Connected Issue 74 - Winter 2019

connected A Tenet Group Publication Issue 74 Winter 2019

SPECIAL FEATURES Are you a Principal looking to retire or leave the industry? Our Practice Buyout Scheme could help you plan your future.

OTHER FEATURES Are you looking to expand your business in the New Year? We can help. Industry Update - A view from Royal London

TENET COMMUNITY The toughest challenge – climbing Kilimanjaro! Neil Flint, Principal of Alexandra’s Financial Management Ltd shares his recent challenge.

The Intelligent Office journey and transition – where we are now Canada Life has greatly improved the investment options within our flagship pension solution, The Retirement Account, to give your clients the pension freedom they deserve. Built with extensive input from financial advisers, The Retirement Account allows clients to consolidate their pensions, make regular contributions, and seamlessly move into pension drawdown or access guaranteed income when the time is right. The Retirement Account Complete flexibility for you and your clients We have listened to what advisers have been telling us, and this update to The Retirement Account is a statement of our ambition to become the market leading provider in the pension and retirement planning market. On top of our existing unique capability, allowing customers to blend drawdown with a guaranteed income, we have greatly expanded the fund range and added much improved digital capability. We recognise this market is constantly evolving and to stay ahead we have a dedicated team work n to continually enhance the product, seeking continuous feedback from the adviser community. S an Christian, MD and Executive Director at Canada Life

You’re in control with The Retirement Account

For more information call 0800 912 9945 or visit canadalife.co.uk/adviser

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

Telephone calls may be recorded for training and quality monitoring purposes. 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.

Get to grips with your clients’ changing retirement journeys

The Retirement Account enables complete flexibility for you and your client. Built with extensive input from financial advisers, it offers: • Optional guaranteed income that you’re free to adjust for your client with the benefits of flexi-access drawdown • A broad choice of investments, flexible enough to deal with changing objectives • Three distinct fund ranges, each with specific purposes • A competitive and simple charging structure, with no charges for switching • A focus on strong governance

You can also phase tax free cash withdrawals automatically, alongside any amount of taxable income your clients need, for complete flexibility to adapt as they go through life.

You’re in control with The Retirement Account

For more information call 0800 912 9945 or visit canadalife.co.uk/adviser

Telephone calls may be recorded for training and quality monitoring purposes. 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.

connected A Tenet Group Publication Issue 74 Winter 2019

SPECIAL FEATURES Are you a Principal looking to retire or leave the industry? Our Practice Buyout Scheme could help you plan your future.

OTHER FEATURES Are you looking to expand your business in the New Year? We can help. Industry Update - A view from Royal London

TENET COMMUNITY The toughest challenge – climbing Kilimanjaro! Neil Flint, Principal of Alexandra’s Financial Management Ltd shares his recent challenge.

The Intelligent Office journey and transition – where we are now

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

WELCOME – 3

Editor’s Foreword

CONTENTS… what’s in this issue

4 The Intelligent Office journey and transition – where we are now Steve Jones, Adviser Relationship Director, looks at some of the key areas where we’ve made changes, which hopefully are starting to deliver results for you, the end-user. 6 Are you a Principal looking to retire or leave the industry?  Our Practice Buyout Scheme could help you plan your future. We have developed a Practice Buyout Scheme to help members who want a clear succession plan for the future, which rewards the loyalty and longevity of being one of our members. 8 2020 is just around the corner… Make a date in your diary for upcoming events and kick start your CPD requirements

Welcome to your Winter issue of connected This issue sees our latest update on the Intelligent Office implementation taking the headline spot. Steve Jones, Adviser Relationship Director, focuses on where we are now and acknowledges the significant challenge it has placed on our member firms. A number of key aspects have been summarised. We will continue to support you and deliver the help you need to embed iO into your business. You can read his article on page 4 and 5. Also in this edition Steve has been busy in this issue as he also highlights Tenet’s Practice Buyout Scheme. At Tenet, we are not just here to help member Principals prosper now, we are also here to help by creating a viable exit plan when members are looking to retire. With 11 successful Practice Buyouts under our belt, maybe this is something to consider if you are a Principal looking to leave the industry or retire? Take a look at pages 6 & 7. Protection is set to feature heavily in 2020, as an area where more can be done to help you generate sales and for protection to become a cornerstone to every advice interaction across the Tenet network. This issue sees the start of this focus. See page 10. A first in connected, this edition includes an industry update from Royal London and we also have our regular events update setting the scene for 2020, with a range of new events coming to a location near you. A must for your CPD requirements. If you are looking to expand your business in 2020, we can help. With a dedicated recruitment consultant providing a free service for TenetConnect members you may find our latest article of interest. Take a look at page 14. Supplement enclosed with this issue With this edition we are including ‘Fund Spotlight’. This publication provides a dedicated medium for Fund Managers to showcase their products and services to ensure you are up to date with all the latest news and information in the fund management sector. Finally… On a final lighter note, we include a community article from Neil Flint, Principal of TenetConnect firm Alexandra’s Financial Management Ltd. Neil recently climbed Kilimanjaro and his frank and personable account makes for an interesting read. See page 39. I hope you find connected informative and useful, and, as always, please let me know if you want me to include anything else in future issues. You can email me: sara.healey@tenetgroup.co.uk

