all night or goes back to bed again. I’m not really a cat person. I’d prefer a dog, but she’s what I’ve got and I’m stuck with her. Finally, tell us an interesting fact about yourself… I used to work occasionally as a TV extra in the late 90s and can be seen lurking What are your hobbies and interests outside the office? I was born and grew up in Penrith,

in the background of episodes of ‘The Lakes’ and ‘Hetty Wainthrop Investigates’ amongst others.

10 – SPECIAL FEATURE

Why should I consider them? These products offer the potential for generous tax reliefs and investment opportunities which can complement a client’s investment strategy. • BR investments can become exempt for IHT purposes if the assets are held for at least 2 years prior to death. • VCTs can provide relief on income tax of 30% on a maximum subscription of £200,000. The returns can include tax free dividends and capital returns. • EISs can also provide income tax relief of 30% but at a higher subscription level of £1,000,000. Capital returns are tax free and there is also the options of deferring capital gains which have been crystallised. These can also support an IHT solution as the exemptions can also qualify for exempt status after 2 years. Financial planning opportunities include: •  EIS and VCT – alternatives to ISA and pensions where contributions have been maximised. •  EIS and VCT – tax efficient company cash extraction. •  EIS and BR – IHT mitigation as part of a holistic IHT strategy. What are the suitability considerations? With tax advantages normally comes higher investment risk and complexity. However, there is no need for trepidation if an adviser takes reasonable steps to ensure a client is suitable. •  Determine the client’s financial sophistication – can it be demonstrated, using hard and soft facts, that the client is reasonably able to participate in discussions and decision making in relation to the commercial risks, structures and investment strategy of these types of investments? Specialist tax advantaged investments such as Enterprise Investment Schemes (EIS), Venture Capital Trusts (VCT) and Business Relief investments (BR) have long been potential solutions for certain client needs. However there is the perception that these investments are difficult to research and to assess client suitability, meaning some advisers have elected not to engage with them. As we often see in this industry, these types of investments are arguably now moving into the mainstream. For those who do not choose to consider them, there may be missed business opportunities and potentially unsatisfactory client outcomes. This article aims to discuss the suitability research considerations to help advisers approach this area with confidence.

Researching Specialist Tax Advantaged Investments

Michael Walker Technical Services & Research Consultant

SPECIAL FEATURE – 11

client’s expectations/requirements in relation to the risk? Is the client willing and able to hold the investment for the longer term? • What time constraints exist in relation to the tax relief being sought? The time anticipated to fully invest client monies into qualifying companies can vary. • Does the client have a preference for a particular strategy or provider? The client may have previous experience of a provider or have professional or personal understanding of a sector or industry but this should be challenged where necessary. What should be on the client file? The suitability report should confirm which provider and solution is being recommended, the rationale for this decision and any objectives or preferences that have not or only partially been met. The client file should contain all the necessary material to support this decision, linking it back to the client’s needs and preferences. This would be the audit trail showing the narrative from the filtered relevant market to the selected provider. Due diligence documentation would be retained and, where a tool has been used, copies of the outcomes and information on the filters which were applied. Conclusion These investments can form a valuable part of an adviser’s financial planning armoury and for the right client an adviser can provide additional value and support. Ultimately, it could be the difference between the client receiving the right investment/advice outcome and being invested in a less appropriate solution. The Technical and Research team are available to discuss these options in more detail.

•  Ensure the client has sufficient capacity for loss – would a complete loss of capital have an impact on their ability to maintain their standard of living? •  Determine an appropriate investment amount – this would normally be a balance between the identified tax relief required, the client’s financial sophistication and the overall risk in their investment portfolio.  An adviser should avoid attempting to map specialist tax advantaged investments to a traditional risk scale. These scales are usually underpinned by an asset allocation model which may include asset and/or geographical diversification which will not be shared by these types of products. How do I approach the research? Despite the perceived complexity, the approach is similar to many other product areas. These are the main steps in the process: 1. Identify the relevant market The majority of these investments will be managed by ‘specialist’ providers. These can be identified through various websites, such as the Association of Investment Companies (AIC) for VCTs (https://www.theaic.co.uk/) or the Enterprise Investment Scheme Association (EISA) website (https://eisa.org.uk/). Additionally, third party research providers can provide independent reviews of tax advantaged investments, conducting the type of due diligence being discussed here. It is important to undertake a due diligence review of the provider to ensure you have confidence in their investment solution. Some considerations include: •  Provider Financial Stability – this could be reviewed using financial strength ratings if they are available or via a review of the provider’s accounts to assess evidence of ongoing profitability and adequate cash flow. •  Management Team – consider the relative experience and track record of the management team. Does the level of expertise and skill seem appropriate for the investment strategy and investment objectives? Does the team have a successful track record of identifying suitable companies in which to invest? •  Tax Relief Track Record – examine 2. Conduct due diligence on the appropriate providers

