“getting in to bed with accountants” paul lothian ba (hons), fpfs, acii, cfp cm chartered...
TRANSCRIPT
![Page 1: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/1.jpg)
![Page 2: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/2.jpg)
“Getting in to bed with Accountants”
Paul Lothian BA (Hons), FPFS, ACII, CFPcm
Chartered Financial Planner
Director, Verus Wealth and A2+B Wealth
![Page 3: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/3.jpg)
How to engage accountants formally and maximise the value of the relationship . . .
• Why bother engaging with accountants?
• Formalising the relationship
• Maximising the impact and adding value
![Page 4: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/4.jpg)
is a joint venture with: is a joint venture with:
![Page 5: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/5.jpg)
• Established 2005• 50/50 ownership split• 2 advisers plus 3 staff• 85% recurring income• C 120 clients• AUA C£55M• Typical AUA per client = £200,000• 35% of income attributable to client
referrals from JV partners
• Established 1933• Two offices (Dundee and Montrose)• 5 partners• 33 staff• Turnover C£1.6M
![Page 6: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/6.jpg)
• Established 2011• 40/60 ownership split• 2 advisers plus 3 staff• 35% recurring income• C 30 clients• AUA C£17M• Typical AUA per client = £400,000• 95% of income attributable to client
referrals from JV partners
• Established 1992• 13 partners• C150 staff• Turnover C£18M
![Page 7: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/7.jpg)
Surrounding A2+B Wealth
VAT
Personal
Tax
Payroll
Outsourcing
Finance
EETS!
Corporate
Tax
Corporate
Finance
Audit
Accounting
Services
Wealth
![Page 8: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/8.jpg)
Directly authorised
Appointed Representative
![Page 9: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/9.jpg)
Why bother engaging with accountants?
• Unlike most solicitors, accountants see most of their clients on a regular basis
• They are ideally placed to identify client needs/ planning opportunities• They understand and appreciate the value of good financial planning and
investment management• Their clients are used to paying fees for professional services• Many accountants used to offer financial advice (pre-FSMA 2000) but no
longer can• There is great deal of “crossover” between what accountants do for their
clients and what financial planners do for clients• Joint consulting opportunities (especially in the corporate and Trustee
space, but also to provide “family office” services)• Your knowledge and expertise WILL increase!/ CPD
![Page 10: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/10.jpg)
Why bother engaging with accountants? (continued)
• Joint seminar opportunities (eg Corporate tax compliance matters along with Business Protection, Auto-enrolment etc)
• “Symbiosis” – planners and their clients will also benefit from having the accountants’ expertise and services “close to hand”
• Accountants value the convenience of having financial planning experts close to hand
• Referrals generally come with trust and respect already a “given”
• Increase your “professional standing” by association
• Be introduced to their professional connections as well as their clients
• Professional introducers who could have a financial incentive to actively refer business, regardless of referrals being made in the opposite direction
![Page 11: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/11.jpg)
“Our books are balanced. 50% of the numbers are real and 50% are made up!”
![Page 12: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/12.jpg)
Challenges• The accountant “archetype”
![Page 13: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/13.jpg)
Thinking
Feeling
ExtravertIntrovert
Interactive Exercise!
![Page 14: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/14.jpg)
ExtravertedThinking
IntrovertedFeeling
Extraverted Feeling
Introverted Thinking
![Page 15: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/15.jpg)
ExtravertedThinking
IntrovertedFeeling
Extraverted Feeling
Introverted Thinking
![Page 16: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/16.jpg)
On a good day…
CompetitiveDemandingDetermined
Strong-willedPurposeful
SociableDynamic
DemonstrativeEnthusiasticPersuasive
CaringEncouraging
SharingPatientRelaxed
CautiousPrecise
DeliberateQuestioning
Formal
![Page 17: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/17.jpg)
On a bad day…
AggressiveControlling
DrivingOverbearing
Intolerant
ExcitableFrantic
IndiscreetFlamboyant
Hasty
DocileBland
PloddingReliant
Stubborn
StuffyIndecisiveSuspicious
ColdReserved
![Page 18: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/18.jpg)
Challenges• The accountant “archetype”
• Differences in “Corporate Culture”
• (some) CA’s perception/ pre-conception of IFA’s
• Accountant’s existing IFA connections
• Fees: ad-valorem not favoured by many CAs
• Generally reactive rather than proactive
• Partner buy-in/ support varies
• Can be “protective” of client bank
• Aligning with the CA’s practices/ staff policy etc
• Level and nature of CA firm’s involvement in strategy/ business management
• “Fair and equitable” division of profits
![Page 19: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/19.jpg)
Joint Venture Considerations• Chartered Accountants and/or Solicitors?