4

10

18

10 Change the conversation C reating a focus on protection

12 Industry Update

A view from Royal London

14 Are you looking to

expand your business in the New Year? Let us help you take the hassle and cost out of recruiting.

25

PROVIDER SUPPORT 15 - 40 Latest News and Products

With best wishes for a merry Christmas and peaceful, productive and happy New Year.

Sara J Healey Marketing Consultant

WINNER BestNetwork

Contacts

Editor Sara Healey

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

connected Magazine is for internal purposes only and is not intended as an advertisement. As a result this should not be issued in any form to clients. Not all the products in this feature are the responsibility of the Tenet Group Limited. Terms and Conditions. Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views expressed in this publication do not necessarily reflect those of the advertisers or the publishers.

Tel 0113 239 0011 Fax 0113 239 5322

connected - a Tenet Group publication­

4 – TECHNOLOGY UPDATE

The Intelligent Office journey and transition – where we are now

Steve Jones Adviser Relationship Director

Training and Support Training has been a key area where some of you have highlighted the need for additional support. Whilst our frontline team have worked tirelessly to address your more immediate issues, in the background, we have been reaching out to all our member firms to find out where you are in the journey to adopting iO and if you have any additional training needs. We have subsequently been working with those of you who want more help to transition, which includes providing additional face-to-face sessions at a wider selection of venues in the UK, throughout December. To facilitate this, we’ve employed seven new full-time iO training consultants, who are purely dedicated to this. On the more immediate front, we increased our first-line headcount in October to deliver more screen share sessions with the iO support team and cut down on call waiting times. We’re also continually reviewing the feedback we are receiving from our members to understand where additional guidance is required. For example, this has resulted in a quick glance guide to the investment advice process and a pragmatic approach for undertaking standalone general insurance. System and Processes 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. We were able to quickly give you the ability to delete documents, clients and plans as required and we are also starting to look at extending document design/ branding capabilities for firms.

We’re now over two and a half months into the Intelligent Office (iO) implementation and I’d like to take this opportunity to summarise how things have evolved since 25th September. We recognise that a change of this scale places a significant challenge on our member firms, and I firstly wanted to say a sincere thank you to you all for your effort and resilience over the past months. I’ve had many individual phone conversations, group meetings and have met a lot of you face-to-face at our final round of Professional Development Meetings, so I am very much aware of some of the challenges you have faced. Since launch, we have been tracking member reaction to the rollout on a daily basis. This includes analysing the feedback and query themes from the calls made into our iO support team and proactively speaking on a 1-2-1 basis with over 95% of our member base to understand your individual position, where you need additional support and what you are finding challenging. From this, we have established three key areas of focus that, working with our members, will get us to a position where the system is fully implemented. These are: a. Training and support b. System and processes c. Payments and matching Let’s walk through these areas specifically to highlight the activities already completed at the time of writing and those we have planned for the weeks ahead.

We are also in the process of producing guidance for some more specialist areas of advice, including defined benefit pension transfers and pension crystallisation. Finally, we are continually reviewing the content of our existing templates and enhancing these, to ensure that they’re as user-friendly as possible. In addition to these changes made by Tenet, your feedback has also helped us to collate a list of system developments, particularly around using the system for mortgage business, and these are currently being reviewed and prioritised by Intelliflo. We will be sharing the key themes of these and the anticipated delivery dates once finalised. Payments and Matching Whilst we did thoroughly test the payment matching process in the run up to go live, the introduction of 25 years’ worth of Tenet Advantage data into this process hasn’t been as smooth as we’d have hoped and I’d like to thank you specifically for your efforts on payment matching. Your individual data cleansing, on top of our ongoing bulk matching work and our solution for matching payments worth less than £5 and in relation to L&G multi-benefit policies, has allowed us to achieve an average of over 90% matching by early December. Whilst this has returned us back to near pre-Intelligent Office levels we will of course continue our matching work to support all firms to achieve these levels and beyond, with particular focus on facilitating matching and valuations to work together.

