Guide to Start Your Year - Issue 2


Looking ahead to the New Year


Don’t miss our Events Programme for 2020 included with this magazine

Technical Services & Research Review Find out what the team have been working on now and into the year ahead

Marketing Get your year off to the best start with our Toolkit


By Natalie Yarwood Marketing Consultant

We would like to take this opportunity to welcome you to the second issue of Guide to Start Your Year.

Also in this issue: The Outsource Marketing Department discuss why it is important to assign time to marketing your business and notes the options available to help your business prosper in the New Year. Steve Owen from Standard Life, shares the questions advisers ask most often when selecting a new platform, and explains how to get a platform that meets the needs of clients and due diligence requirements. Aberdeen Standard look into how investing can be a natural fit for long- term investors. They have found that a growing number of clients are recognising that sustainable and responsible investing is a natural fit for intergenerational financial goals.

John Chew from Canada Life reviews how the Retirement and Pensions industry continues to face a number of changes in 2020 which will affect both your clients and your business. Equity release lender more2life, look ahead to 2020 and review the challenges facing the market following a strong run up to 2019, and then the impact of Brexit on the market. If you have any feedback on this issue, please do let us know if you think we can improve the magazine going forward. Best wishes Natalie Yarwood Marketing Consultant

In this issue we reflect on what has happened in 2019, as well as look to the New Year to discuss the latest opportunities and developments on the horizon. Our specialist providers will also be offering valuable support, expertise, tools and business development ideas. We open this first edition with: Simon Broadley looks back at some of the big changes which have happened in 2019 at Tenet. For instance, Mark Scanlon taking over the reins from Martin Greenwood, plus launching Intelligent Office in September as our end-to-end business management system have contributed to 2019 being a year of change at Tenet.

In this issue

Provider Support

Tenet Update Simon Broadley gives us an overview of what’s gone on at Tenet in 2019

Just The past can future proof your advice process



Marketing How to market your business in 2019

Fidelity The rise of China’s local leaders



Technical Services & Research Review

Invesco 2020 economic outlook



Discover what the team have been up to and going forward into next year

Tenet Events 2020 is just around the corner – make a date in your diary for our first round of events

Vanguard How big is the BBB problem?



Marketing Support for the New Year Free marketing support to give your business a boost


Plus much more…



By Simon Broadley Adviser Propositions Director

In this article last year, we looked forward to what 2019 might bring and commented that no one could predict what Brexit deal, if any, we would end up with. Fast forward 12 months and not much has changed on this front! Brexit has contributed to a relatively quiet year on the regulatory front however, with much of the FCA’s focus pointed at ongoing preparations for our departure from the EU. There have been some big changes for Tenet this year however, with Mark Scanlon taking over the reins from Martin Greenwood, following his eight year tenure as chief executive. With a career of building and growing businesses underpinned by digital technology, Mark very much believes that advisers will never be replaced with technology but they will be replaced by advisers with technology. On this theme, a major milestone

this year was the launch of Intelligent Office in September as our end-to- end business management system. A change of this scale will always represent a challenge, and I wanted to again thank you all for your effort and resilience over the past months. We always knew that our system configuration would evolve from go- live, but in line with your feedback, we identified a number of key areas where we needed to fast-track our plans to help you with your day- to-day adoption of the system. Training has also been a key area where you have highlighted the need for additional support and we are currently working with those of you who want more help to transition, which has included additional face-to- face sessions at a wider selection of venues in the UK, facilitated by seven new full-time iO training consultants. Finally, matching is now up to an average of 90% across the networks, bringing us back to pre-Intelligent Office levels, but we’ll continue to support all firms to achieve these levels and beyond. We continue to enjoy the full support of our major shareholders, who have a strong desire to see the business continue to succeed and develop and to see what we can achieve as a group.

A key strand to this is our continued regional growth, via our practice buyout scheme. Our most recent acquisitions established a new hub in Nottinghamshire, following the successful establishment of hubs in Preston, Northampton, Leeds, Edinburgh and Cardiff. This supports members whose businesses present the right fit for Tenet with the ability to realise the value they have built up within their firm, at the same time as retaining a safe home for their client bank. On the opposite end of the lifecycle, we launched a successful mentor scheme for mortgage and protection advisers this year, which offers full support for trainees with CeMAP or equivalent to achieve competent adviser status. With the two intakes so far this year fully subscribed, the next one in taking place in March and we are currently recruiting for additional mortgage mentors with an eye to expanding the scheme. 2019 has been one of our best years for adviser recruitment into the group, with an average of over 30% growth in new joiners across TenetConnect, TenetLime and TenetSelect and we plan to concentrate on growing and developing these core elements of our business in 2020, which includes our fully owned national advice firm, Aspire.

