Times, they are not changing in some quarters

I was interested to receive an e-mail this morning that shows how times are definitely not changing in some quarters. The advert, aimed at financial advisers and financial planners, announced a “new range of high yielding products your clients will love, with a minimum 10% commission”; the sub-headline is “a great commission while offering all your clients want: guaranteed performance.”

Further on, the ad offers “ industry leading commission at the same time guaranteeing your client’s investment”. It then states that this is “an innovative investment vehicle producing outstanding customer returns which is, amongst other things

• authorised for use in SIPPs/SSASs (ideal for the pension transfer market)
• guarantees capital and income for your clients throughout the term
• is underpinned by high yielding assets world-wide
• is managed by a select few FTSE 100 companies."

Questions for discussion and consideration:

How can any company still be selling products based on a 10% minimum commission payable to the introducer?

Has this company not heard about the FSA’s proposal to abolish commission (the ad also offers introducers a unique client re-investment programme, creating you a residual commission)?

Does this company not understand that high yield equates to high risk?

If this company is guaranteeing what is in effect a higher yield, higher risk investment what is the cost of the guarantee to the client?

What fees over and above the introducer commission is the company taking from the investment?

Ultimately, how can this investment work?

PS: there is one glaring omission from this ad. There is no mention that the company is authorised by the FSA. Is this a complete scam?

IFP Conference, Day 3

Well, it was a great night last night, with excellent food and wine provided by Celtic Manor and great entertainment from the Chepstow Male Voice Choir, Siren (wacky electronic violins) and the Casino Company. When we were designing the conference we put networking as a key benefit of the conference and it was gratifying to note that networking was still in full swing in the bar at 3 am after the Gala Dinner.

In spite of that, Day 3 was well attended and the starting panel session on the future of financial service with Mark Tibergien (USA), Julie Littlechild (Canada), Paul Resnik (Australia) and Brett Davison (UK) was probably one of the most valuable sessions of the conference, although I have to admit that it asked more questions than it provided answers.

The final two sessions that I chaired were both aimed at planners dealing with firms and businesses. Those stalwarts from Technical Connection, John Woolley and Tony Wickenden, sought to tell us about seven financial planning strategies for smaller private business in these challenging economic environments, a great topic which attracted a large audience. It was therefore sad that their lack of preparation and timing meant that they only covered half of their strategies in any detail. This was not only sad, but also disrespectful to the large number of delegates who had evidently made a huge effort after a long, late night to be there to find out what these exceptionally knowledgeable speakers had to say.

However, the next session, although with a smaller audience, was as important if not more so. John Tucker, a director of the International Centre for Families in Business talked about the emotional and psychological side of dealing with family businesses and although a number of delegates afterwards indicated that they would not want to go down that route, there is no doubt that this presents a fascinating opportunity for planners and certainly for Planning for Life; with our move towards a focus on entrepreneurial business it certainly hit the button.

Tim Harford, the “undercover economist”, provided the final keynote closing session. Although Tim was not as inspirational as Michelle Mone last year, he was entertaining and thought provoking and I can now add his knowledge of the economics of happiness to my armoury when dealing with clients on the subject of freedom and happiness.

From there it was the long journey back home, but it was a relief to see that Air South West have found a new rubber band for their plane. Service is back to normal, Air Arran have been stood down and crew member Kathy is back in the aisle.

IFP Conference, Day 2

Well what a day! We got into full swing at 9.00 this morning with an introduction from Barry Horner, our president, who spoke of the huge opportunities for the profession, the achievements of the last year and things to look forward to in the coming year. Key amongst these is the concept of financial planning firms, which the board will develop over the next few months with a view to launching a register early in the new year.

