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Chairman's Remarks

A By Jack FitzPatrick

Welcome to the summer 'O8 edition of The Professional Insurance the service we provide and charge our clients for the work we do on

Broker. their behalf. We are currently working on a marketing and training. strategy to assist and support brokers who wish to implement a fee

it's a great honour for me to sente as your chairman again for a . .

policy and hope to run seminars in this regard starting in September.second term.

We are also continuing negotiations with broker-supporting lendersFirstly, I would like to thank all those of you who attended our recent who have not finalised their commission policy for 2009.

AGM in Moran's Red Cow Hotel, which gave members the . .

The Financlal Regulator's review of the Insurance Intermediaryopportunity to raise and debate issues of concern. On behalf of my

market, of which PIBA is a very active participant, is due to befellow committee members we would like to express our thanks to

. finalised in the autumn; and we are also continuing to press thethose members present for the ovenshelming endorsement of thecommittee and the executive's dedicated work on behalf of the

Department of Finance to issue its proposals for the implementation

of the new IMD regulations, which are considerably behindmembers over the past busy and challenging year.

schedule.Your new committee and I look forward to working on behalf of all of

. We hope to announce soon an attractive new non-clawback pensionyou and supporting you in tackhng and overcoming the many

challenges and issues that we as Brokers face in this very difficult and option with Eagle Star, and on the General side we have recentlyestablished an online motor quote engine: PIBA Sure - a system

uncertain period for our profession. Our absolute priority is to . .

which gives Brokers the facility to provide quotes directly from thelfcontinually ensure that Broker interests are represented and .

websites. We are also looking at bnnging home insurance quotessafeguarded with the Financial Regulator, insurers and lenders and, .

where appropriate, in the financial media and with Government. online soon.

. The inaugural PIBA Conference, "Building on Your Success", was heldOn the mortgage front, it is incumbent on us to clearly explain and .

In late April and was an outstanding success; and we have alreadydifferentiate to consumers the quality, choice and independence of

. commenced work on next year's event, which will again be held inour services compared to those when dealing direct with a lender. In

. the Four Seasons Hotel.the present 'hard' market, with lower commissions being introduced

by most lending institutions, it is inevitable in certain situations that Finally, I wish you and your staff and families a joyful, sunny(! ! ! !) and

consumers will have to pay a balancing fee for engaging our services. productive summer and hope you all find our latest edition to be an

if certain lenders won't pay for our services 1 believe we must value enjoyable read.

ContentsMortgage Brokers 5

Agg What to do when Lending gets Ugly 6

Minimum Competency Requirements - Are you compliant? 7

PIBA WriteNow celebrates its 1st Anniversary 9

Pensions and Wealth Management 10

Making 'Life' Easier - Improving service through the use of innovatve technology 11

Together we can go further 12

Professional Standards Advisory Board - General Insurance Strateg c Objectives 2008-2009 13

I Hot Commodities vis Pensions 15

Announcement: LIA Brendan Glennon Achievement Award Scheme 15

PIBA Conference 'Building On Your Success' (photos) 16

Income Protection - Grow your Business, Protect your Clients 18

Meet ... Brendan Glennon, Former Chief Executive, LIA 20

Managing Sickness and Absence 22

Every Cloud has ... Potential! 24

Claims Administration - Cost or Benef t? 25

I Deposits: Shelter from the Storm 26

The Options for Investors in a Volatile Market 27

Topic: Using Technology for Better Financia Plann ng 28

Broker's Voice - Billy Morgan Financial Services 29

PIBA Activities ------------ ------------ ---- ----------- ------ ... 30

Understanding Income Protection claims can really support your protect on advice 31

Updates ----------- - 32

Crossword ------------ 32

Mortgage Brokers

By Diarmuid Kelly, Chief Executive, PIBA

In the beginning there were building societies. How far we in the mortgage market, forgetting that the Broker market share

have come from a place where products were bought and is now 70% in the UK.

sold from a man wearing one hat. When we look at themarketplace today, we see how far we have come with cross I have heard all sorts of diatribe about the rationale for

pollination of products and services. The banks and building mortgage commission cuts. The reality is that some lenders cut

societies are in our business and we are in theirs. Was this commissions because they could. A shortage of credit meant

unavoidable progress a good thing or a bad thing? One thing is they could weather the fallout and they used this situation to

certain: the modern day client has a sophisticated source of ration the business with no regard for Brokers or their clients.

financial products; in many cases brought right to their living. .. The best description of this mortgage market is that it is like a

rooms. Gone are the days of young couples and their famliles. hard general insurance market. As the soft cycle inevitably

coming together in prayer the night before they met thefollows, so too the seeds of a future change in the mortgage

building society manager. In the current climate, there aremarket are well and truly planted. The bean counters in banks

those who say it might return. Not if Brokers have anything toare already calculating the enhanced profits on loans sold at

do with it. significantly higher interest rates in the last few months - they

The Mortgage Broker revolutionised the mortgage industry and will assume the loan continues for five years but the crunch will

turned it into a consumer focussed industry. Within a short be over in a fraction of that time. The question is will the banks

time, what was the domain of the banks and building societies be quick to cut loan rates once the crunch subsides?

became another service that Brokers brought to their clients in .. What can the Broker market learn from this episode when

the community. Customers switched in droves to using Brokers .. . supply frees up and we have a competitive market again?

for advice, choice and personal service; and today BrokersCertainly proper agency agreements are a core fitness test for

account for 50% of mortgage business transacted. .. any lender with pretensions in the Broker market. But does the