TECHNOLOGY UPDATE – 5

What some members have had to say… Whilst we appreciate this has not been as smooth a transition as we had hoped, we have had some positive feedback from members as the system starts to be embedded.

As a former user of Intelligent Office I was already a convert to the system and find it fairly intuitive with good functionality. I really like the system and think it enables us to have good MI and a clear picture of my business. I do believe Intelligent Office will ultimately be an improvement for most users given time. I hope that more functionality will be considered, especially relating to suitability reports for new business and portfolio reports which we use for client annual reviews, to further gain benefit from iO. “Whilst the migration has not been the smooth process we would have liked, after the corrections and additional data input for clients, plans, contributions & withdrawals and fee matching we have everything working as it should. Tenet have recognised the fee matching issues and had the foresight to pay fees in advance which meant we were not financially disadvantaged during the changeover process. Finally, the iO support team were able to help in guiding us through some of the initial frustrations with clear guidance on what to do to resolve issues quickly. Rob Lyle, Lyles’ Independent Financial Advice Ltd We believe the switch to Intelligent Office has been great overall. The system has fantastic integration with 3rd parties as well as a neat database to keep notes and automated updates/documents. Granted, this does involve quite a bit of work at the outset getting the information into the system, but we believe the long-term efficiency and time savings far outweighs this cost. Our only grievance has been with the commission migration; however, we understand that such a large migration is likely to have teething issues and Tenet providing steady cash flow throughout helped minimise the impact of this. Angus Bunten, Principal of The Ailsa Partnership Ltd Although there is a lot to learn and we have found it to be a difficult system to initially get to know, my admin team now think the system is interactive and will be a substantial improvement in future. We are already finding that we are completing cases quicker and can see the benefits for the future business. Whilst there have been issues with commission payments, which has taken time for us to resolve, this is also improving and we believe that the future time savings will be worth the teething issues we have experienced. Malcolm Barclay, Principal of B G A Financial Services Ltd I am actually feeling quite confident at the moment. Whilst we initially had a number of issues with migrated data from Tenet Advantage, this proved to be related to the existing data rather than the actual migration. Most of our business is related to existing clients and their reviews, so where we had questions we used the Quick Glance Guide or called the helpdesk, if we could not work out what we needed to do. I have to say I found the staff on the helpdesk were fantastic – really helpful, although the wait on the phone, initially, was frustrating. We currently don’t have a backlog of cases so are quite relaxed about the use of Intelligent Office at the moment. Martin Roden, Principal of Martin Roden Financial Services Ltd In Summary We’ll keep providing you with weekly updates on the changes and enhancements to improve the user experience, supported by extended training support, as well as refreshing the extranet area so it is easier to quickly find the support and material you need. Once again, I wanted to thank you all sincerely for the effort you’ve been putting in to this implementation. Successfully embedding iO remains our number one priority here at Tenet and we do care about the impact that this is having on your day-to-day business. Therefore, in partnership with Intelliflo, we are determined to deliver the support and developments identified via your feedback as soon as possible so that we can go into 2020 in a position of strength.

6 – SPECIAL FOCUS

Are you a Principal looking to retire or leave the industry? Our Practice Buyout Scheme could help you plan your future.

Steve Jones Adviser Relationship Director

At Tenet, our network services are not just here to help member Principals prosper now, we are also here to help by creating a viable exit plan when members are looking to retire. As a result, we have developed a Practice Buyout Scheme to help those who want a clear succession plan for the future, which rewards the loyalty and longevity of being one of our members. By already being a member of TenetConnect, we believe we are best placed to aid a seamless and efficient transfer of clients once such an important decision has been made. Who can benefit from this scheme? Our Practice Buyout Scheme is available to Principals who are looking to retire and want to find a trusted partner to look after their clients. Alternatively, this may be part of your succession planning and you may wish to stay in the business for some time post completion. Typically, if this was the case then you would become an employed adviser within Aspire, Tenet’s own advisory business. Successful Buyouts so far… To date we have successfully managed 11 Practice Buyouts and have established hubs in six locations. A total of nine advisers have joined Aspire and are supported within the business. In addition, the scheme has allowed eight Principals to retire after Tenet purchased their client assets.