3. Conduct research on the investment solution

A review should also be undertaken of the investment solutions against their peers, with the following broad factors considered as part of the analysis: • Does the investment have a KIID and if so, does the client meet the definition of the intended retail client? • Consider the investment approach, including the track record and level of diversification across sectors and/or industries. • How does the product compare on costs in relation to its peers when considering the product features and objectives? • Does it offer any other relevant product features that make it more suitable for the client, such as additional insurance? • What is the planned exit strategy? What is the track record in terms of timescale and positive returns? • In the case of a VCT, does the VCT have an annual target dividend amount? If so, what is the track record? Does the VCT operate a share buyback scheme? If so, does it have an established track record and what is the discount to NAV? Ideally avoid discounting possible solutions too early in the process. A recommendation does not need to meet all requirements where it is not possible to do so and it may be necessary for a client to accept compromises on what can be achieved. As always, the research process will use the provider and product analysis in conjunction with the information gathered through the fact-find to support a client specific recommendation. The following factors may arise when considering the investment solution to recommend. • What is the target return or performance profile and how does this relate to the 4. Consider client specific requirements

DO YOU NEED FURTHER HELP OR SUPPORT? If you would like more details about how we can support your firm with research and technical enquiries, please contact your Account Manager. For those firms subscribing to our research & technical module please contact 0113 239 5317 or email tsandr@tenetgroup.co.uk

the provider’s track record of achieving and maintaining qualifying status of the investments. Have there been any instances of this being lost?

The Tenet Platform – providing clarity in uncertain times

WE KNOW THAT MARKET VOLATILITY IS AN INEVITABLE PART OF INVESTING. WHILST POLITICAL UNCERTAINTY REMAINS UNRESOLVED, WE CAN EXPECT CONTINUED VOLATILITY IN FINANCIAL MARKETS FOR SOME TIME TO COME. IT’S IMPOSSIBLE TO PREDICT WHAT WILL HAPPEN NEXT IN THE GEOPOLITICAL LANDSCAPE. INVESTING IN VOLATILE MARKETS PRESENTS ITS OWN CHALLENGES, AND OPPORTUNITIES.

Under the regulatory spotlight From a regulatory perspective, the current FCA market study on assessing investment platforms is focused on how to develop better consumer outcomes and how to offer investors value for money. Cost disclosures under MiFID II, highlight the need for transparency, providing the best outcomes for clients, and the requirement to provide an increased level of information on costs and charges. The Tenet Platform not only represents good value for money, but it enhances the adviser/client relationship, enabling you to centrally manage and service your clients, thereby enriching the overall level of service you can provide. A moment of clarity Choosing a platform with a lower charge, which still meets clients’ requirements, is a straightforward way to minimise the overall cost to the client without altering the investment strategy or reducing your ongoing service fee. This table shows the impact platform charges have on a £100k investment, when combined with a 1% fund charge and 0.75% ongoing service fee. The Tenet Platform offers a cost-effective solution that will provide benefits to both you and your clients.

In uncertain times, it’s reassuring to have elements of certainty, guarantees to rely upon, known knowns; and while you can’t control investment performance, you can control the costs associated with investments. The Tenet Platform can provide that certainty. That element of control, when everything around is a little less certain. Take control – a lightbulb moment When selecting an investment platform, prime considerations no doubt include a combination of convenience, efficiency, functionality, security, ease of use, tools, quality and cost. The Tenet Platform delivers on all these key areas, to ensure you can focus on your clients and meet every one of their requirements. Competitively priced at 0.17%, the Tenet Platform provides good value without compromising quality. By adopting a transparent, disciplined approach to costs and providing a high-quality platform solution, everyone benefits. With both clients and the regulator focusing on value for money, it makes sense to minimise the overall cost to your clients where possible.

