Around the worldIntroducing the Lark FI Travel Insurance policy.

In the hot seatWe put Nick Hungerford, Founding CEO of Nutmeg,

in the hot seat to answer our questions.

FILARK FINANCIAL INSTITUTIONS

MADE TO MEASURE

FINANCIAL INSTITUTIONSINSURANCE

MADE TO MEASURE

To discuss your insurances, contact:

Martin Camp020 7543 2806

martin.camp@larkinsurance.co.uk

WWW.LARKINSURANCE.CO.UK

Welcome to the fourth edition of Lark FI. In the last edition of the magazine, I said that the second half of 2014 would prove a busy and exciting time for Lark FI and the team involved. This has proven true and I am delighted to welcome another 30 financial institutions to the ever expanding Lark FI proposition. We now have in excess of 130 financial institutions that we are pleased to have as both new and longstanding clients.

Of course we are looking to develop this further and for me a key part of this is to demonstrate that we are able to negotiate tailored benefits that add real value to customers and prospects alike. I believe we have done this with the Lark exclusive arrangements with AXA PPP, as referred to in this edition, being a great example.

I am pleased that we have continued this trend by now launching the new Lark FI travel benefit. This is a truly exclusive arrangement Lark have negotiated with RSA Group. I am confident that the extent of cover available, coupled with a proven first class claims service, will be of huge value to any company where staff undertake foreign travel. The usual exclusions simply do not apply, the price is extremely competitive and we can include private travel for employees and their families.

We are continuing to investigate other meaningful additions to our Lark FI product range and we are hopeful we can offer further, and additional, bespoke cover options in Q2 of 2015.

Aside from product development we have held another Lark FI event in February of this year as well as the Supper Club in May. We will definitely host another event in 2015 and are putting together the finishing touches for the January 2015 Supper Club, which we will host at Boisdale. For more information on this exciting venue refer to page 18 of this edition. I can definitely vouch for the Macsween’s haggis and noggin!

In the last edition of our magazine, I closed by saying that I hoped the Lark FI team would get the opportunity to speak to as many of you as possible about our tailored insurance product range and risk management solutions. This remains our goal into 2015 and beyond.

Finally, I hope it is not too early to wish everyone an excellent festive break as well as a healthy and productive 2015!

Mark WoodwardMD Corporate Client Division

Lark (Group) Limited

@larkinsurance Lark (Group) Limited

ISSUE FOUR, 2014

18/19Feast your eyes

20/21In the hot seat

22/23Pension Freedom

25New endeavours

26/27Ask the experts

CONTENTS

6/7 Around the world

8/9The art of corporate collections

11Meet the team

12/13The global insurance programme

14/15Thirst-quenching investment

16/17Well-being initiative

MARTIN CAMP, Head of New Business at Lark, introduces the new Lark FI Travel Insurance policy.

Until 2010, Eyjafjallajökull was a little known volcano in Iceland. However, once it erupted in August of that year it became world famous for all the wrong reasons, after causing the largest air-traffic shut-down since World War II.

The closure of the airspace left five million travellers stranded around the world, of which up to a million were British, according to ABTA.

To make matters worse, travellers were dealt a further blow when the majority of insurance policies refused to pay out on claims.

The recent threat of an Icelandic volcano erupting again sent a trickle of fear through those who had experienced the travel chaos before but, fortunately, it seems as if a full scale eruption is off the cards for the time being.

Eyjafjallajökull is just a very high profile example of one of the perils of travelling and the potential disruption that can occur, and there are also many other issues that travellers could face.

Without the right insurance, these incidents can be even more stressful.

We understand that people are a company’s greatest asset. The duty of care to ensure their safety and wellbeing is more than just a legal duty, and the help we can provide is more than just financial recompense after the event.

Business travel is an important part of everyday life. Worldwide, there are 445 million business trips* carried out each year.

Arranging insurance on an individual basis can be an administrative nightmare, not to mention a costly way of doing things. A group travel policy can be much more practical and cost effective, as well as providing you with peace of mind that your staff are protected.

With all this in mind, we knew that we needed to create something special for our clients, and we are delighted to announce the launch of the Lark FI Travel insurance policy.

WHAT mAkES OUR pOLICy SpECIAL?

For starters, Royal & Sun Alliance is the Insurer behind this policy, and are an extremely experienced Travel insurance provider who we have been working with for many years. Our policies with Royal & Sun Alliance was one of the only ones that paid out claims for the Eyjafjallajökull incident in 2010, and we have enhanced the policy even further for our Lark FI clients.

Cover is rated on the number of trips as opposed to the individuals themselves, meaning that you don’t have to tell us every time there is a change in personnel. The only time we’d need to know is if the number of trips increased or decreased significantly from the estimates provided during the policy period. This makes things much simpler in terms of administration.

We’ve created a policy that covers not only business trips, but also leisure trips, not just for directors or partners – but for all employees.

Why else is the policy special?— Nil Excess applicable

— Travel anywhere in the world (where legal to do so) is covered – there are no excluded territories

— Express claims service: small baggage claims are settled in 24 hours, meaning minimum interruption and inconvenience to the traveller

— There are no excluded activities, such as winter sports, which are typically excluded under most policies

— Pre-Travel medical advice is included

— 24 hour assistance anywhere in the world is provided as standard, giving you medical and security advice when you need it

— Full medical expenses and assistance cover while travelling is provided as standard – no pre-existing conditions exclusion

— Still need treatment when you’re home? In-patient and out-patient treatment incurred upon return is covered.

Capita Global Assistance (formerly known as FirstAssist) and Drum Cussac provide advice and security services to the policy too.