SPECIAL FOCUS – 7

What is the qualification criteria? You need to be: • An authorised member of TenetConnect, who has been a member of the group for at least two years. • Able to demonstrate an excellent track record with file quality and complaints for your business. Why choose Tenet? As a member of the network we already know a lot about each other and how our businesses operate. In the majority of cases you will be using our template documents for your clients and they will know our name. This familiarity with Tenet will enable a much better retention of clients once you have decided to sell the business, which will help to secure the value for you and the on-going business for Tenet. Our main concern will be to continue to ensure a great level of service for your clients and we will work with you to manage that change effectively in their best interests. We will review their financial advice as and when they are due for their next financial review and would only move clients’ assets if it is beneficial to them. Other considerations Whilst we will consider every application for our Practice Buyout Scheme, we are looking for potential sellers who can demonstrate the quality of their conduct and have some desirable key performance indicators that will help us decide whether to accept a firm’s application. In addition, location, the Principal’s plans at completion and the profile of the client bank are also factors that we will take into consideration. Due diligence Any deal would be subject to a thorough due diligence review focussed on financial advice, client assets and income received as well as other standard reviews.

What the Principals had to say:

Tom O’Neill, Forth Financial “Brad and I started our business way back in 2002. Having come from a home service background we were unfamiliar and unsure of the Independent Financial Adviser world, but after some research we decided to join Tenet Connect. This was a good choice for us. “When the time arrived for us to consider moving the business on, due to my retirement, followed possibly by Brad’s retirement in a few years’ time, we began looking around for any interested parties that might wish to buy us out. “Our priority was first of all to our customers. It took us a long time to build up a good quality client base and we didn’t want to just sell off the business without ensuring - as best we can - that they would continue to receive the level of service that we had provided. “In addition, we had exceptionally loyal staff; Hazel our Office Manager, Andrea our Mortgage Consultant and Steven our IFA. We wanted to ensure that they could remain in place and have as much security and as good a financial package as we could find. “We were both approached and made approaches to several companies. Not surprisingly the majority of the offers we received were very similar, and most were not what we were looking for. “One offer though, stood out. This offer was from Tenet and it met all of our priorities and more, allowing our business to be transferred, but also allowing the business to remain in situ, providing Brad, Andrea, Steven and Hazel with a good employed package and the backup of a well-recognised and respected Network. It also provided Brad and I with the security of knowing that our clients will continue to receive a great level of service. “I would certainly and confidently recommend Tenet to anyone if they are considering moving their business on, be it through retirement or just making life in the financial world that bit more comfortable for themselves.” Peter Pearson, Elementum “With over 50 years in the industry between us, Martyn and I valued our long standing relationship with clients and it was of primary importance that they would continue to receive the same quality of service that we built our name on. This was the reason that we chose Tenet when we were looking to sell the business. “Since completing the sale and becoming employed advisers this has allowed us to achieve our other objective - to focus on our clients purely as advisers without the on- going burden of running a business”

Find out more about Tenet’s Practice Buyout Scheme To find out more about our Practice Buyout Scheme and request our initial information form, please contact account.management@ tenetgroup.co.uk

8 – EVENTS FOCUS

1) INVEST – ROUND ONE 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 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 2020 IS JUST AROUND THE CORNER… Make a date in your diary for upcoming events and kick start your CPD requirements

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 across all brands Timings: 9.00am arrival 9.30am start – 3.00pm finish CPD: Approx. 3 hours IDD CPD To book your place on Protect Round One visit: https://events.tenetgroup.co.uk/Protectone2020 Date Location Venue 04/02/2020 Manchester Tankersley Manor 06/02/2020 Birmingham Village Solihull 11/02/2020 Exeter 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 Haydock Racecourse 05/02/2020 Sheffield 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!

To book your place on Invest Round One visit: https://events.tenetgroup.co.uk/Investone2020 Date 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

EVENTS FOCUS – 9

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

Date Venue 21/04/2020 Birmingham Village Solihull 22/04/2020 Bristol Village Bristol 23/04/2020 London Amba Hotel 29/04/2020 Belfast Stormont Hotel 05/05/2020 Exeter Sandy Park Conference Centre 06/05/2020 Southampton Hilton at the Ageas Bowl (Stadium) 12/05/2020 Durham Ramside Hall Hotel & Golf Club 13/05/2020 Leeds Crowne Plaza Leeds 14/05/2020 Manchester Haydock Racecourse Location

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: https://events.tenetgroup.co.uk/Lendone2020

