threesixty services.ppt
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New Model Adviser Conference 2010
New Model Adviser Conference 2010
New Model Adviser Conference 2010
differentiation
• RDR - key issues• RDR – where next for OMAs?• Spot the difference• Look after the Ps• Spot the differences again• Q&A
New Model Adviser Conference 2010
implementing the RDR
• Clarity• Remuneration• Professionalism• Miscellaneous issues
New Model Adviser Conference 2010
implementing the RDR
Clarity
Independent Advice
Vs
Restricted Advice
?
New Model Adviser Conference 2010
implementing the RDR
– Written disclosure – Not mandated– AND
– Oral disclosure – Mandated
Clarity?
New Model Adviser Conference 2010
implementing the RDR
Packaged Investments
Retail Investment Products
Clarity
New Model Adviser Conference 2010
implementing the RDR
To be ‘Independent’ WOM advisers must:Consider all RIPsUnderstand how they workNot restrict advice to own OEICS/DIFs
Clarity
Retail Investment Products
New Model Adviser Conference 2010
implementing the RDR
To be ‘Independent’ WOM advisers:Can operate in a limited field Can use a PanelCan be financed/owned by a provider
Clarity
Retail Investment Products
New Model Adviser Conference 2010
implementing the RDR
• Remuneration– No commission for Advice channels
(except BA)– No ‘factoring’ – new members to existing
GPP/protection under ICOB (CP 09/31)– Disclose before providing service– Disclose after providing service– Ongoing charges require ongoing service
(except RP and existing)
New Model Adviser Conference 2010
implementing the RDR
• Remuneration– No obligation on provider to facilitate– Can’t select product on basis that
provider does offer AC support– No negative charges– Applies to all advice channels (except
BA)– Can’t vary between individual clients– Review re internal bias
New Model Adviser Conference 2010
implementing the RDR
• Professionalism– Independent PSB – Now to be FSA (CP 09/31)– QCF 4 or equivalent– No regrets guarantee – June 2009 (CP 09/31)– FSSC Review started August 2009– Structured CPD – Learning outcomes (CP
09/31)– 31st December 2012– New advisers
New Model Adviser Conference 2010
implementing the RDR
• Timetable– Consultation throughout 2010 (16th March CP
09/31) – FSA Feedback Statement, incorporating final
rules, quarter 1 2010. – The final timetable for implementation is
likely to require firms to implement changes by 31 December 2012. And now some ‘ifs’ (CP 09/31)
New Model Adviser Conference 2010
RDR – the impactProposal
Increased capital adequacy to £20,000
Three Months fixed expenditure
Qualification threshold raised to QCF 4
New definition of “whole of market”
Adviser charging
Abolition of provider Factoring
Potential market impact- OMAs
No Impact
Drive away from new model,Slow down in investment
Possible move to network?. Driver for consolidation
Some advisers will not reach this level. Retirement or move to basic advice or introducer
Negligible but may lead to shift to “restricted advice”
Possible reduction in move to wrap.
Some move to basic advice/ introducerEncourage move to more secure business models
Less movement of productsStronger relationship between firm and client
Move away from ‘transactional’ modelsSome move to basic advice and IFA
sale of protection contracts under ICOBs.Networks and support providers may offer replacement.
Banks may enter market
NATIONAL ACCOUNTS BRIEFING 2009
New Model Adviser Conference 2010
New Model Adviser Conference 2010
Profile of the survivors
New Old Model Firm• Fee based• Qualified• Advising on wide
range of investment vehicles
• Clear client proposition around initial and ongoing service
• Using technology• Well capitalised
New Model Adviser• Fee based• Qualified• Advising on wide
range of investment vehicles
• Clear client proposition around initial and ongoing service
• Using technology• Well capitalised
New Model Adviser Conference 2010
Similar but not the same
New Model Adviser Conference 2010
Brand or consumer research
New Model Adviser Conference 2010
NMAs – Reading the manual!
• Fee based– Genuinely, ‘Service is the product’ –
income not dependent on transaction.• Qualified
– Probably beyond ‘Level 4’• Advising on wide range of investment
vehicles– Still operating beyond WOM and
providing holistic advice
New Model Adviser Conference 2010
NMAs – Reading the manual!
• Clear client proposition around initial and ongoing service– Properly segmented and scalable
• Using technology– As appropriate to the proposition for
specific clients• Well capitalised
– And well resourced– Outsourcing services where appropriate
New Model Adviser Conference 2010
NMAs – Reading the manual!
• Working with Professional Firms– Professionals recognise professionals
• Have clear Propositions – Internal– External – Service – deliver to expectations– Investment philosophy
• Robust• Consistent amongst advisers
New Model Adviser Conference 2010
What’s your strapline?
Vorsprung durch Technik“It’s a Skoda, Honest”
Skoda Audi
New Model Adviser Conference 2010
Questions?