Capita employs a highly experienced multilingual team of specialists to provide travellers with the highest quality of advice, support and assistance, and an immediate response.

Prior to travel, Capita Global Assistance is there to help with the following advice:

— Pre-travel medical advice, including health matters and inoculation requirements

— Customs regulations

— Visa requirements and procedures

— Essential travel information storage

— Currency limits and rules

— Banking procedures and hours.

Around the world

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While travelling, Capita Global Assistance’s dedicated in-house team of doctors, nurses and case managers are on hand 24/7 to:

— Ensure the traveller receives the best medical treatment in the event of falling ill or suffering bodily injury

— Guarantee costs and settle direct where possible with the medical facility so the traveller only has to worry about recovering from their injury or illness

— Arrange and support the medical repatriation to the customer’s home country

— Provide assistance in liaison with the carrier on location of lost luggage items.

Drum Cussac offer a wide range of services to meet the full spectrum of travel and personal security challenges. They help travellers prepare for a safe journey and provide access to 24/7 security advice, together with an emergency response capability in the event of a crisis.

Prior to travel, Drum Cussac are there to help with the following:

— Access to Drum Cussac’s online Global Risk Monitor (GRM) platform providing detailed country and city reports for travellers

— The GRM also sends global security alerts by email.

While travelling, Drum Cussac’s in-house expert crisis management and response consultants are on hand 24/7 to:

— Coordinate and execute the evacuation of the traveller in the event of a non-medical emergency from any cause including natural disaster, terrorist attack or life-threatening situation

— Provide in-country assistance and deployable resources in support of, and in response to, any emergency situation.

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As well as the cover being so extensive, our premiums are extremely competitive. We’d be delighted to discuss our policy in more detail, so please do get in touch

Martin Camp020 7543 2806martin.camp@larkinsurance.co.uk

* Source GBTA Global Business Travel Association 2012

CLAImS EXAmpLES

Delayed BaggageStanding by an empty luggage carousel, one traveller had the unnerving realisation that he had made it to his destination but his suitcase wasn’t anywhere to be seen. The airline advised his baggage would be with him the next day but with a business meeting later that afternoon and no suit, what was he going to do?

After a call to the Claims Team, he was assured that under the delayed baggage section of cover, he would be able to claim for the cost of a new suit. He bought a new suit, had a successful business meeting and was reimbursed for the costs upon his return to the UK.

Stolen PhoneAnother traveller had the misfortune of being a victim of a pickpocket whilst on business in Milan and found that his phone had been stolen. Within 24 hours, his claim had been confirmed, settled and he was in a position to replace his phone and reconnect to family and friends.

Global CoverageWhen 20 employees from three of our global customers were caught amid escalating violence in South Sudan, we helped.

Together with our security and medical assistance providers, an emergency action plan was swiftly in place – first assessing the safety of the personnel, then reviewing options for evacuation, so flights could be chartered.

In partnership, we secured an aircraft to carry customers to safety in Kampala. From there, we coordinated their onward travel to their home countries.

THE ART OF CORpORATE COLLECTIONS

The history of corporate art collecting reaches as far back as the Renaissance. Some of the best collections in the world are those held by companies, and businesses of all types and sizes are increasingly expressing an interest in building their own corporate collections. But what makes a good collection? How should a company go about building one? What potential problems or mistakes are to be avoided? Here, VICTORIA PRESTON & SARAH SCHUSTER of Cultural Capital Consultancy explore a few key considerations in corporate collection building.

WHy COLLECT?

Any company considering starting a collection should first consider what its main motivations are for doing so. What does it hope to achieve? What impact will the collection have on the business? A collection may be viewed as a philanthropic endeavour, focused on supporting artists; it may be a means of engaging and building relationships with clients; it may be a commitment to encouraging creative thinking and enhancing the well-being of employees within the office environment; it may stem from an owner or CEO’s personal interest in art. Regardless of the reasons, it is crucial that the impetus and goals for a given collection are established and understood, as they will shape both the process of building it, and the collection itself.

COLLECTION STRATEgy

Works of art do not exist in a vacuum, and a company’s collection should reflect its particular interests, business ethos, and impetus for creating the collection. Whether that is manifested through artworks that address specific themes, artists who hail from particular parts of the world in which the company operates, or works of a certain time period or medium, the strongest and most interesting collections are those that are compiled with a clear and well defined curatorial strategy. Without a strong strategy, companies may find themselves having spent a great deal

of money on a disparate selection of objects that lack any coherence as a collection, and fail to fulfill the objectives that motivated its initial creation.

pROFESSIONAL AdvICE

Depending on the size of both the company and the art collection, some companies employ a team of in-house curators, others engage external art advisors to help build and manage their collections. Whether a full-time employee or an external consultant, an advisor will perform several key functions, such as developing a curatorial strategy to fit the company’s requirements, researching, sourcing and presenting works for possible inclusion in the collection, managing negotiations and acquisitions, overseeing the installation and ongoing care of the collection, and a host of other duties.

One of the most common mistakes made by companies is thinking that it is not necessary to engage an art professional. They decide instead to appoint a group of executives or employees to build the collection – and quickly learn that “collecting by committee” invites disastrous results. A company would never allow their curator or art advisor to prepare the annual corporate accounts. Equally, it should not expect a team of managers or accountants to possess the professional skills and knowledge required to acquire and care for a high quality art collection.