FINALLY, DON’T FORGET OUR CPD WEBINARS WITH 30 MINUTES OF CPD FOR EACH WEBINAR YOU VIEW! Throughout 2019, Tenet have hosted a series of CPD webinars which are available to view at a time to suit you. So if you need to top up your CPD, take a look at the webinars that are still available. All you need is a device to view it on and your headphones! For all the available webinars and to watch on-demand, visit the links detailed below, or you can access them all at: https://events.tenetgroup.co.uk/ADP2019 Date Webinar Link to view 01/03/2019 Virgin Money http://webinars.tenetgroup.co.uk/ webinar-1-2019 29/03/2019 Nat West Intermediary Solutions http://webinars.tenetgroup.co.uk/ webinar-2-2019 31/05/2019 Post Office for Intermediaries http://webinars.tenetgroup.co.uk/ webinar-3-2019 28/06/2019 Shawbrook Bank http://webinars.tenetgroup.co.uk/ webinar-4-2019 27/09/2019 Together Money http://webinars.tenetgroup.co.uk/ webinar-5-2019 25/10/2019 The Exeter http://webinars.tenetgroup.co.uk/ webinar-6-2019 29/11/2019 Precise Money http://webinars.tenetgroup.co.uk/ webinar-7-2019

WEBINARS FOR 2020 Starting in February, Tenet will host 10 webinars on the morning of the last Friday of every month with a single Provider, Fund Manager or Lender which you can view from the comfort of your home or office. You will have the opportunity to view the webinar and interact with the speakers, asking any questions you may have. To help plan your diary for the year ahead, we would recommend booking these at the start of the year. Date Webinar 28/02/2020 Webinar One 27/03/2020 Webinar Two 24/04/2020 Webinar Three 29/05/2020 Webinar Four 26/06/2020 Webinar Five 31/07/2020 Webinar Six 28/08/2020 Webinar Seven 25/09/2020 Webinar Eight 30/10/2020 Webinar Nine 27/11/2020 Webinar Ten To book for the 2020 Webinars visit: https://events.tenetgroup.co.uk/TenetCPDWebinars2020

10 – PROTECTION SPECIAL

80% of people in the UK

have no Income Protection, and almost half have no life insurance

PROTECTION SPECIAL – 11

Why is protection so crucial to have in place? If a client were to lose their job or become unwell, how would they manage their financial commitments and maintain a reasonable standard of living? Sounds a sensible question, but with so many clients not seeing the importance of arranging protection, they leave themselves vulnerable should the unexpected happen. One reason clients don’t purchase protection (alongside their mortgage or investment) is because they believe that they can buy protection online for less than proposed by their adviser. While sometimes cheaper, such cover is typically less comprehensive, and the client risks having a plan that doesn’t cover their needs should they need to claim. Overcoming client objections is key to help them realise the importance of protecting themselves and their families. Key in this is discussing protection at the outset of a financial conversation. This not only highlights the necessity of protection early on in the journey, but also gives the client more time to consider its worth. Leaving it as a last minute add on to the product, e.g. a mortgage or an investment, at the end of the process risks it being deprioritised amongst all the other considerations that need to be considered in making key decisions about their money. Although some clients think ‘It’ll never happen to me’, illnesses and accidents can happen to anybody. No matter how secure they think their lifestyle is. For instance, could your clients live off £94.25 a week, for up to 28 weeks from statutory sick pay? Highlighting this to clients and assessing if they would have sufficient savings in place to meet bill payments can help them realise why income protection should be considered. Therefore, your clients are able to continue with their regular financial commitments. How do you change the conversation?

When clients take more than one product such as income protection or life insurance the “life time value” increases. So, in the short term, although it may take more time up front, ultimately your business is more valuable and your clients are protected should the worst happen. To help you further, we have negotiated good commission rates as part of the protection and GI panels. And crucially with our panel, you are not restricted and we have non-loaded rates unlike some networks. This gives you every opportunity to source the most suitable product for your client. What are the next steps? Recently we reviewed our protection and home insurance offering and are close to signing off an enhanced approach that we will implement across the adviser network. Tenet want to assist advisers increase the number of protection conversations they have with their mortgage clients, as this will ultimately help all parties involved benefit for all the right reasons. We will be working with our top-protection providers as well, utilising their tools, training materials and knowledge in the market place to enhance our offering to our advisers.

We are looking to relaunch our offering via the following: • Tool kits and related marketing brochureware • Greater Technical Services & Research support • Improved extranet guidance and rate sheets • Training (induction and more) – education on the client benefits and efficient processes • Member feedback to help shape the proposition further • Dedicated protection events

What are the commercial benefits of protection?

Watch this space!

Not only does protection benefit the client, but you the adviser, can significantly gain from making protection sales to your clients. On average, our member firms make around £500 per typical protection sale.