Toby Ricketts of Margetts, our main sponsor, talked to us about bubbles and crashes before our first keynote speech from the the inspirational and highly entertaining Mr BJ “Death Cigarettes” Cunningham. BJ talked about client relationships, truth, faith, goals and dreams. Amongst his many stories about his fight with BAT and Gallagher, HM Customs and Excise and the courts to bring truth, death and an instant, repeatable nicotine high to the masses at low cost, BJ told the story of how faith in self and our offerings is the key to success. To paraphrase, many centuries ago an angel made love to a virgin who gave birth as a virgin to a boy who declared he was the son of God, got executed on a tree for it, promised to rise from the dead after three days and in so doing save humanity and bring to it everlasting life. As BJ said, not a very attractive business proposition; you would not put money into that particular business plan, but a third of the world’s population believe and live their lives by it. Powerful stuff, BJ, and many thanks.

Then onto more technical stuff. As chair of the Technical Solutions for Clients track, I was privileged to be able to introduce Russell Investment’s Tim Noonan, who challenged most of us in the room to kick the Seven Habits of Highly Ineffective Advisers to become more efficient, effective, professional and business like. It was also a privilege to introduce fellow Old Amplefordian Andrew Milligan from Standard Life; as last year, Andrew gave an excellent review of global markets, concentrating on the theme of financial planning in a bear market, in a highly interesting and entertaining way.

During lunch a few life planners hosted a Bridge the Gap session on life planning to give help and guidance to planners wanting to move into this arena.

The formal part of the day ended with a session which rivaled Michelle Mone’s stunning keynote of last year. Roger Black and Sara Storey talked about their Olympic Experience, and introduced two young lads they are mentoring and coaching with assistance from Scottish Widows, to get a place in the British Olympic team. One of these, a weightlifter, is disabled but even with no legs he can lift 170 lbs. Illustrated with amazing video clips the four talked about working and training to achieve their dream of an Olympic Gold, and about their individual trials and challenges to get there. An emotional and truly amazing 60 minutes.

This evening its our Gala Dinner, entertainment and almost certainly a long night.

IFP Conference, Day 1

Jeremy reports from the Institute of Financial Planning annual conference at Celtic Manor, near Cardiff. Jeremy is there both as a Certified Financial Planner looking for technical updates, ideas and people who can help to develop Planning for Life and its services, and as a Member of the IFP Board and Conference Committee responsible for organising the conference.


This was always going to be a difficult year to organise a conference, and we had tough decisions to make at the beginning of the year. To secure Celtic Manor required a significant deposit at a time when we could not be certain we would get the number of delegates, exhibitors and sponsors we needed to break even. However, the venue, the programme, the speakers and an improving economic climate have all helped to bring in the numbers, and although we have slightly fewer delegates this year, we are more than happy with the final roll call of over 300 delegates and over 50 exhibitors / sponsors.

We decided on a sporting theme this year - Fit for the Future - the future being 2012, the London Olympics of course, but also the implementation date for the Retail Distribution Review. This is the FSA’s massive project to “sort out” the way financial products are sold to consumers and which will have a huge impact on the financial services industry, indeed is already having an impact.

Although the conference did not officially start until 4.00 most delegates were here from mid morning, taking the chance to sit in on a number of fringe meetings ranging from a discussion on life planning to technical sessions on pensions, tax and investment. I joined the panel for the well attended life planning meeting organised by Tina Weeks and we had a lively discussion about life planning. I believe we inspired many who were interested in moving in this direction, as well as showing that there are almost as many different ways of “doing” life planning as there are life planning practitioners.

The conference proper started with an orientation session aimed mainly at first time delegates and new members. This was followed by the AGM and the welcome evening held in the exhibition hall, a chance to mingle with delegates and exhibitors over food and wine, a conversation which moved into the bar after the exhibition hall closed at which point life became a little hazy.

I was delighted to hear at the AGM that I had been re-elected to the Board for a second three year term. My thanks to all those members who voted for me and I look forward to serving the membership to the best of my ability in the run up to 2012, and in what Justin “Scum” Urquhart Stewart described as a once in a generation opportunity to radically change financial services for the better.