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THINkINg AHEAd

Another common mistake made by companies is viewing collecting as a finite process – an advisor is hired, a collection is acquired and installed, and the project is finished. In fact, art collections are not static entities. Curatorial strategies may shift as the collection moves from the theoretical to the physical stage, or as it grows over the longer term; changes in company culture, ethos, location or expansion may affect the collection in various ways; or the collection itself may prompt changes due to employee and client engagement with it. On a purely practical level, art collections require a great deal of ongoing care and management. Documentation, insurance, conservation, installations, storage and other logistical considerations must be attended to on a regular basis. Companies may face financial difficulties if a long-term budget for care is not established from the outset.

***Building an art collection can be an extremely positive thing for a business to engage in, but it is not to be taken lightly. A well-informed and fully committed company, working in conjunction with a professional advisor, is the best recipe for building a truly excellent collection that will stand the test of time.

***Cultural Capital Consultancy is an experienced, independent provider of art advisory services, specialising in Collection Strategy, Curating and Art Wealth Management for private and corporate collectors. www.culturalcapitalconsultancy.com

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ADVERT

HIgH NET WORTH HOmE INSURANCE

MADE TO MEASURE

To discuss your insurances, contact:

Gregory Tighe020 7543 2835

gregory.tighe@larkinsurance.co.uk

WWW.LARKINSURANCE.CO.UK

11

Each issue, we’ll be introducing you to a different member of the Lark FI team. This time, it’s the turn of MARTIN CAMP, Head of New Business.

ABOUT my ROLE

I have the great privilege of leading the Lark FI New Business team. My role is to ensure that we have a strong working relationship and full understanding of our client’s business so that we can provide insurance and a risk management proposition that truly meets their needs and requirements.

A NORmAL WORkINg dAy

The great thing about my job is that there isn’t a ‘normal working day’ - everyday is different with a new challenge.

OUTSIdE OF WORk

Outside of work, I am kept busy with my two young daughters, Ella, 11, and Millie, 8. As a family, we love camping in the summer and skiing in the winter. I really enjoy travelling, in particular, city breaks!

A LIFE WITHOUT INSURANCE

A life without insurance? I’m not sure there is one!

The reason I love my job so much is that I have the benefit of getting to learn about various business sectors and industries. Also, meeting new people and developing relationships with them is very rewarding.

If insurance didn’t exist any more, I would probably be involved in business consultancy/training.

my CAREER AT LARk

I started my life with Lark in 2000 when I accepted a role as a New Business Executive and I knew instantly I had made a great decision.

Lark is a family run business and I was immediately made to feel part of that family. I was introduced to the Financial Institutions side of the business as soon as I joined, back when our facility was known as IALOB (Insurance Association for London Overseas Banks). I had the privilege of working with companies who remain Lark clients 14 years later.

mEET THE TEAm

VITAL STATISTICS

Job Title: Head of New Business

Joined Lark in: 2000

Responsible for growth and development of the Financial Institutions scheme, concentrating on building long standing relationships with our clients.

THE GLOBAL INSURANCE PROGRAMMEIt’s almost a given now that companies either trade, or desire to, on a global basis. For those that are doing so, there is an increasing necessity to have some representation overseas, if they haven’t already.

For many companies, if they have locations overseas, they will insure these separately. However, a better option could be to consolidate the programme into one global policy. Lark have much experience in putting together global insurance programmes from working with our existing global clients, as well as from being one of the nominated brokers for Chubb in respect of the local placements of their overseas controlled programmes.

Here, ELOISE ELLIS, Development Executive at Lark, talks about the key things to consider when thinking global…

THE ‘mOdEL’ gLOBAL INSURANCE pROgRAmmE

The model structure and aim of any global insurance programme is to ensure that each exposure in each territory is insured adequately and compliantly, ensuring that local legislation and regulation is adhered to and followed.

Additionally, due to the favourable insurance market in the UK where cover levels tend to be superior than that provided overseas, the model structure should seek to provide uniformity of cover across all territories.

Decisions need to be made about whether insurance placements are made via the Admitted or Non-Admitted route and this all depends on a number of factors, but mainly based on local legislation, type of cover required/necessary, level of risk and cost.

The model structure can therefore be summarised into three key requirements:

1. Providing adequate and compliant cover for all territories, bearing in mind local legislation/requirements.

2. Providing uniform levels of cover across the programme.

3. Local representation dependent upon need.

1. AdEQUACy OF COvER - AdmITTEd v NON-AdmITTEd INSURANCE

Non-Admitted insurance placement is essentially a policy issued in one country (for our purposes, the UK) that covers exposures and risks in another. With Non-Admitted insurance, no local policy is purchased, with the UK Insurer agreeing to extend the UK policy to cover the overseas risks. For this reason and the fact that cover levels here in the UK tend to be more favourable than elsewhere, Non-Admitted insurers can provide insurance cover and indeed level of rating that Admitted Insurers cannot.

Regulations differ from country to country and as such, Non-Admitted insurance is not permitted in all territories, with certain countries wishing to retain as much of the insurance (cover, premium and taxes) locally as possible. The issue and decision between Admitted and Non-Admitted is even more complex due to some countries allowing Non-Admitted insurance, although still requiring payment of local taxes for the proportion insured locally.

With Admitted insurance placements, a local policy is purchased, in local language with a local premium and tax charged and collected. An Admitted Insurer is authorised to trade in that country and for territories such as the US, this provides the Insured with certain State-backed assurances on cover if the insurer was to fail financially.

Additionally, with Admitted insurances, claims are handled and settled locally, which has preferable tax implications.

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13

Fundamentally, the decision on whether to place covers and exposures on an Admitted or Non-Admitted basis will be largely dictated by (a) what local legislation will allow and (b) need.

As you can see, it’s not straightforward. Admitted placements are certainly more compliant, clean and orderly, although Non-Admitted placements can provide superior cover, flexibility and rating.