12 – INDUSTRY UPDATE

INDUSTRY UPDATE – 13

HOT TOPICS - Royal London comments on the very latest industry developments…

FRC UK Stewardship Code 2020 The Financial Reporting Council (FRC) has re-booted its 2012 Code with what it sees as an important development in driving stewardship improvements across the UK investment industry. The new Code comes into effect on 1 January and remains voluntary but raises the bar in setting a standard much higher than the current UK regulatory requirements. ‘Stewardship’ is the responsible allocation, management and oversight of capital to create long term value for clients whilst leading to sustainable benefits for the economy, environment and society. The 2020 Code contains 12 ‘apply and explain’ Principles for asset owners and managers. Signatories will be expected to take ESG (environmental, social and governance) factors into account in their investment decision making as well as undertaking more rigorous reporting on their stewardship activity. It’s likely that this will establish a clear benchmark for stewardship and that can only be a good thing for the industry at a time when there is an increasing focus on responsible investing.

FCA Retirement Outcomes Review The Regulator published policy statement PS19/1 at the end of January 2019, looking at how they plan to tackle some of the issues they’ve identified in the retirement market. Phase 1 of this Retirement Outcomes Review was introduced on 1 November 2019, with further phases following in 2020. All pension providers must now send customers a new age-based pack at age 50, then every five years until they’ve accessed all their pension savings. These packs are designed to show your clients the value of their savings and any features their pension may have that could affect the decisions they make in the future. This presents an excellent opportunity to engage with clients who receive the new packs. Further phases of the review will follow in 2020. From an adviser perspective, you will be required to consider available pathway investment solutions when assessing suitability for clients investing their drawdown funds. There’ll certainly be a lot of noise about this over the coming months.

PROD Despite being implemented at the beginning of 2018, there remains a huge amount of confusion and discussion around the FCA’s product governance (PROD) rules and guidance. We know that manufacturers (providers and asset managers) have to define the target market for their products. We also know that distributors (advisers and platforms) also have to define their own target market for the products they distribute based on what they receive from the manufacturer and their own client information. PROD 3.3.12 takes this further and explains that these should be identified at an extremely granular level. This naturally leads to discussions around identifying segments for your clients and probably sub-segments as well. That could be segments based on financial life stages or by occupation. It could even be by investment experience or capacity for loss. The essential point here is that there is no hard rule within PROD about how you go about segmenting your client bank. It should be about your clients and their needs and that should help you deliver tailored advice, products and services across your client bank.

Ryan Medlock Senior Business Development Manager

14 – SPECIAL FOCUS

Are you looking to expand your business in the New Year? WE CAN HELP.

What does the service include? We’ll help you define and develop an attractive recruitment proposition to draw the right calibre of people to your business. We’ll also arrange for the role to be advertised and will screen the best candidates to your specifications, recommending the ones which fit your needs. But the thing that makes this service so attractive is that we do all this for members of TenetConnect completely free, saving you up to £5,000 in recruitment agency costs, as well as freeing up your time so you can concentrate on giving advice to your clients.

January can be a great time for taking new advisers and support staff into your business as people consider their New Year’s resolutions and start making positive changes to their development and careers. If you’re looking to expand your business, let us help you take the hassle and cost out of recruiting. We’ll advise you on the best way to get the people you need and organise a strategy to do that, from writing role profiles, advertising and proactive headhunting to vetting candidates on your behalf.

PROVIDER SUPPORT – 15

REDUCING RISK IN RETIREMENT

These are uncharted waters for the financial advice industry. Risks are high – in fact, almost three quarters of advisers say they are higher now than they were five years ago. Only 2% say risks are lower. One third (32%) of advisers have considered selling their business due to the risks.*

What are the key risks for clients? Just as clear are the risks for clients in retirement, risks heightened by factors including the decline of the final salary pension scheme. These risks change over time. When accumulating a pension pot the risks are mainly confined to under funding and/or poor investment choice but at retirement the risks increase significantly. So what are the key risks? • Selecting an unsuitable retirement product • The sustainability of the income being taken • Living beyond the average mortality age • Prolonged low or negative investment growth • Sequencing risk (making income withdrawals when markets are falling). One way to counter these risks is of course to annuitise. Annuitising doesn’t eliminate all risks Even annuitising the pension doesn’t necessarily get rid of all the risks, which include: • The risk of locking into a low rate and low income • The risk of locking into a product that can’t be changed even when personal circumstances may change significantly • The risk of overpaying for inflation proofing which could be achieved through investment growth • The risk of purchasing too early - higher

Is there a solution dealing with all these issues?

income can be achieved at older ages, particularly when health becomes a factor - Purchasing an annuity can be deferred and bought in tranches when deemed better value (rates improve and/or health deteriorates)

The Retirement Account from Canada Life is unique in offering a true blend of guaranteed income and drawdown within one personal pension wrapper. It offers a wide choice of investment solutions, with the ability to adapt as your clients’ investment needs and objectives change over time.