Platform Price Comparison Table

Platform Pricing Structure

Fund OCF (1.0%)

Ongoing Fee (0.75%)

Total Annual Cost

Platform Fee

0.50% 0.45% 0.30% 0.25% 0.17%

£500 £450 £300 £250 £170

£1,000 £1,000 £1,000 £1,000 £1,000

£750 £750 £750 £750 £750

£2,250 £2,200 £2,050 £2,000 £1,920

This table is for illustrative purposes only The FCA’s final report ‘investment platforms market study’ is due in Q1 2019

To find out more about the Tenet Platform, call the Tenet Platform team on 0113 2395121 or email platform@tenetgroup.co.uk

This article is only intended for use by professional advisers.

14 – EVENTS FOCUS

Plan your calendar with our programme of events for 2019 Attending our events will provide you with an excellent insight into current markets, new legislation, new products and services. It is a chance to not only satisfy your CPD requirements, but also an opportunity to network with your colleagues, product providers and Tenet staff. All events are free of charge, so, don’t miss out - plan your calendar today.

COMING SOON… MASTERCLASS ONE – STARTING APRIL 2019 This year we will continue our exceedingly popular Masterclass events. 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, planning scenarios to provide you with a greater understanding of each product and a proposition’s place in the market. Target Audience: Investment, Pension and Protection advisers Approximate Timings: 9.00am arrival 9.30am start – 3.00pm finish CPD: Approx. 3hrs 30 minutes structured and 35 minutes unstructured To book your place on a Masterclass One visit: https://events.tenetgroup.co.uk/masterclassone2019 Date Location Venue 30/04//2019 Leeds Village Leeds South 01/05/2019 Manchester Haydock Park Racecourse 02/05/2019 Glamorgan The Vale Hotel 14/05/2019 Cumbernauld The Westerwood 16/05/2019 Belfast Stormont Hotel 21/05/2019 Southampton Hilton at the Ageas Bowl 22/05/2019 London Amba Hotel 23/05/2019 Birmingham Village Solihull

CYCLE TWO PROFESSIONAL DEVELOPMENT MEETINGS – STARTING JUNE 2019 These events are designed with the main aim to meet advisers development needs and provide valuable insight into key industry issues. The PDMs offer a variety of important information from both our provider partners and Tenet’s senior management. Target Audience: Investment, Pension and Protection advisers Timings: 8.45am arrival 9.15am start - 3.00pm finish CPD: Approx. 3hrs 30 minutes structured and 30 minutes unstructured To book your place on Cycle Two PDMs, visit: https://events.tenetgroup.co.uk/cycletwopdms2019 Date Location Venue 04/06/2019 Manchester Haydock Park Racecourse 05/06/2019 Gloucester Stonehouse Court 06/06/2019 Birmingham Village Solihull 11/06/2019 Cumbernauld The Westerwood 12/06/2019 Durham Ramside Hall 13/06/2019 Leeds Village Leeds South 18/06/2019 Belfast Stormont Hotel 25/06/2019 Maidstone Hilton Maidstone 26/06/2019 London Millennium Knightsbridge Sandy Park 03/07/2019 Southampton Hilton at the Ageas Bowl 09/07/2019 Glamorgan The Vale Hotel 10/07/2019 Nottingham Nottingham Belfry 11/07/2019 Sheffield Tankersley Manor 02/07/2019 Exeter

BOOK YOUR PLACES TODAY FOR THE WHOLE OF 2019!