We can go into 2020 in a position of strength and start concentrating on some of our new initiatives to grow your business and work with you on a more proactive basis.


and procedures. This means we can continue to offer stable premiums and our unique run off cover to members. Aside from the impact of a general election and possible Brexit, which without the aid of a crystal ball I’m unable to comment on at the point of writing, we can see some key themes for the year ahead on a regulatory front. Due early 2020 are the final rules regarding the possible ban on contingent charging for pension transfer advice. We will also see the publication of the policy statement in relation to the proposed changes to the mortgage advice and selling standards in the first quarter of the year, to address three key harms identified through the Mortgages Market Study. As a reminder, these were that the FCA’s advice rules and guidance are a barrier to the development of tools to help consumers choose and buy a mortgage, the difficulty for consumers who would like to buy a mortgage on an execution-only basis and that many consumers are overpaying for their mortgages, even when they get advice. DB pension suitability will be an ongoing FCA focus, along with the sustainability of income in retirement. There will also be regulatory focus on firms’ culture, fair treatment for vulnerable customers and value for money.

With representatives on the PIMFA Regulatory Committee and Compliance Committee and my own position serving on the AMI Board, we are not only privy to what is coming down the track, but also able to help influence future decisions and champion the role of the adviser. In summary, the latter part of 2019 has been a real transitional period for Tenet, with the adoption of a new technology solution and the changes in our policy and processes that this has driven. It’s not been as smooth as we would have hoped, especially on the payment front, where the introduction of 25 years’ worth of Tenet Advantage data into the system caused some unforeseen challenges and we are very aware of the impact this has caused. Looking forwards however, we now have over a thousand users operating our instance of Intelligent Office on a daily basis and in partnership with Intelliflo, we are determined to deliver the core system enhancements identified via your feedback as soon as possible. This means that we can go into 2020 in a position of strength and start concentrating on some of our new initiatives to grow your business and work with you more.

On the regulatory front, the SM&CR recently came into effect for solo regulated directly authorised firms, with its focus on culture and governance. We’ve been working with our TenetSelect clients since July 2018 to prepare for this, which can represent quite a significant step change in terms of documenting roles and responsibilities. Looking to 2020, we want to expand our business development support, to help you grow your firm and realise its potential. Growth in our protection business and GI is another key theme and from the New Year, we will be working with our top protection providers to enhance our offering and increase the number of protection conversations with mortgage clients. Unlike a lot of our peers, we remain open for business for DB pension transfers, but we are seeing a reduction in cases as an increasing number of the ‘at retirement’ market have already flexed their pension freedom muscles. Obtaining affordable professional indemnity insurance, especially for those who are in the DB market for example, will continue to be a challenge for many. With our own captive insurance company, we are in a privileged position and can self- manage our own risk via policies



By Richard Brook Head of Marketing and Insight

Some say that marketing is a fine balance between art and science, personally I lean more towards the science part. Marketing has to drive results and support business growth through awareness, attitudes and sales pipeline. It’s the unique mix of your proposition that lures your customers in and drives loyalty, but if no one knows about it, it can be difficult to compete in what is a dynamic and ever changing market. The dilemma is that marketing tends to come lower on the list of priorities for busy financial

advisers and there is also a shortage of marketers within firms to support this type of activity. Having interviewed over 300 financial advice firms it’s become clear that firms who dedicate time to marketing activity grow their revenue faster and more sustainably than firms who wholly focus on core activity. To help you start your year I want to share 10 top tips in relation to sales marketing activity in 2020 which I hope will support your growth ambitions in the New Year.

Richard has been with Tenet for over a year and originally was Head of Insight and Proposition. During this time Richard completed an independent proposition review of the services that Tenet offer to financial advisers. Richard has 10 years’ experience within Marketing and Research across IT, Media and Energy.

10 1


Make a plan and set objectives

Without knowing where you want to be it’s difficult to plan how you’ll get there. It’s really important to involve any other team members in this process. Try to understand what has worked before, set a clear budget and ask for feedback from your existing clients. Getting buy-in from the people involved in your business is crucial to the success of any plan and the setting of objectives. You’ll also be able to get new ideas you may not have thought of before. 2 The famous line from Peter Drucker still rings as true today as it did in the 90s. Understanding what works best can save your firm a lot of time, money and effort. Where does the best return on investment come from, is what you’re proposing measurable. How will you know how many leads you’ll get from that activity, will you track how many have been converted to a sale? 3 Get the whole team involved If you can’t measure it you can manage it



Keep it simple

The simplest of marketing plans are often the best when sometimes it can be tempting to get complicated. For example you could have a complex marketing campaign when actually you may not be using your existing clients for referrals. WOM (Word of mouth) is one of the most powerful marketing tools, are your clients incentivised to tell your story? Have you mapped out all of your contact points you have with clients, this is key to understanding the overall client experience and common pain points that could be addressed with the service that’s provided. 8 Understand your client journey


Review regularly

This is to track progress and to save resources should a marketing activity not be working as well as you’d hoped. Adding in a monthly or quarterly marketing review enables you to keep track of progress and tweak any existing activity to ensure you’re getting maximum value on your activity.