The risks in drawdown can be managed or mitigated to some extent.

How does The Retirement Account help with risk?

• Sequencing risk is potentially the most damaging in producing a bad outcome • Running out of funds prematurely can be managed by ensuring withdrawals are kept at a relatively low level, or are regularly monitored • Living beyond the average mortality age should be a cause of celebration but in financial terms this can be result in an unexpected depletion of funds - purchasing a deferred or fixed term annuity may help manage this scenario • Seeing a prolonged downturn across global stock markets is less likely than seeing one in individual markets such as the FTSE, so having a global portfolio can help mitigate this particular risk • It is possible to protect capital by using protected funds that lock in gains but when stock markets are volatile the fund manager charges can be prohibitive • Protected funds can smooth out gains and losses in the same way as with-profits funds and are popular as they take out the roller coaster type experience most investors dislike

The Retirement Account can help reduce risk is through its access to a range of risk-targeted managed funds. These are designed (as the name suggests) to ensure their long term suitability for the client’s risk profile. Unlike risk-profiled funds, risk-target managed funds are managed to strict asset allocation guidelines, set by independent industry recognised investment specialists. *Source: Survey conducted using Survey Monkey in June 2019 among 185 advisers. Telephone calls may be recorded for training and quality monitoring purposes. 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.

How to get in touch To find out more about The Retirement Account visit www.canadalife.co.uk/adviser/retirementaccount or call 0800 912 9945.

18 – PROVIDER SUPPORT

Steve Bryan Director of Distribution and Sales

Cover for real people from a specialist income protection provider

Creating an income protection policy that’s right for your clients and right on the money is our speciality. We won’t generalise about your clients and their differing needs and wouldn’t dream of designing protection products with a one size fits all attitude. That’s not our style. We are real people designing income protection solutions for real people. We live and breathe protection At The Exeter, our people are protection experts and our ambition is to make protection accessible and inclusive for as many people as possible. Different solutions for different people We take time to understand our customers and use our in-depth knowledge to design products which offer quality cover with flexible benefits. This makes it easy to create a policy to fit your clients’ needs and pockets and means we can protect a wide number of people including: • Manual workers and skilled tradespeople We provide occupation-neutral cover for manual workers and skilled tradespeople with a wide choice of limited claim periods (2 and 5 years) and waiting periods and no standard policy exclusions. • Executive cover We offer specialist cover for office-based professionals and clerical workers. This provides quality cover at a low cost with two premium options; age-costed or level guaranteed. • Self-employed people Our products include a variety of features that can offer reassurance to self-employed people including: cover from day one, continuous cover for up to 3 months between jobs and the option to ‘fix’ benefits to provide certainty for clients with fluctuating incomes. • People with health issues We offer a flexible approach to underwriting with one of the most flexible and fair approaches to people with a high BMI or Type 2 Diabetes.

For more information on our specialist income protection designed for real people, why not organise a webinar or meeting with The Exeter sales team on 0300 123 3207 or email us at sales@the-exeter.com

PROVIDER SUPPORT – 19

The growing shift towards personalisation is driving a tech evolution

Standard Life examines how innovation in technology is helping advisers and investment managers to expand their investment offering and bring more personalisation to more clients. It was the American academic Joseph Wood Krutch who said: ‘technology made large populations possible; large populations now make technology indispensable’. For a man born in 1893, it’s unlikely that he was talking specifically about the advent of platform technology or the impact of regulation such as RDR, MiFID, pension freedoms and most recently, PROD. However, the fact remains that more and more clients require financial planning and investment management for longer. Technology has to be the enabler that will help each client get the outcome they want and need.

Centralisation helps to deliver consistent outcomes for clients, minimise potential risks and improve operational efficiencies within adviser firms to ultimately deliver the increased scalability they need. However, recent regulation has shone a spotlight on client suitability and the accusation of ‘shoe horning’ has reared its head. To be clear, well run and well managed CIPs are excellent solutions for a large number of clients. Nevertheless, a client may have needs that don’t fit within an adviser’s chosen CIP. In other industries, such as retail and telecoms, many clients have come to expect a service tailored to their specific needs, so the opportunity must be there to offer clients a similar investment management service. The rise in personalised investing styles The growth in the popularity of personalised investing styles, such as goals-based investing and ESG-type investments has already had an effect on the dynamics around how clients engage with their portfolios. Some clients are looking beyond measuring the success of their investments in purely