2. UNIFORmITy OF COvER

As already mentioned, the level of insurance cover available from country to country differs greatly. In the UK, we typically have access to superior products, cover levels and capacity. This by itself and if left untouched, produces an insurance programme where the level of cover and protection is solely dependent upon the territory as opposed to need.

To counter, the model insurance programme will contain a DIC/DIL (Differences In Conditions/Differences In Limits) endorsement on the UK Master Policy. This has the effect of ‘plugging the gap’ between the cover provided by the local paper/policy and the level provided under the UK Master Policy which, as previously advised, tends to be superior.

3. LOCAL REpRESENTATION

In the event of a loss in any one of the insured territories, dependent upon the structure of the business and overseas operations, local representation may be required. The representation would need to understand the local culture, environment, legislation and regulation. When we mention local representation, we are typically focusing on:

1. Compliance – does local legislation dictate that an authorised/approved Broker is necessary?

2. Day-to-day servicing/support and issue of local policy documentation.

3. Claim response.

SUmmARy

In summary, what is right for one business is not right for another, even if both businesses are deemed to be ‘global’. In essence, you can have two separate businesses, with an identical global footprint with both needing a different structure of insurance programme.

There are a number of factors to consider:

1. Domicility.

Is the overseas operation or subsidiary domiciled and incorporated in that particular territory?

2. Control/Management Structure.

Where is ‘control’ required or where are decisions made? Do Head Office/Parent want decisions to be made locally or made at Head Office level? Does the local subsidiary operate autonomously, having control over its own contracts and projects?

3. Size/Type of Overseas Operations/Subsidiary

The size of overseas operation will also be a deciding factor. Is the local operation a sales or satellite office with low values insured/low exposure or is it a stand-alone operation functioning at same/similar level as Head Office/Parent and sister operations?

4. Jurisdiction of Contracts

Are contracts between the end client and the overseas operation/subsidiary or between the client and Head Office in the UK? Jurisdiction of contract can dictate whether a local paper is required or not (notwithstanding local regulatory requirements).

We have talked about the model structure and that which is typically seen for global insurance programmes. Summarised, this is a programme that provides:

1. Adequate and compliant cover for each overseas operation, factoring in local regulation/legislation.

2. Uniformity of cover for each overseas operation. As mentioned previously, the purpose of the DIC/DIL (Differences In Conditions/Differences In Limits) provision seen in most global insurance arrangements is to essentially increase the level of insurance cover on overseas operations to that which is enjoyed here in the UK. This also simplifies and provides clarity on what is and isn’t covered under the insurance programme. The need for a DIC/DIL comes when a global insurance programme is segmented to cater exclusively for its own territory (UK insurance policy covering UK only, France insurance policy covering France only, etc).

3. Appropriate level of local representation for each overseas operation dependent upon need, size, function and indeed the management structure of the business.

4. The best solution possible, taking into account the above three considerations and programme cost.

For more information or to discuss your insurance requirements, please contact:

Eloise Ellis020 7543 2823 eloise.ellis@larkinsurance.co.uk

DICK BURGE, Wine Specialist for Sworders Fine Art Auctioneers, explores why investing in wine is so popular.

Over the last twenty years, wine has become a truly global product, particularly in the emerging markets. More and more people are drinking wine, so the appeal of this, as an investment vehicle, is fairly obvious.

What is not so obvious is the volatility of the wine markets. An an example to illustrate this, Chateau Lafite (probably the best known of the First Growths of Bordeau) had a steep escalation in price for several years until the 2008 vintage had reached the giddy heights of £14,000 for a case of twelve bottles by 2011. Investors would have made a lot of money if they had been wise (or lucky) enough to sell at that time. In fact, many Investors were continuing to buy. Unfortunately for those people, within six months the price had tumbled to £7,500 per case and since then, has continued to fall albeit at a more leisurely rate, so that at the moment, it has settled down to £5,000. Opinion is fairly evenly divided now as to the future price movement, but I would think that any movements over the next year of so would be more gentle.

I have used Lafite 2008 as an illustrative example, and it has, admittedly fallen rather more than most. Probably the greatest difficulty in anticipating the volatility in the wine market is the complexity of issues that contribute to this. On a buoyant market, for example the period before mid 2011, many new investors were persuaded to jump onto the bandwagon, largely through wine

investment schemes, often promoted by people with a limited knowledge of the wine market, attracted into it also by the bandwagon effect. At that time, I seemed to be inundated by calls from such enterprises, who clearly thought that I was wrong to reject their advances! Many of these schemes have collapsed, leaving their investors out of pocket and others are doing the market no favours as they attempt to off-load their holdings. Even in a successful market, a lot of these schemes can be very expensive because of the management costs involved.

Individual wines can also go out of fashion with buyers – Asian buyers were largely responsible for the demand for top quality Bordeaux wines up to mid 2011, and then interest waned, and prices accordingly.

Other factors affecting prices are the availability of wines – a succession of abundant harvests will probably depress prices, whilst some low-yield years could have the opposite effect. The quality of a vintage is also a determining factor. 2013 Bordeaux wines were generally considered to be mediocre and yields were small. Most Bordelaise attempted to keep their ‘en primeur’ prices at 2012 levels and, as a result, the campaign was a pretty spectacular failure which had a negative effect on the whole market.

Other factors are even more difficult to foresee, for example about a year ago the Chinese government cracked down on corporate gifts to government officials – this has certainly reduced demand. Exchange rates can affect pricing, as can other economic factors.