Diversify your product mix Do you often specialise in one type of product? If so then it means you’re clients are buying other financial products elsewhere. Think of it this way, if clients are buying protection from their bank or another broker they’ll soon be switching their mortgage or ISA’s to them to. We live in a world of convenience “under one roof” is the new norm. Although it may seem like you’re spending more time with each client, the value of each client will significantly increase. 4 Who are your high value segments and where do you position in the market? It’s hard to be all things to all people. For example do you focus on high net worth clients for instance and is your proposition tailored to that? What about peripheral services? 5 Identify a target market


Utilise the marketing support from Tenet

Our marketing support package brings you a whole range of support such as leaflets, brochures, adverts and social media across a wide range of themes, all of which are designed to give you a professional look to your brand and promote your business. Find out more on page 10 or on the ‘Grow Your Business’ section of the extranet. Most of the support is available FREE OF CHARGE, but we also work with external suppliers, such as The Outsourced Marketing Department (TOMD) who specialise in providing services to advisers at reduced rates on support such as economic and property reviews and newsletters.


What’s unique?

Standing out in a crowded market is important, to be famous for something and this doesn’t have to be completely unique, it could be a blend of different factors. Telling and showing that story through marketing activity is important to build awareness and referrals.


By David Lloyd Technical Services and Research Team Leader

These reports include massively streamlined suitability templates in comparison to the templates previously available on our extranet which is part of a concerted effort to make them more client-friendly and reduce the amount of time spent drafting reports. There are several benefits that we can realise through the use of centralised templates: • By generating reports for each case, you will always be using the most up to date version of the templates based on current legislation and policy; • Gathering feedback from AST allows us to identify the common causes of files not passing first time, enabling us to amend the templates and minimise the chances of these issues occurring in future; • The functionality of the templates will continue to be updated and improved to ensure that we can fully utilise the efficiencies available to us and automatically populate more sections of the report using data already in the system; • We will remain receptive to user feedback on the reports, making amendments where appropriate, making the reports work for both you and your clients.

Throughout 2019, the Technical Services & Research Team continued to provide technical support to our members across a variety of areas. In case you’re yet to speak to us, we aim to provide you with access to the most up to date analysis and guidance on new product and industry developments as well as providing technical guidance and support across all product areas. To provide some context, let’s introduce some statistics relating to the direct support we provide: • Received over 10,700 inbound calls, an increase of over 2,000 calls compared to 2018. • Spent over 1,000 hours on the phone, an increase of over 300 hours compared to 2018. • Handled approximately 6,800 emails on a variety of subjects, an increase of over 1,600 compared to 2018. Overall, a busy year helping advisers navigate the current marketplace and providing technical expertise where required. Suitability Templates As part of the move to Intelligent Office, we introduced a range of templates to support advisers with 91 documents available at launch and an ongoing schedule of templates planned for release.

The Year Ahead We believe that the key to Technical Services and Research being a valuable resource is the adoption of a proactive approach, providing support and improvements in areas where advisers do not even realise they need support. A major focus for 2020 will be on projects that will really add value to our proposition and assist members in reaching their goals. However, we have to acknowledge that the industry is constantly changing and new risks and opportunities often present themselves without warning. There are always going to be a large number of unknowns that will only come into focus as they approach. Whilst we endeavour to be as proactive as possible, we will always be in a position where we have to react quickly to any arising issues and support our members wherever possible. However, I am confident that the expertise and experience within the team will enable us to provide a superior level of service in 2020.



2020 is just around the corner… Make a date in your diary for upcoming events and kick start your CPD requirements

The programme for 2020 has been designed to incorporate your feedback from 2019. The main events are now split into three strands; Invest, Protect and Lend. This enables you to focus your learning and development in specific business areas. Tenet will provide you with a full year of knowledge, support and development. We encourage you to attend as many events as possible, not only to satisfy your CPD requirements, but to keep your awareness, comprehension and understanding of industry changes and developments at the highest level. It is also a chance to network with your colleagues, product providers and Tenet staff, plus you get 3-4 hours of CPD awarded at each event. All events are free of charge and your support staff can attend too, so don’t miss out – book your place(s) today and secure your CPD requirements!

