What’s in a name? Is Independence necessary or desirable post RDR?

What’s in a name?Is Independence necessary or desirable post RDR?David BurnsExecutive Director, NMG Consulting

So what’s Independent advice and what’s Restricted advice?

…or we could simply agree to disagree!

We could spend the

entire session

debating this

Which is which?

► There are no off-the-shelf solutions…every single one of our clients has their own personal concerns, responsibilities and ambitions…

► We offer a range of carefully constructed, risk-rated portfolios that enables you to spread your investments across a wide range of asset types and countries

► The cornerstone of our approach is our Investment Committee who 'manage the fund managers' on behalf of our clients

► Our planning process…how we get from where you are to where you need to be

► We offer several active portfolios, to suit every risk appetite…we select a range of funds from a variety of expert fund managers and management houses

► Our Wealth Management Committee meets quarterly to discuss the merits of where we have invested

Single Tie

Single platform, c100 funds, core provider, gap fill

WoM but in practice 70% of business placed

with 3 providers, packaged products

Single platform, narrow investment proposition

TODAY: Most firms operate hereTODAY: Most firms operate here

Retail investment products, multiple

platform and product usage,

additional monitoring

How IFAs describe RA

How IFAs describe RA

The Advice Continuum

Which will you choose…and why?

Whole of market

Passive restricted

Active restricted

Does the customer actually care…or even know?

…or do they simply want to

know their adviser isn’t biased and that they don’t have ‘all their eggs in one

basket?

Do customers demand

independent financial advice?

Ask yourself…

Are you entirely happy with the range of products and services you are able to offer your clients today?

Is your current model fully compliant with the new whole of market rules?

So why do you need to be independent going forward?

Yes

Maybe not

?

If you had to choose one of these, which would it be and why…

Active

clien

tsA

ctive clie

nts

FU

M (

mill

ion

s)F

UM

(m

illio

ns)

May 10 Nov 10 May 11 Nov 11 May 12

Mean value/client:

£99k £118k £129k £132k £140k

Does Restricted Advice present a solution for the mass market? IFAs are focusing on higher value clients and the banks have exited the mass (advice) market

David Burns

Executive Director

London Office +44 20 7631 3087

Email David.Burns@NMG-Group.com

David Burns

Executive Director

London Office +44 20 7631 3087

Email David.Burns@NMG-Group.com