Despite all of the above, some investors have made a lot of money out of wine investments, but usually when they have held the wine for several years – at least ten I would think – and patience is a great virtue in this circumstance. Also, unless you are fortunate enough to have your own cellar, wine has to be stored in a reputable warehouse, and this will cost you £8-12 per year for each case. Incidentally, if you do store in your own facility, leave the wine in its original wooden case, otherwise re-sale values will be less.

Over the last five years, wine investments would have appreciated by about 25%. Over that same period, the Footsie 100 appreciated by nearly 50%. On top of that, wine pays no dividends!

So, if you are determined to invest in wine, do buy through a reputable wine merchant and, above all, follow what I consider to be the golden rule - “only invest in wine if you are happy to drink it for what you paid for it”. After all, wine is meant to be enjoyed!

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ABOUT DICK BURGE

finewine@sworder.co.uk

Dick has been in the Wine industry for thirty, selling his independent wine importing business eight years ago. He is non-executive chairman of a large regional wine merchant and has been associated with Sworders for three years.

Thirst-quenching investment

WELLBEINg INITIATIvES

2. Improved staff retentionIf companies can retain existing staff, they not only save on the cost of recruiting a replacement person, they also save on the indirect costs such as management time spent in dealing with ill health in the workplace.

3. Better Employee EngagementEmployees whose physical and psychological wellbeing is good demonstrate higher commitment levels than less healthy staff. Healthy workers are engaged workers, and engaged workers provide better customer experiences, with a flow through to profits and productivity.

4. Reputation ElevatedHow an employer treats their people is important to potential recruits. Organisations that demonstrate a caring approach, including one that supports the wellbeing of staff, are more likely to attract, and retain, good people, as well as benefit from the wider impact of bolstered corporate reputation.

5. More Resilient Employees The workplace is a fast-paced, changing environment and employees need to be fit and healthy to cope with changes. Data now flows more quickly and deadlines are tighter, employees need to be able to respond effectively to these pressures. If companies make efforts to boost their employees’ resilience, they are less likely to see staff absence levels increase in times of extra pressure or stress.

DR CHRIS TOMKINS, Head of Proactive Health at AXA PPP healthcare, discusses the benefits of wellbeing initiatives in the workplace.

The nature of ill health and work is changing and whilst many UK workers are not ill, they may certainly not be healthy. One in six UK workers is dealing with a mental health problem according to leading mental health charity Mind. Obesity is increasingly prevalent and Diabetes UK warns that five million people are expected to develop the condition within two decades.

At the same time, the workforce is ageing, with the CIPD predicting that by 2020 over two thirds of the UK’s workforce will be over 50 years of age.

In the past, wellbeing initiatives have been seen as an adjunct to health and safety activities, and in some cases were little more than a perk. However, employers now seek wellbeing initiatives that help employees to stay fit and contribute to productivity improvements.

BENEFITS OF WELLBEINg INITIATIvES

1. Reduced Sickness AbsenceA healthy workforce should have a lower sickness absence rate, which leads to cost saving in terms of having to find additional staff to cover the absence. Additionally, companies can work to negate the potential for missed opportunities through the customer receiving a less polished experience.

LARk FI’S vIEW

Melanie Woodward, Divisional Director at Lark comments, “Lark’s exclusive arrangement with AXA PPP healthcare provides our FI clients with access to the insurer’s “Employee Health Gateway” service. This is a confidential health management system, which will encourage and help your staff take better care of their physical and mental well-being - and has been proven to deliver meaningful savings, in terms of employee absence/sickness management costs.

Unlike many medical insurers’ websites, which only provide health information in a re-active manner - the AXA PPP healthcare system responds intelligently to each users’ needs - using “smart technology”.

The Employee Health Gateway system is normally only available to large employers - but for Lark FI clients insured with AXA PPP healthcare, our exclusive arrangement will provide your staff with access to the system at no additional cost.”

For more information about Lark’s FI Healthcare product, please contact:

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Melanie Woodward020 7543 2845melanie.woodward@larkinsurance.co.uk

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BOISDALE CALLING ALL BON VIVEURS

Live music, excellent food, specialist whisky and the ultimate in handmade cigars. Boisdale – the home of world-class jazz, blues & soul and fine British cuisine – invites you to savour the good things in life within its convivial embrace. Raise a glass and join in festive celebration!

There is no restaurant with exuberance to match the spirit of Boisdale where foot-tapping live music whets the appetite for a stellar line-up of ingredients sourced from the magnificent natural larder of Scotland: wild Highland game, Hebridean shellfish, Loch Ryan Native oysters, Dunkeld smoked salmon, and roast Macsween’s haggis served with neeps and tatties and the obligatory noggin of the Glenfiddich single malt whisky.

Boisdale captures the essence of centuries of proud tradition with the warmth, informality and end-of-Empire atmosphere reminiscent of a Highland country house. Ranald Macdonald, the eldest son of the 24th Chief of Clanranald, hosts the restaurants and bars named after the remote port on the beautiful isle of South Uist in the Outer Hebrides which was home to the Macdonalds of Boisdale – the senior cadet branch of the Macdonalds of Clanranald, the largest and most anciently Royal of all the Highland clans.

The Clanranald family and national heroine Flora Macdonald played an important leading role in the most romantic, but ultimately tragic, chapter in Scotland’s history: the Jacobite Rebellion in 1745, which culminated in the routing of the Highland army at the battle of Culloden in 1746. Today, the family motto lives on - “Dhandeon Co Heiragha” which translates as “He Who Dares Wins”; Boisdale is now established as the embassy for Scotland within the capital of the United Kingdom of Scotland, England, Wales and Northern Ireland.