monetary terms and seek investment approaches that take environmental, global sustainability and governance issues into consideration. Thematic investing offers huge potential for advisers who can build a narrative around investment propositions and provide these clients with an investing approach that helps them advance the causes or goals they care about. Moreover, some clients require personalised solutions for professional reasons - such as being unable to hold certain assets due to a conflict of interest. Clients may also have existing assets that they can’t or don’t want to sell. And most clients want to actively manage the amount of tax they pay. However, providing a tailored investment solution and outcome for each client that considers all these areas can be costly and time consuming. Technology is helping the industry change Just as prophesised by Joseph Wood Krutch, technology has to help us service larger populations. As the demand for advice and personalised outcomes increases, your time will become an even greater commodity. Advisers and investment managers will need to be able to depend on a platform partner that is scalable and supports the growth in their business today so they have the time to focus on what matters, but also a platform partner that is preparing for the demands of the future through developments in the technology. Could the next platform technology release be as exciting as the newest smartphone launch? Perhaps. Whatever the future looks like, the changes in technology will enable more clients to benefit from much needed advice.

CIPs offer an excellent solution for many clients

One of the big shifts since RDR has been the advent of centralised investment propositions (CIPs) and in recent years, platforms have developed technology to support managed portfolio solutions.

To find out more about Standard Life Wrap visit www.adviserzone.com

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.

22 – PROVIDER SUPPORT

Ben Constable- Maxwell Director of Corporate Finance

John William Olsen

Manager M&G Global Select Fund and M&G Pan European Select Fund

and Stewardship at M&G Investments

Investing for impact: profit with purpose

Measuring impact It is of course harder to measure environmental or societal returns than financial returns, but this is not to say

Aiming higher Investing for impact is nothing new. Many institutional investors, like pension funds, already target non-financial goals with some of the investments they make to meet their liabilities. It is becoming easier for individual investors to follow suit. Embracing companies’ relationship with society and the environment creates a new strategic lens through which investors can evaluate the prospects – and ultimately the success – of investments. By looking at the bigger picture, beyond traditional metrics of success, we believe investors can aim higher. The value of the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested. For more information, please visit mandg.co.uk/adviser/positive- impact-fund For financial advisers only. Not for onward distribution. No other persons should rely on any information contained within. This financial promotion is issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority in the UK and provides ISAs and other investment products. The company’s registered office is 10 Fenchurch Avenue, London EC3M 5AG. Registered in England and Wales. Registered Number 90776.

How can we aim to achieve a positive social and environmental impact with our long-term investments? There is a spectrum of approaches to responsible investing, from excluding companies that fail certain criteria, through full integration of environmental, social and governance (ESG) factors in the investment process, and up to strategies that target specific sustainability-oriented themes such as renewable energy. If non-financial goals are as important to you as financial returns, you can explicitly target investments that also deliver positive change for society or the environment. This is generally referred to as impact investing. Pragmatism, not idealism Like any approach to responsible investing, investing for impact should not be confused with charity. The objectives of impact investing are financial, as well as to deliver shared returns for society or the environment. In our view, there can be compelling investment opportunities where companies deliver a positive impact on society. Many stand to profit from tailwinds where their businesses align with sustainability trends, such as growing demand for responsibly sourced goods. We believe it can therefore be a pragmatic choice, not an idealistic one, to help address environmental and social challenges by investing in companies that can demonstrate impact. This could be through pioneering products or services, by driving sustainability improvements in their sector or even by providing other companies with the tools to deliver impact.

we can’t. As with any metric of performance, we need a robust framework for gauging impact.

The UN Sustainable Development Goals, which set targets for addressing the world’s most pressing sustainability issues, can help investors in this respect. They can only take us so far – impact investors have to apply rigour in their own approach and analysis – but the Goals articulate common principles for an economic model that recognises the value of a clean environment and of an equitable and healthy global society. The positive impact of an investment can, generally speaking, be assessed by analysing how a company performs against any of these 17 Goals. For instance, a healthcare company could contribute towards Goal 3 – “ensuring healthy lives and promoting wellbeing for all” – if its medicines alleviate or prevent illness. The company’s positive impact in this sense would be defined by its reach and the effectiveness of its treatments. Impact investing is to some extent defined by the ability to measure an investment’s environmental or societal impact, but lack of disclosure by companies can hamper these efforts. This is a developing area and one of the roles investors can play is to encourage investee companies towards greater transparency in disclosing their impacts on society, both positive and negative.

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