CPD WEBINARS Get your 30 minutes of CPD for each webinar you view! Throughout 2019, Tenet will be hosting a series of CPD webinars which are available to view from the comfort of your home or office, at a time to suit you. 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: Virgin Money ‘Welcome to True Partnerships’

Presented by Kim Dickinson, Senior Business Development Manager on 1st March 2019 http://webinars.tenetgroup.co.uk/webinar-1-2019

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

Webinar

Link to View

29/03/2019 NatWest Intermediary Solutions 31/05/2019 Post Office for Intermediaries

http://webinars.tenetgroup.co.uk/webinar-2-2019 http://webinars.tenetgroup.co.uk/webinar-3-2019 http://webinars.tenetgroup.co.uk/webinar-4-2019 http://webinars.tenetgroup.co.uk/webinar-5-2019 http://webinars.tenetgroup.co.uk/webinar-6-2019 http://webinars.tenetgroup.co.uk/webinar-7-2019

28/06/2019 Shawbrook Bank

27/09/2019 Together 25/10/2019 The Exeter

29/11/2019 Precise Mortgages

We’re delighted to invite all advisers and support staff to our Adviser Forum, which will be held at the Queens Hotel, Leeds, on Thursday 5th December 2019 . More information for this event will be provided throughout the year, so watch this space! To register simply visit https://events.tenetgroup.co.uk/ adviserforum2019 If you have any queries, please call the events team on 0113 239 5334 or email events@tenetgroup.co.uk

DATE FOR YOUR DIARY

We don’t need to blow our own trumpet as we consistently find that others do it for us

We are proud to announce that for the 5th consecutive year our funds have been awarded a 5 Diamond Rating by Defaqto. This independent accreditation is a clear endorsement of our risk targeted funds and investment proposition.

Rated on a range of aspects including fund performance and competitiveness in other key areas, this is a clear acknowledgement of our consistency and strength.

To find out more information about Sinfonia and our funds: CALL: 0113 239 0025 | EMAIL: info@sinfonia.com | VISIT: www.sinfonia.com

Investment Manager for the IFSL Sinfonia Funds

Copies of the Prospectus and Key Investor Information Documents are available from www.ifslfunds.com or can be requested as a paper copy by calling 0845 123 1083 or writing to IFSL, Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Sinfonia is a trading style of Sinfonia Asset Management Ltd, Registered in England & Wales No. 06309491. Investment Fund Services Limited is the Authorised Corporate Director the IFSL Sinfonia OEIC. Investment Fund Services Limited is authorised and regulated by the Financial Conduct Authority. Risk Warning – The value of investments and the income from them can go down. You may not get back the original amount invested. Warning - This article is only intended for use by professional advisers

Prudential is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority.

Introducing the PruFolio Risk Managed Range – 3 investment styles, 5 risk strategies, 15 funds. 1 philosophy. Discover more at pruadviser.co.uk/prufolio Transform your client’s investment universe PruFolio This is just for UK advisers – it’s not for use with clients. The value of any investment can go down as well as up so your customer might get back less than they put in.

20 – PROVIDER SUPPORT

Andrew Tully Technical Director at Canada Life

Retirement and Pensions Outlook 2019 brings a number of changes which will affect both your clients and your businesses. Constant change isn’t new in the world of pensions and retirement, and it doesn’t look like this year will be any different.

We are starting to see the state pension age increase from 65 to 66. That process began on 6 December (affecting those born on or after 6 December 1953), and it gradually increases through 2019 and 2020 and by 6 October 2020, SPA will be 66 for men and women. Retirement Outcomes Review January finally saw further detail published by the FCA as part of its Retirement Outcomes Review work. Its Policy Statement (PS19/1) introduces changes from November 2019 to wake-up packs, retirement risk warnings and the annuity information prompt. Changes aiming to make drawdown charges clearer and easier to compare will follow in April 2020. The FCA has also launched a consultation (CP19/5) which will run until April considering default investment pathways and other rules and guidance for non- advised drawdown customers. The topical issue of final salary transfers is likely to remain in the spotlight. The FCA published new perimeter guidance on what can be covered within a triage service which came into effect in January. And, from April, updated assumptions will need to be used for revaluing benefits and calculating the assumed increases of pensions in payment.

appears to be back on board and has recently published a consultation and given the new single guidance body the job of moving the project forward. One thing seems clear – for the dashboard to work effectively there needs to be compulsion on all schemes and providers to provide data, including the Government for state pensions and public sector schemes. Building a sub-standard version which only contains some information means it is likely to become a white elephant, with running costs out of all proportion to its usefulness. And we can’t forget Brexit. With much uncertainty around the final outcome, it’s certainly not clear what impact it will have on the world of pensions. I’m sure much will develop as we move through the year. To find out more about retirement solutions from Canada Life visit www.canadalife.co.uk/adviser/ retirement MGM Advantage Life Limited, trading as Canada Life, is a subsidiary of The Canada Life Group (U.K.) Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales. Registered no. 08395855. Registered office: 6th Floor, 110 Cannon Street, London EC4N 6EU.