At Boisdale you can enjoy steak with Sinatra, lobster with Big Joe Louis and truffles with crooner T.J Johnson. Roll up and enjoy the mesmerising showmanship that comes courtesy of the best purveyors of jumpin’ blues, swingin’ jazz and rocking boogie woogie. You will discover that whisky is an indulged obsession, with more than 1,000 malt whiskies glinting alluringly from a 12-metre amber wall of liquid gold, and you can explore the largest collection of Cuban cigars on the entire planet. Particularly legendary are the seven different dry aged Aberdeenshire steaks, accompanied by devilishly indulgent sauces including rich bone marrow Bordelaise, classic béarnaise and, for lovers of all things luxurious, a slice of seared foie gras and fresh black truffles. Health-conscious salads, delicate seafood and congenial sharing platters also extol their virtues on an extensive menu.

For immersion in life’s great pleasures, check out the programme at www.boisdale.co.uk and raise that glass!

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Feast your eyes

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For immersion in life’s great pleasures, check out the programme at www.boisdale.co.uk and raise that glass!

“”

We put NICK HUNGERFORD, Founding CEO of Nutmeg, in the hot seat to answer our questions.

How did you first get involved in the investment industry? My first job, after completing a business degree at Exeter University, was with Barclays. I worked for them in the areas of product, banking and wealth management. Then I went on to become a Divisional Director at Brewin Dolphin before deciding to go to Stanford University to study for my MBA. It was really a combination of my wealth management experiences to that point, coupled with the creativity and innovation that you experience at Stanford, that led to the idea of Nutmeg. Basically, I was frustrated by the exclusivity and lack of transparency in the investment world - and I knew I wasn’t the only one. So I put together a business plan, secured initial funding and moved back to London to set the business up.

What’s the gap in the market that you identified? To be frank, I think that many people have been paying for sub-standard and generic investment management through their bank or an IFA. Or they’ve struggled to manage their own investments, unaware of all the options available to them, often paying

IN THE HOT SEAT

exorbitant and hidden charges. We’re set on changing all that. Nutmeg is the first discretionary investment management service in the UK that operates an end-to-end online business model. We build and manage investment portfolios for our customers for the same cost of them having to do it all on their own.

Essentially, we give investors a new way to invest - one that is fair, intelligent and accessible. We are proving to the wealth management industry there is a better way - one that is focused on what the customer genuinely wants, embraces technology and is scalable because of the efficiencies an online model can offer. In the same way as Amazon revolutionised book and music sales, and Expedia turned the travel agency business on its head, Nutmeg is transforming the world of investing.

How does Nutmeg work? What features does the site have?You set up an investment goal in our online tool - it could be for a retirement pot, a rainy day fund, your child’s education, or whatever - by telling us how much you want to invest, how much you’re looking to accumulate, over what timeframe and, crucially what level of risk you want to take with your investment. We then take you through a short series of suitability profiling questions to assess your risk appetite and your goals in more detail. We take all this information and construct a professional portfolio for you that we believe matches your objectives. We constantly monitor it and manage it,

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making adjustments to your investments at least monthly to take advantage of new investment opportunities and rebalance, to help keep your portfolio on track. And you can log on whenever you want to see where we’ve invested your money and how it’s performing. A typical medium-risk portfolio will hold over 10 funds, totalling over 3,000 individual investments.

How has it been going? What kind of response have you had to Nutmeg? We’ve seen incredible growth since launch. Just a few years ago I put together a small team of 4 or 5 people to build the site and the product from the ground up, using extensive customer research and testing. We now have 50 staff. Business in Q1 of 2014 was 350% up on the same period last year and we’ve just completed a significant round of fundraising to help us develop and expand at the pace we want and in the areas our customers want.

What kind of reaction have you had from the industry?It’s changed quite a lot recently. Initially, traditional wealth management firms viewed us with curiosity and scepticism. They largely thought Nutmeg was an interesting idea but not one that would necessarily be hugely successful, because it’s such a low-margin concept and because the belief has always been that investors will want face-to-face meetings with their wealth manager. Over the past couple of months, however, we’ve seen a big shift in sentiment and several of the industry’s high-profile operators have come and said they are looking to launch a similar service next year.

You completed a significant round of investor funding earlier this year, who is on board and how will you be using the money?We raised a total of $32m in that funding period, with shareholders including Schroders, Balderton Capital and Carphone Warehouse founder Sir Charles Dunstone. This gives us a very strong platform from which to push on and deliver more services and products, enhanced site features and continually improve our understanding of customers.

What are your future plans for Nutmeg?We are keen to launch a Nutmeg pension product. That’s high up the list right now. It’s something our customers clearly want. Many of them have expressed that they’d like all their investments under the one Nutmeg umbrella. We are also working on many exciting developments to our mobile presence. Again, we see and hear that customers want this. It fits with their lifestyle better if they can log in to their investment account from mobile or tablet, to see how their portfolio is performing, check Nutmails or to read our regular investment strategy updates.

London seems to be a breeding ground for fintech start-ups at the moment. Why is that? It’s been phenomenal, hasn’t it? The government has delivered a number of initiatives to help engender innovation in small and medium-sized businesses in the UK, especially in London. That’s largely why we set up Nutmeg over here. And at the same time the financial technology sector has been blossoming. Hand in hand, the two have proved to be very powerful for industry growth and a breeding ground for new, forward-thinking financial businesses. Regarding innovation in financial services, the UK and Europe is still some way behind the US - we’ve often felt quite alone in challenging the traditional and accepted means of investment management - but all that is changing. We’re now seeing more and more young, disruptive businesses enter the sector. It’s all fantastic news for the consumer as, finally, companies are actively trying to provide high-end, transparent financial management at a price that’s fair and easy to understand.