1) INVEST – ROUND ONE Our final round of the exceedingly popular Masterclass events. These events will focus on investments and pensions. They 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. Target Audience: Investment & Pension advisers Approximate Timings: 9.00am arrival 9.30am start – 3.00pm finish CPD: Approx. 3hrs 30 minutes structured and 30 minutes unstructured To book your place on Invest Round One visit: Location Venue 10/03/2020 Manchester Haydock Racecourse 11/03/2020 Gloucester Stonehouse Court 12/03/2020 Birmingham Village Solihull 17/03/2020 Exeter Sandy Park Conference Centre 18/03/2020 Southampton Hilton at the Ageas Bowl (Stadium) 24/03/2020 Maidstone Hilton Maidstone 25/03/2020 London Amba Hotel 31/03/2020 Cumbernauld Doubletree by Hilton Glasgow Westerwood Hotel & Golf Resort 01/04/2020 Durham Ramside Hall Hotel & Golf Club 02/04/2020 Leeds Crowne Plaza Leeds 21/04/2020 Glamorgan The Vale 22/04/2020 Nottingham Doubletree by Hilton Nottingham Gateway 23/04/2020 Sheffield Tankersley Manor 28/04/2020 Belfast Stormont Hotel 3) LEND – ROUND ONE These events will 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 combination of round tables along with exhibition stands, where you will meet a wide variety of niche and high-street lenders, packagers and other providers who can help you develop further business opportunities. Target Audience: Mortgage advisers Timings: 9.00am arrival 9.30am start – 3.00pm finish CPD: Approx. 3hrs 30 minutes structured and 30 minutes unstructured To book your place on Lend – Round One visit: Date

2) PROTECT – ROUND ONE These events will focus on the protection market. With Tenet and the industry’s 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, and are open to advisers, paraplanners and admin staff. Our Provider partners will also look at other ways you can obtain further IDD CPD. Target Audience: Protection advisers Timings: 9.00am arrival 9.30am start – 3.00pm finish CPD: Approx. 3hrs 30 minutes structured and 30 minutes unstructured To book your place on Protect Round One visit: Sandy Park Conference Centre 12/02/2020 Southampton Hilton at the Ageas Bowl (Stadium) 25/02/2020 Maidstone Hilton Maidstone 26/02/2020 London Amba Hotel 03/03/2020 Cumbernauld Doubletree by Hilton Glasgow Westerwood Hotel & Golf Resort 04/03/2020 Durham Ramside Hall Hotel & Golf Club 05/03/2020 Leeds Crowne Plaza Leeds 10/03/2020 Belfast Stormont Hotel 17/03/2020 Bristol Village Bristol 18/03/2020 Glamorgan The Vale 19/03/2020 Nottingham Doubletree by Hilton Nottingham Gateway Date Location Venue 04/02/2020 Manchester 05/02/2020 Sheffield Tankersley Manor 06/02/2020 Birmingham Village Solihull 11/02/2020 Exeter Haydock Racecourse


Location Venue

21/04/2020 22/04/2020 23/04/2020 29/04/2020 05/05/2020 06/05/2020 12/05/2020 13/05/2020 14/05/2020

Birmingham Village Solihull

Bristol London Belfast Exeter

Village Bristol Amba Hotel Stormont Hotel

Sandy Park Conference Centre

Southampton Hilton at the Ageas Bowl (Stadium)

Durham Ramside Hall Hotel & Golf Club


Crowne Plaza Leeds Haydock Racecourse


If you have any queries, please call the events team on 0113 239 0011, extn.8132 or email



Give your business a New Year boost

The New Year is a perfect time to give your business a boost, and our marketing service could be the perfect starting point. That’s because there is a wide range of compliant options for you to choose from, all of which are quick and easy to use…and needn’t cost you a penny! What does our Marketing service include? There is a lot of support to choose from, including leaflets, brochures, social media posts, posters and adverts across a wide range of protection, pensions, savings and investment themes – plus many more, all of which are designed to give you a professional look to your brand and promote your

business. A key benefit is that we streamline compliance processes by pre-approving most of the marketing support that’s available to make it quick and easy for you to use. We will even add your logo and contact details for you. Most of the support is available without charge (you just cover the cost of printing the materials or the cost of placing an advert as relevant), but we do also have a website and newsletter service which is provided by external suppliers which do carry a cost, albeit at a discounted rate. If you need any help, call 0113 239 0011 and ask to speak to the Marketing Team or email

By Richard Edwards Head of Networks

Partnership terms

Unum has worked closely with Tenet for a number of years to provide our unique employee benefits (group risk insurance) offering to Tenet advisers. And as we go into 2020, you can continue to benefit from access to Unum’s partnership terms. Available across our Group Income Protection, Life Insurance and Critical Illness products, our partnership terms are designed exclusively for a limited number of selected advisers that have policies with 3-100 members. You’ll also get the backing of a dedicated technical support team. Here’s a reminder of how our partnership terms can benefit you.

Direct debit mandate discount 5% discount for payment by direct debit –automatically included in our quotes 3-year rate guarantee 3 years for the price of 2 – automatically included in our quotes Onboarding in the adviser’s name Communications support for your business from Unum at your request Increased non-medical limits A simple way to put cover in place while reducing the need for medical evidence for Group Income Protection and Group Life Insurance Integrated Employee Assistance Programme Creating a complete support package for employers and employees Access to Help@hand for Group Income Protection policies* Our new app-based solution to help businesses manage their sickness absence more effectively.