• Preferably with no existing financial planning offering
• Firm size? – 5 partners : 1 planner
• Format:• Introducer arrangement?• New service offering (branding)?• New company?• On-site or off-site?
• FSA authorisation e.g. AR or direct?
• Incorporated or partnership/ LLP?
![Page 20: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/20.jpg)
IFA Ltd Accountancy Partnership
NEW CO
Holding Co.
(or LLP)
Shareholders in IFA
AR of IFA or directly
authorised?
![Page 21: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/21.jpg)
• Chartered Accountants and/or Solicitors?• Preferably with no existing financial planning offering
• Firm size? – 5 partners : 1 planner
• Format:• Introducer arrangement?• New service offering (branding)?• New company?• On-site or off-site?
• FSA authorisation e.g. AR or direct? • Incorporated or partnership/ LLP?
• If on-site, rent/ management charge (what’s included?)
• Directors/ Board members?
Joint Venture Considerations
![Page 22: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/22.jpg)
Joint Venture Considerations continued
• Shareholding structure (eg “alphabet” shares)
• Equity participation
• Profit share formula/ mechanism
• Costs control
• Exit strategy/ mechanisms
• Valuation of shares on leaving (Good leaver/ bad leaver)
• Restrictive covenants. (Who owns the client relationship?)
• Capitalisation (eg equity and /or loans)
• Principal’s contract for services / contract of Employment
• Principal’s remuneration / flexibility
![Page 23: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/23.jpg)
“Explain to me again why enjoying my life when I retire is more important than enjoying life now.”
![Page 24: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/24.jpg)
The Approach
“Dear Mr Accountant,
If I can show you a way that your firm could:
- Increase its revenue and profit
- Build a valuable business with high levels of recurring income
- Widen your firm’s service offering / add an extra dimension to your portfolio of services
- Provide a service that is highly appreciated by individuals and companies
- Increase your clients’ loyalty / “stickability”
- Improve the visability / oversight of the quality of financial planning and investmentadvice your clients are receiving
- Provide opportunities for collaboration and joint marketing initiatives
Would you be interested?”
![Page 25: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/25.jpg)
The proposal stage
• Make a business case (why should the accountants consider doing it? – “WIIFM?”)
• Have a clearly articulated client service proposition(including an investment “philosophy” and basis of fees/ charges)
• Have letters of commendation/ client testimonials
• Suggest that the key decision maker(s) becomes a “client”
• Business plan
- What will the business do? (Purpose). What’s its “USP”?
- For whom? (Target markets)
- How?
- Projected P/L and cash-flow for 3 years
• Marketing plan (more detail on how the business plan will be achieved)
- Internal and external marketing strategies
![Page 26: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/26.jpg)
The proposal stage (some tips for dealing with “Cool Blue” energy)
• PATIENCE IS REQUIRED!
• DON’T APPEAR PUSHY
• PROVIDE DETAIL
• BE PREPARED/ ORGANISED
• BE PUNCTUAL
• DELIVER WHAT YOU PROMISE (ON TIME)
• KEEP IT FORMAL and “BUSINESS-LIKE”
![Page 27: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/27.jpg)
Maximising the Impact and Adding Value • Client seminars
• Internal knowledge briefings
• Client mailers/ e-mailers
• Client segmentation/ information “mining”
• Seek introductions to their professional contacts
• The service should be part of their client “on-boarding” and review processes
CREATE ADVOCATES:
• Staff pension scheme, DIS, BUPA, Denplan etc
• Partners should be encouraged to become clients of the service (at discounted rates!)
• Actively encourage clients to recommend you to others
COMMUNICATION IS KEY:
• Regular group meetings and “1-to-1s” with partners/ managers
• Regular and frequent client “touch points”
![Page 28: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/28.jpg)
Hear it from the horse’s mouth!
“Financial advisers looking to have clients referred to them by accountants should exhibit the highest professional standards and all that that entails: technical knowledge and expertise, advanced-level qualifications, discretion, integrity, fair and reasonable fees, proper management of any conflicts of interest, professional communications and an adequately-resourced service proposition. They should ensure that they can deliver what they promise. In essence, they must demonstrate that they are worthy of the trust of other professionals and their clients.”
Michael Brown Founding and Managing PartnerAnderson, Anderson & Brown LLPChartered Accountants
![Page 30: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/30.jpg)
THANKS FOR LISTENING!
![Page 31: “Getting in to bed with Accountants” Paul Lothian BA (Hons), FPFS, ACII, CFP cm Chartered Financial Planner Director, Verus Wealth and A2+B Wealth](https://reader035.vdocuments.us/reader035/viewer/2022062714/56649d015503460f949d4670/html5/thumbnails/31.jpg)