ABOUT NICK HUNGERFORD

Nick’s industry and investment views are respected globally and he frequently appears on Bloomberg, CNBC and BBC and has been quoted in the Financial Times, Wall Street Journal and many international publications.

Nick has been a guest lecturer at academic institutions including Harvard, Stanford and London Business School and has represented UKTI around the world, promoting the benefits of doing business in Britain.

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Pension FreedomWhat does the word “pension” conjure up for you? For some, thoughts towards a secure future, for others perhaps a feeling of confusion, apathy or even dread! CHRIS FENTON, Pensions Desk Consultant at Lark, explores the changing landscape of pension planning.

Whatever your stance, you are probably aware through recent media coverage that the incumbent Government has announced some significant changes to the UK pensions landscape. These changes will make a big difference to how individuals will view and use their pensions moving forward.

The days of turning 65, retirement, gold watch and slippers, are gone. The baby boomers’ generation, born between 1946 and 1965, are now approaching “retirement”. In the same way as this generation changed the world around them as they grew up through the sixties and seventies, they are now exerting their influence on the way they choose to retire. And it just so happens, that the Government has made changes to pensions that appeal to this large influential voting population! Retirement isn’t what it used to be, and now, neither are pension options.

I will explain the changes in more detail shortly, however, it is first perhaps useful reminding ourselves about the fundamentals of pensions and why saving into one is very worthwhile.

WHy SAvE INTO A pENSION?

We know that the purpose of a pension is to save money during one’s working life to provide an income and financial security throughout retirement. Bearing in mind the basic state pension is set to provide circa £144 per week or £7,488 per year (from 2017), you can see why it’s important to make your own provisions. Indeed, that’s why the Government pension is known as a State Pension; if that’s all you have to retire on, you will be in a state!

To encourage us to save, pension contributions receive full tax relief at your highest marginal rate (20%, 40% or 45%).The limit for contributions (including both employee and employer) receiving tax relief for the current 2014/15 tax year is £40,000. So, there is plenty of headroom for most. Therefore, pension funding is the most tax efficient savings vehicle for the retirement years.

I’ll run through an example; you are a 55 year old higher tax rate payer and you receive a notional £1,000. If you take this as income you will receive £600 net (after 40% tax).

If, however, you choose to use this £600 to make a personal pension contribution. The Government will apply 20% relief within the pension and you can claim back the additional 20% outside the pension via self-assessment, therefore you have the benefit of the full £1,000. With a notional £1,000 in the pension, you can take 25% of this as tax free cash = £250 and the residual £750 can be drawn less 40% tax = £450 making a combined £250 + £450 = £700 net. So, you are £100 better off even without any investment growth.

It’s outside the scope of this article to cover the nuances of salary/bonus

sacrifice and timing of tax relief for cash flow purposes, but other clever ways of contributing are possible.

dRAWINg ON yOUR pENSION FUNd

The current age at which most are entitled to access their pension funds is age 55. You’ll be right in guessing most will not want to or will not be able to retire at this stage, but to have access to these funds is very appealing. In the main, one can still draw 25% of the pension funds as a tax free cash lump sum, but it’s what you can do with the remaining 75% that the real changes have effect. Currently there are restrictions – either buy an annuity (which many perceive as poor value in the current low interest environment) or have a limited amount of drawdown each year.

ANNOUNCEd CHANgES

The Government have announced that as of 6 April 2015, individuals from age 55 will have unfettered access to their pension monies and will be able to draw these as they wish – and even take them all in one go if they choose to. The merits of this approach need to be considered carefully, since your pension fund is a tax haven, free of capital gains, income and inheritance tax.

Tax free cash is still available as before, and the remaining balance when drawn will be subject to income tax at the individual’s highest marginal rate.

pENSION dEATH BENEFITS

On 29 September 2014 at the Conservative Party Conference, George Osborne announced some more details regarding the new tax treatment of death benefits from pension plans. Without going into too much detail, currently, if you die

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before age 75, any untouched pension proceeds can be paid tax free as a lump sum to your nominated beneficiaries. However, on death after age 75, they were hit with a 55% tax charge. From April 2015 the 55% tax change is being removed and death proceed can be paid to beneficiaries subject to their marginal income tax rates, making pensions a much more favourable estate planning vehicle.

gENERAL RETIREmENT STRATEgy

Whilst the new pension fund will look very much like a flexi access bank account, the tax favoured status of their pension funds suggests it’s better to drawdown other assets first before accessing your pension fund.

THE FUTURE

So, with the tax relief, potential investment growth, new found flexibility and improved death benefits, it’s hard to say pensions are not interesting or even appealing! They are no longer going to be used just for ‘retirement’ and should form much more a part of one’s income and wealth planning.

Be mindful that your pension funds can be accessed from as early as 55, but may have to last you until you are 105! Therefore, the need for sound advice throughout your pension journey has never been greater.

At the Pensions Desk, we look after those who are approaching retirement, make sense of their pension options to ensure they are arranged appropriately for their goals. Even if retirement is a long way off, it is worth paying attention to your pensions now.

I’ll leave you with a few things to think about:

Am I contributing enough?

When do I want to retire?

What income will I need when I retire?

Will I enter full retirement or reduce my working week?

When am I looking to access my pension fund?

Will I need security or flexibility?

Where am I invested and how much risk am I taking?

If you require further information on the pension changes, wish to sign up for pension news updates or find out how the Lark Pensions Desk can help you, please feel free to contact:

This article is a simplified explanation of pensions and rule changes, and does not constitute advice.