For more information about Unum’s partnership terms, please contact

* For new policyholders from 1st of September 2019. Existing policyholders at rate review prior to April 2020 and at renewal thereafter Unum is a leading employee benefits provider offering financial protection including Income Protection, Life insurance, Critical Illness, and Corporate Dental Cover through the workplace. Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered and Head Office: Milton Court, Dorking, Surrey, RH4 3LZ. Registered in England company number 983768.


By Railene Waters Head of Business Development

Does inflation matter?

Multi-asset investments We invest across a broad range of assets through different fund managers with a strong expertise in Alternative Investments, Structured Products and Investment Trusts. Seeking returns from investments that behave differently than typical stocks and bonds provides diversification. With a multi-asset portfolio, we seek to manage risk while seeking to outperform inflation. Investment solutions to meet different needs Our solutions are designed to produce a variety of outcomes for clients as can be seen on the chart below. The risk levels increase from DT4 – DT6 for the Real range. Real income A solution which is specifically designed for managing a CPI linked income of up to 4%p.a. A personal benchmark is created so performance can be tracked at reviews and used in conjunction with Advisers cash flow model plans. Real income considers sequencing risk, pound cost ravaging and a client’s need for income flexibility and is strategically managed to maintain a sustainable return through time. Real 2/3/4/5 mandates are available on both an MPS and Discretionary basis, visit us at for further information.

In low inflationary environments clients often think the impact of inflation is negligible and can be ignored, but is that true? In the chart below, we show the decline in purchasing power over various time periods when CPI is at 2%, 4% and 6%.

Decline in purchasing power over time What will £1,000 today be worth in 5, 10 or 25 years’ time?

Source: City Asset

In the chart below the FTSE100 is shown against CPI + 4% the volatility of the FTSE 100 is demonstrated (in the red line) but would you expect for the performance of the two to be so close after 22 years? CPI + mandates are challenging, as we have to consistently perform while managing volatility. City Asset Management is a multi-award-winning specialist discretionary investment manager focusing on real returns.

UK CPI+4% p.a VS FTSE 100 (March 1997 - August 2019)



DT Rating


To outperform CPI+2% of portfolio costs, over the investment cycle To outperform CPI+3% p.a. net of portfolio costs, over the investment cycle Aims to sustain withdrawals of up to 4% p.a., rising with inflation net of portfolio costs, over the investment cycle To outperform CPI+4% p.a. net of portfolio costs, over the investment cycle To outperform CPI+5% p.a. net of portfolio costs, over the investment cycle To outperform the AIM (ex Inv. Trust) index from a portfolio of shares that qualify for Business Relief












Source: Bloomberg

The value of your investments can fall and you may not get back the amount invested. Past performance is not a guide to future performance. Please see the relevant section of our website for more detailed information and risk warnings. You should not invest in or deal in any financial product unless you understand its nature and we recommend you seek advice Compliance Code: DH2359

With outcomes-based mandates of CPI + x% depending on the client’s attitude to risk. Our real return mandates let you and your clients know what we are aiming to achieve.


By Simon Morris National Business Development Manager

Premier Miton’s multi-manager investment solutions

Established and experienced multi-asset investment team

Simon Morris, Premier Miton’s National Business Development Manager, provides an overview of Premier Miton’s multi-manager investment solutions. Premier Miton’s multi-manager funds offer investors access to actively managed, multi-asset portfolios with specific long-term investment objectives. Investment solutions to meet different needs Our solutions are designed to produce a variety of outcomes for clients, including income, growth, absolute return, conservative growth and balanced returns as well as a risk managed range. Highly diversified, multi-asset investments We invest across a broad range of assets, including equities, bonds, commercial property and alternative investments, directly or through different funds managed by specialist fund managers, to increase diversification, improve the risk/return profile of the portfolios and help deliver the best outcomes for clients.

Premier Miton’s multi-manager investment team comprise five full time fund managers, including Director of Multi-Asset Funds David Hambidge who helped launch Premier Miton’s flagship multi-manager funds. The stable, well-resourced and experienced multi-manager team have an average 24 years of investment industry experience and an average 19 years at Premier Miton Investors. They can also call on the expertise of other managers from Premier Miton’s UK equity, global equity, fixed income and absolute return investment teams. Strong performance record Premier Miton’s multi-manager funds have a strong track record of producing attractive income, strong absolute and relative growth as well as risk-adjusted returns.