Lifetime allowance and automatic enrolment

A few changes accompany the start of the new tax year. The pension lifetime allowance is edging back up again to £1,055,000, and the benefit of the triple lock will see state pensions increase, with the single tier pension going up to £168.60 per week. Automatic enrolment seems to have been around for an age, but April sees the final step up in contribution levels – at least for now - with a minimum payment of 8% required. The employer must pay at least 3%, which means the maximum cost to a basic rate taxpayer will be 4%. While opt-outs have been remarkably low so far this, following quickly on the heels of last April’s increase, will be a real test of auto-enrolment. Contributions going up during a time of relatively low wage growth may well see take home pay fall for many savers, and it will be fascinating to see opt- out levels at the end of 2019. Pensions dashboard The pensions dashboard was originally due to be launched in April 2019 but the likelihood is it will be towards the end of the year, at the earliest. The Government

FOR PROFESSIONAL ADVISERS ONLY

Mouthwatering multi-asset opportunities

Premier Multi-Asset Distribution Fund Premier Multi-Asset Monthly Income Fund

Total returns 4 5yr quartile rank

Income Historic Yield Risk adjusted returns 3

Historic yield 1

Frequency

Quartile rank 2

5yr quartile rank

4.3 % 4.9 %

1 1

1 1

1 1

Income paid monthly Income paid quarterly

Premier Multi-Asset Distribution Fund

Premier Multi-Asset Monthly Income Fund

*

AA

• Past performance is not a guide to future returns and there is a risk of loss to capital • The value of shares and the income from them are not guaranteed and can go down as well as up • Full details of the fund specific risks are available in the fund prospectus and Key Investor Information Document

• Ratings and awards are not an indication, promise or guarantee of future performance of a fund or fund manager

* Premier Multi-Asset Monthly Income Fund only

0333 456 9033 premierfunds.co.uk/multiassetincome Find out more:

WINNER BestMulti-Asset FundGroupoftheYear

The Premier multi-asset range: income, growth, conservative growth and balanced solutions

For professional advisers only. Not suitable for, or to be relied on by, private or retail investors. All data sourced to Premier and based on class C income shares, unless otherwise stated. 1 The historic yield reflects distributions declared over the past twelve months as a percentage of the share price of the fund, as at 01.02.2019. The yield is not guaranteed and will fluctuate. Data and quartile rank source: FE Analytics, to 31.01.2019. 2 As at 04.02.2019. 3 Risk-adjusted returns based on Sharpe ratio, cumulativemonthly data. 4 Total returns based on a bid to bid, dividends reinvested, UK sterling basis. The Funds are in the IA Mixed Investment 20-60% shares sector. Past performance is not an indication of future returns. The value of an investment and any income generated by it can go down as well as up and there is the risk of loss to capital. The methodology and calculations used by the companies or organisations that provide the fund or fund manager awards and ratings are not verified by Premier Asset Management and we therefore are unable to accept responsibility for their accuracy. Ratings and awards should not be relied upon for making an investment decision. Morningstar Ratings do not constitute investment advice. Copyright ©2019 Morningstar. All Rights Reserved. The Defaqto 2018 Diamond Rating is based on the class C shares for the Funds. Defaqto is an independent researcher of financial products and is not authorised to provide financial advice. Premier Asset Management does not have any influence or control over the Defaqto Diamond Ratings or the methodology used to create them, or that these will not change in the future, or that Premier Asset Management will continue to use Defaqto ratings in the future. The Elite Rating™ system is proprietary to FundCalibre Ltd, but should not be taken as a recommendation. A free, English language copy of the funds’ prospectus, Key Investor Information Documents and Supplementary Information Documents are available on the Premier website. Issued by Premier Asset Management, marketing name for Premier Fund Managers Limited & Premier Portfolio Managers Limited, which are authorised and regulated by the Financial Conduct Authority. Telephone calls may be recorded for training and quality assurance purposes. 05021914973

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