Chris Fenton020 7543 2859christopher.fenton@larkinsurance.co.uk

EmpLOyEE BENEFITSMADE TO MEASURE

To discuss your Employee Benefits, contact:

Samantha Mistry020 7543 2818

samantha.mistry@larkinsurance.co.uk

WWW.LARKINSURANCE.CO.UK

Every issue, we share news of our recent activities with you.

COmpEER’S QUALITy OF SERvICE: THE CLIENTS’ vIEW.

We recently took part in ComPeer’s ‘Quality of Service: The Clients’ View’ conference at 155 Bishopsgate as a sponsor.

ComPeer provide business critical management information specifically for private client stockbrokers, wealth managers and private banks. Annual, quarterly and monthly surveys are initiated and completed with the full co-operation of the private client investment community and the firm support of its trade association, the WMA. This experience has given ComPeer a unique insight into the wealth management

industry and an ability to provide a strategic view of a client’s competitive position and level of success of their business strategies. The conference was to detail the feedback that ComPeer had obtained after speaking to 1,000 wealthy investors to gauge their views on a variety of relevant topics, including changes to the pensions industry, the advice gap, suitability, conduct risk, ISA changes and bespoke services

THE vCT & EIS INvESTmENT FORUm

We also recently took part in the VCT and EIS Investor Forum as a sponsor, where we got to speak to lots of interesting people.

The VCT and EIS Investor Forum is the UK’s must-attend event for VCT and EIS investors and the fund management community.

The forum is the only live event in the UK focused on bringing hundreds of private investors and IFA’s to meet the VCT and EIS fund management community on one day and in one place.

With the government’s changes to EIS and VCT’s in 2011/2012, and more and more choice of funds to back, the conference was aimed to give investors and IFA’s the chance to find out for themselves who is who, and what is what in the VCT and EIS fund markets.

Visit our website for more information: www.larkinsurance.co.uk

New endeavours

MADE TO MEASURE

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Ask the ExpertsHOW WILL THE NEW pENSIONS FREEdOm LEgISLATION AFFECT OUR COmpANy pENSION SCHEmE?

Given the purpose of a pension scheme default fund is to provide a reasonable outcome for those scheme members who don’t wish to engage with a process, most scheme Defaults are currently set up on the basis that Annuity Purchase would be the most likely option selected ‘at retirement’. As a result, ‘derisking’ towards retirement ending up with 75% in bonds and 25% in cash is currently the norm.

However, under new Pensions Freedom legislation coming in next April, what is the most likely choice scheme members will make? There are essentially 3 options:

1. Rip Out ASAP - managing withdrawals within tax bands.

Funds over £30k withdrawn over multiple tax years

2. Remain invested - drawdown or just defer option choice

3. Buy an annuity

— Rip Out will probably appeal to those with smaller funds (less than £100k?)

— Defer/Drawdown for the larger fund:

— Makes tax planning sense, in most cases, to run down non-pension assets first

— In the current low interest environment, annuities make more sense around age 75+

— Immediate Annuity purchase the least likely (except for those with health issues).

HOW IS A CLAIm SETTLEd FOR ANy SpECIALIST ITEmS, SUCH AS ONE-OFF pIECES OF ART, ANTIQUES OR jEWELLERy?

The answer to this question depends largely on the insurer and the type of cover you have in place. However, generally speaking, if the item is specified and the client has an up-to-date valuation confirming the value and quality of the item, then the insurer will look to settle the claim quickly. The wording will state that it is at the clients option whether to replace, repair or accept a cash settlement so the action required will be dependant on the type of item and type of claim.

For example, a specified ring at £10k that has been lost, is likely to be replaced or cash settled. A large painting at £25k that has suffered some damage in transit is likely to be restored.

All of this is completely reliant on the client having an up to date valuation. If there is no documentation to show proof of ownership, value and quality of the item, then the client will have to substantiate these things post-loss and for old pieces of inherited jewellery, this can be difficult. Hence, our best advice is to ensure that all valuations for art and jewellery are updated every 3 to 5 years.

- Dean Wright, Divisional Director

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So, in selecting the most appropriate Default Fund for the staff pension scheme, the annuity presumption which most schemes currently use just isn’t appropriate any longer. Each of those three retirement outcomes require a different investment strategy.

Rip Out lends itself towards cash at retirement and drawdown requires a different strategy. Using conventional low cost pre-retirement accumulation investment strategies is fine but at, or near to, retirement the key is to reduce volatility on the pension fund. Volatility is a capital killer if using drawdown; most mature pension fund investors don’t want to see large capital fluctuations either!

Therefore, more than ever, there is a requirement for investment advice during the years leading up to retirement – mind you what does retirement mean these days? In most cases, gone are the times when at age 65 it’s slippers on and potter around the garden. Either out of economic necessity, or personal choice, people are phasing retirement and continuing to work longer.

The Lark Pensions Desk has been set up to assist our clients’ staff approaching retirement.

1 The OAP and £10k Nil Rate Tax Band will

tend to cancel each other out, thus most income

will start subject to 20% income tax with 40%

starting around £42k pa. Therefore taking much

more than £30k will likely attract 40% tax

- Peter Rose, Client Director

pETER ROSE

As a Client Director, Peter is on hand to assist with the more complex issues that arise with our Employee Benefit clients. As a Chartered Financial Planner, Peter has a good understanding of wider financial planning beyond pensions.

020 7543 2825

peter.rose@larkinsurance.co.uk

dEAN WRIgHT

As Divisional Director of the Private Client Household Claims team, Dean concentrates his efforts on leadership and development of the team, along with claims relationship management with other insurers, loss adjusters and third party partners.

020 8557 2352

dean.wright@larkinsurance.co.uk

WWW.LARKINSURANCE.CO.UK