Income Risk-adjusted returns

Growth Historic yield

Premier Multi-Asset Monthly Income Fund IA Mixed Investment 20-60% Shares sector





Premier Multi-Asset Distribution Fund IA Mixed Investment 20-60% Shares sector





Premier Multi-Asset Growth & Income Fund IA Mixed Investment 40-85% Shares sector





Premier Multi-Asset Global Growth Fund IA Flexible Investment sector





Find out more For more information, contact our Business Development team on 0333 456 9033 or email

This article is for information purposes and is only to be issued to financial intermediaries. It is not for use with customers. It expresses the opinion of the author and does not constitute advice. Past performance is not a reliable indicator of future returns. Income source: FE Analytics. Historic yield based on class C income shares and reflects distributions declared over the past twelve months as a percentage of the share price of the fund as at 01.11.2019. The yield is not guaranteed and will fluctuate. Quartile ranks source: FE Analytics, to 31.10.2019, based on class C income shares. Total returns based on a bid to bid, income reinvested, UK sterling basis. Risk adjusted returns based on Sharpe ratio. Issued by Premier Miton Investors. Premier Portfolio Managers Ltd is registered in England no. 01235867. Premier Fund Managers Ltd is registered in England no. 02274227. Miton Asset Management Ltd is registered in England no. 01949322. Miton Trust Managers Ltd is registered in England no. 04569694. All these companies are authorised and regulated by the Financial Conduct Authority and are members of the ‘Premier Miton Investors’ marketing group and subsidiaries of Premier Miton Group plc (registered in England no. 06306664). Registered office for Premier Portfolio Managers Ltd, Premier Fund Managers Ltd and Premier Miton Group plc: Eastgate Court, High Street, Guildford, Surrey GU1 3DE. Registered office for Miton Asset Management Limited and Miton Trust Managers Limited: 6th Floor, Paternoster House, 65 St. Paul’s Churchyard, London EC4M 8AB. For your protection, calls are recorded and may be monitored for training and quality assurance purposes. 06111916309


By Martin Lines Business Development Director

The past can future-proof your advice process

Understanding the innate primal responses that drive our behaviour can significantly improve decision-making. That’s why it’s important to integrate behavioural economics into your advice process. Behavioural economics reveals how the past can influence decisions we make about our future. Recent research suggests that more than one in three advisory firms have already introduced behavioural economics into their advice process. And many more are thinking about it. This is unsurprising really. Our new Bias Insight and Action tool suggests that in a typical retirement process there are around 50 touchpoints where behavioural biases could prevent the right outcome. For example, holistic retirement planning will include non-pension assets. One such asset is equity in the home. There are two behaviours that could influence how clients assess this. Firstly, ’mental accounting’. Often people allocate money for specific purposes. They may have a holiday fund and rainy day savings for emergencies. Their property might be mentally ring-fenced for inheritance or some other purpose. That means people may not volunteer the equity in their home as a possible source of retirement income if you ask an open question. The solution could be to prompt from a list of potential assets. This way you’re less likely to miss anything. The second behaviour in this context is ‘framing’. How a choice is presented can affect the decision consumers will make. A 2017 research study found that when over 55s were asked if they would like to continue to live in their current home as they grow older 61% ‘strongly agreed’. When the same question was asked, but the word ‘property’ substituted for ‘home’ the number dropped to 48%. This is not about leading people, but understanding that how something is ‘framed’ can influence the response. What’s more, the same behaviour can play out in different ways across the advice process. For example, ‘framing’ can also occur in the context of annuities. The FCA revealed in its 2014 report ‘Does the framing of retirement income options

matter’, that when annuities are presented as a form of insurance, 66% of consumers preferred an annuity to a savings account, but when presented as an investment product only 17% chose the annuity. A further example of ‘framing’ could impact drawdown clients. Research shows that people are highly likely to choose the middle option if offered three choices. So offering funds with 0%, 40%, 80% equity content or 40%, 70%, 100% can lead to quite different results. Of course, an adviser will have identified the risk appetite of a client and their capacity for loss, which should lead to a personal recommendation, but it is another example of how one behaviour can manifest itself in a number of ways. In fact, there are several behaviours that recur throughout a typical retirement advice process. Take ‘hyperbolic discounting’. This is the tendency to put a greater value on money today over money tomorrow. It can lead to clients choosing a single life annuity, without escalation, to maximise their income today. It may tempt them to take more income than perhaps they ought to under drawdown. It can also explain why many people in the US and Australia are running out of money during retirement. It’s surprising just how many behaviours can influence a typical retirement process. Some like ‘framing’ and ‘hyperbolic discounting’ are relatively well-known, but there are a number of lesser known behaviours that can play out. For example, ‘disposition effect’ is a behaviour to be aware of. It’s the tendency to sell ‘winning’ investments too early and hold on to ‘losers’ too long. There’s a logic to this. Once you sell a poorly performing fund the loss is realised, but up to that point there is still the prospect that the fund could make a recovery. Equally, selling a fund that has been profitable is attractive because there’s always the possibility that the gain could be lost if the fund starts to perform poorly. A US study showed that this bias can harm returns. The study found that the average return of ‘winning’ stocks that were sold was 3.4% higher in the following year than the average return of ‘losing’ stocks they held on to. And taken to its logical

For more information: Call: 0345 302 2287 Email: Or visit our website for further information: Lines are open Monday to Friday, 8.30am to 5.30pm conclusion the client would end up with a portfolio of poorly performing funds (having sold funds whenever they perform well). Another lesser-known behaviour that can hamper sound decision-making is ‘projection bias’, described as ‘failing to observe that future preferences could differ from today’. In short, we struggle to recognise that our life will be different in the future. For example, if you’ve ever shopped for food when you’re really hungry, you’ll almost always buy much more than you need. Even looking over a short space of time, we can’t easily appreciate that our hunger will pass and we’ll feel less hungry once it does. Planning for retirement means looking into the future to consider how life will change. For example, on average, a 65 year old can look forward to around 10 years of good health during retirement (women fare a little better than this) and about the same time as their physical health is deteriorating, cognitive ability starts to decline. By 85, two thirds of people have a disability or longstanding illness. These changes can affect someone’s ability to make sound decisions in the future and will also impact on their spending requirements. It’s critical advisers make their clients aware that life will be different and emphasise the need for regular reviews. These are just a few behaviours that, if left unchecked, could undermine the advice process. Our new Bias Insight and Action tool plots where biases and behaviours are most likely to occur in a typical retirement advice process. It also identifies actions you can take to mitigate negative influences. If you haven’t introduced behavioural economics into your advice process our new tool can give you a head start.

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By Steve Owen Head of Elevate Platform Proposition

Five things advisers want from their platforms

Steve Owen, Head of Elevate Platform Proposition, shares the questions advisers ask most often when selecting a new platform. One aspect of my job that I love the most is getting to speak to advisers. This allows me to be confident that I really understand their business models and what it is they want from a platform. An area I take pride in, and which I believe puts our industry in a strong position, is the importance that advisers place on delivering excellent outcomes for their clients. Fundamentally, advisers want to know ‘How does your platform meet the needs of my clients and my due diligence requirements?’ These are the questions that come up time after time. How well does your platform work? The first question advisers ask is whether Elevate takes care of the basics. ‘Does it work? Does it do what you say it does? Is it robust? How does it fit with my business processes?’ What investment solutions are available? Next, advisers ask about the range of investment solutions offered. ‘Does it support the investment proposition that we look at for our clients? What is the cost of that investment component or solution, and how does that stack up when looking at the total cost of investing on the platform?’

Will this platform support the particular needs of my business? As conversation progresses, questions can become much more varied. The availability of tax wrappers is often important. ‘Is the platform designed to support core financial planning needs, including account structures such as sole or joint names, tax wrappers like ISAs and pensions? Can it hold unwrapped investments in a general investment account (GIA)? And what about other tax wrappers like third party GIAs and trust accounts?’ Is the platform efficient and easy to use? Advisers want to be sure more generally how it will put them into a position to serve long term client needs moving forward, around areas such as: • General client performance reporting • Investment performance reporting • Ease of money in and out • Ease of completing ongoing client review process • Efficiency of adding new business • Tax reporting A few concluding thoughts… I think when advisers are looking to use a platform, it’s important to align the platform specifics with what the adviser is trying to achieve for their clients. It’s important there is compatibility between the adviser and the platform provider, and shared organisational values, so everyone is working together to support delivery of excellent outcomes for clients. If you’d like to know more about how Elevate is helping adviser businesses, please take a look at our website or make contact with our account managers who will be very happy to answer all your own questions – whether or not they fall into the categories discussed here.

How committed are you to the proposition?

Another key question is around our commitment to the market. ‘Is the proposition here for many years to come?’

To learn more about what Elevate offers, and how it can help you to fulfil your business goals and help support your proposition, please visit our Elevate website [Link to Elevate Features and Benefits Page

The value of investments can go down as well as up and could be worth less than originally invested. The views expressed in this blog should not be regarded as financial advice.

Elevate Portfolio Services Limited trades as Elevate and is part of Standard Life Aberdeen group. Elevate Portfolio Services Limited is registered in England (01128611) at 14th Floor 30 St Mary Axe, London, EC3A 8BF and authorised and regulated by the Financial Conduct Authority. © 2019 Standard Life Aberdeen, reproduced under licence. All rights reserved.


By John Chew Pensions, Tax and Estate Planning Specialist

Retirement and Pensions Outlook 2020

Lifetime allowance and State Pension A few changes accompany the start of the new tax year. The pension lifetime allowance is edging back up again to £1,073,000 and the benefit of the triple lock will see state pensions increase by nearly 4%, with the single tier pension increasing to £175.20 per week. Life in the world of pensions never stands still. Canada Life has recently greatly improved the investment options within our flagship pension solution, The Retirement Account, to give your clients the pension freedom they deserve. There’s a wider choice of funds, easily selected from a new three tier framework. The retirement and pensions industry continues to face a number of changes in 2020, which will affect both your clients and your business. To find out more about retirement solutions from Canada Life visit 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.

The Retirement and Pensions industry continues to face a number of changes in 2020 which will affect both your clients and your business. During 2019, the FCA issued key papers PS19/21 and CP19/25, updated their business plan 2019/20 and introduced with TPR a template for standardised information for transfers. By 6 October 2020, the state pension age will have increased from 65 to 66. The next planned increase will be in 2026 (affecting those born on or after 6 April 1960). It gradually increases through 2026 and 2028 and by 6 March 2028, SPA will be 67 for men and women. Investment pathways As part of the FCA paper PS19/21 and to assist clients in non-advised drawdown from wholly investing into cash, there will be new rules placed upon providers to discuss the options available under the new investment pathways. These rules require the provider to present pathways to clients and ask them to make a decision on which best suits their needs. The FCA has set these out as follows: • Option 1: I have no plans to touch my money in the next five years • Option 2: I plan to use my money to set up a guaranteed income (annuity) within the next five years • Option 3: I plan to start taking my money as a long-term income within the next five years • Option 4: I plan to take out all my money within the next five years On the face of it, this appears sensible for non-advised clients. However, for at least some advised clients the provider will be required to discuss the investment pathways with the client directly. In addition, when recommending an investment – either at outset or when changing a drawdown portfolio, an adviser will need to consider the new investment pathways and evidence why the recommended strategy is more appropriate for their client.

independent oversight of the pathways being offered by a provider, and whether the pathways offer value for money to clients. Wake up packs enhanced wake up packs which set out available options, including a single page summary highlighting the key elements of their pension along with supporting information. The packs, which launched on 1 November, aim to prevent clients sleepwalking into retirement, and will also highlight the Government’s pension guidance service. From age 50 and every five years thereafter, clients will receive new Clarity around costs and charges The FCA rightly continues to focus on creating greater clarity around charges highlighting the monetary cost the client would have incurred in their pension during the previous 12 months. This will come into effect from 1 August 2020. As part of this process the new Money and Pension service will launch a drawdown comparison tool to help clients looking for non- advised drawdown. Pension Transfers Defined Benefit and transfers in general are very much front of mind for the FCA. The CP19/25 paper looks at the wider issues and in particular, we’re likely to see a ban on contingent charging. A further potential development is a short form of advice known as abridged advice and there will be clarification regarding the position on firms offering a triage service. DB transfers remain a specialist area, but with an increasing number of larger pension schemes offering partial transfers, the opportunity to continue to transact business in this area for the right client in the right circumstances remains.

The FCA is proposing Investment Governance Committees will have


By Adam Carnall Head of Partnerships

Help your clients meet their equity release needs through a whole-of-market service

2019 was another busy year for equity release, with market activity rising 8% between Q2 and Q3, resulting in almost £11m of property wealth being unlocked per day in Q3 1 . The range of plans also experienced a big increase over 2019 as demand for flexible plans grew, leading to the availability of almost 300 equity release plans, up from just 48 five years ago. Further, increased competition amongst lenders resulted in record-breaking low interest rates; customers faced much lower costs when taking out equity release as average rates fell to below 5% for the first time in June 2019. As property wealth becomes more and more central to our retirement planning conversations, it’s increasingly important that clients are aware of all the options available to them. That’s why a whole- of-market equity release service is crucial in helping them find the right plan for their circumstance. According to our recent research 2 , a vast number of clients did not understand the difference between tied and whole- of market-advice before they released equity from their home. This means that many clients may be unknowingly choosing a service which can only offer them access to a restricted range of plans – possibly limited to only one lender. There is now a huge variety of equity release plans available on the market, with a wide range of features, to suit every client’s individual circumstances. But clients could be missing out on features that could better suit their needs or even save them money over the life of the plan if they inadvertently use a tied service instead of whole-of-market. As financial advisors, it’s our responsibility to ensure customers get the best advice and can access the most suitable plans. That’s why we offer our The importance of providing quality advice in 2020

customers access to a whole-of-market advice service, meaning that we’ll find the best plan for them, whatever their circumstances. How equity release referral services can work for you We believe customers deserve to know all of the options available to them. Referring through Age Partnership gives you the opportunity to offer the widest range of options for your customers, whilst earning yourself commission for every referral. As the UK’s number one 3 , we have access to preferential rates and exclusive plans from leading lenders, meaning your clients could save hundreds or thousands of pounds in interest over the course of the plan. We also have full UK coverage with over 150 qualified fully employed advisors ensuring that if they choose, customers are able to talk through their options in the comfort of their own home. Should they wish to have the conversation over the phone, we also have a team of telephony advisors that can arrange a meeting at a time convenient to them.

All customers receive a free, personalised advice process that is followed up by a suitability report that highlights all elements that have been discussed, in plain English, enabling them to review everything covered and share with family members should they wish. By being referred through us, customers receive access to exclusive products, rates and features from the whole of the market that wouldn’t be available by going direct. If you want to find out more and start offering equity release to your clients in 2020, get in touch with our dedicated Partnerships team today. As an introducer through Tenet, you can benefit from 1.75% of the amount released.

For more information on our referral service; Call 0808 1452 269 Email Visit

1 Equity Release Council 2 Age Partnership survey results, Oct 2019, n=-1084 3 Touchstone data, number of plans Jan 18 – June 19


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