Competition, choice, product innovation and customer servicewhole of market concept need to be revisited? Perhaps long

stepped up several gears in the mortgage market with theterm agreements covering all aspects of the supply relationship,

arrival of Brokers. . .

with a core panel of partner lenders alongside

Even with the current storms in the property and lending price/underwriting match agreements to plug niche gaps maymarket, Brokers need not fear their future in the mortgage better serve Brokers and their clients.

sector. As long as there are clients who want their interests

represented, Brokers will flourish. As long as Brokers realise the This story has another 18-24 months to go before it runs its full

unique position they hold in the marketplace, they fear no course, and only when the market frees up will there be a fuller

competition. As long as there is a marketplace - vibrant or picture of the fallout from the escapades of certain lenders over

otherwise - Brokers will dominate it. the last few months. But Brokers should feel confident in theirposition in the marketplace and the value of their services to

Lenders have only recent history in the Broker market and clients. And remember the old Broker adage - "the best thing

some do not appreciate the long term value of the relationship you can do for your clients is be in business next year". The

with the Broker market. It is quite possible that some lenders best response to the lenders who have cut commissions is theeyed with some jealousy the growing market share Brokers had same thing.

Wi-\O 56MT IT P (ME TECH &TOOL CORPORATIOM.MY, IGMT TI-IAT LOV6Of t ITS SGMDING FIEDIT BASK6TS TO

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Together we can go further

By David Infantes, Country Manager/UK & Ireland, Solbank

"Spain is different" is a slogan used to describe that "something

special" this country has to offer you and your customer. It's notonly about the sun, the beach etc., it's about people and their

art of living. You can't explain it; you have to feel it, like manyother Irish residents who chose this country for the purchase of Sol ba n ka property in order to live temporarily or permanently in Spain.

And here is where Solbank comes into play.

Buying a home in a foreign country without assistance can be

a complicated process and a different language and local

habits won't make it easier. With or without mortgage finance,

Solbank can provide expert advice on all the steps to be taken

and the professionals to be contacted, so that your time in

Spain is spent enjoying your home and not chasingbureaucracy. Nevertheless, you are strongly recommended to

engage your own independent lawyer (abogado). Bear in mind

that even though a public notary (notario) is always involved inthe legal process of buying and selling a property, he or she

will not verify or guarantee the accuracy of statements made in ,

a contract.

Effecting the Purchase: Helpful tips

Your lawyer should carry out the following checks:. L

+ Ensuring at the local Property Register (Registro de la

Propiedad) that the property is exempt from mortgages oroutstanding debts Taxes and fees

+ Verifying with a surveyor the adequacy of the purchase These will commonly amount to some 10% of the purchasepnce price, but there may be regional changes. The taxes payable

+ Checking at the Town Planning Department will probably be:

(Departamento de Urbanismo) of the Local Council + In the case of a new construction, 7% value added tax

(Ayuntamiento) that your property won't be affected by (lVA) plus a 0.5% on 'Documented legal Acts' (Actos

any public or private building project Jurldicos Documentados)+ Making sure that the former owner of the property is up

+ In the case of resale, a transfer tax, which is 7% of theto date on the Property and Capital Gains Tax payments, assessed value of the property (lmpuesto deas well as on the payments for basic utilities (water, Transmisiones Patrimoniales)electricity, telephone etc.) and to the Owners'Community. + The Capital gains tax (Plusvalia), traditionally payable by

the vendor, may sometimes be paid by the purchaser.

Mortgage conditions Other related costs would be notary fees, stamp duty, legal

Solbank generally limits its lending to 70% of the purchase fees, deed registration fee, surveyor's fee, etc.price or the valuation price, whichever is the lower, but theactual LTV depends on the property and other conditions. The In October 2007, Solbank signed a Co-operation Agreement

maximum term for a mortgage loan depends on the with PIBA.

borrower's age when signing the contract, but will not exceed

40 years.

The bank will require a first full legal mortgage charge over theproperty to be purchased through a Mortgage Finance Facility. Find out more about preferentio/ finder fees and mortgage terms by

Life insurance and house/contents cover (including colling us on 0034902 627267, or just send on email to

compulsory fire insurance) are available through the bank and sep@solbank.com.

may be made a condition of the Facility. www.solbank.com/en/PIBA

PSAB-GI

Strategic Objectives 2008-2009By Tony Culley, Chairman, PSAB-GI

PSAB- PROFESSIONAL STANDARDS ADVISORY BOARDGENFMI INSUMNCE

As independent Chairman of the newly established Professional + To provide a forum in which holders of the C1P designation andStandards Advisory Board - General Insurance (PSAB-GI), I am de- other such designations and other industry interests can

lighted to update PIBA members on the new Board's role in exchange information, views, ideas, and, as appropriate, best

supporting competency requirements. practices in the interests of developing the overall standard ofthe CIP qualification to the benefit of the individual members,

Mr Joseph Grogan, Past President and Chairman of the CPD Committee -

their employers, Industry and commerce in Ireland generally andand co-founder of the PSAB-GI Board, ended his tenure of office as -

with the consequent creation of a well-formed public regard forChairman of the CPD Committee on the 11th of February 2008. He the CIP qualification;delivered the Institute's key objective for 2005-2006 by guiding the

development of CPD to support competency requirements + To strive for a high standard of professional conduct among

holders of the C1P qualification.Since the P5AB-Gl's incorporation on the 23rd of February 2008,

PIBA, | BA IIF, The Insurance Institute of Ireland and The QFA Board our first challenge in 2008-2009 is to raise awareness of regulatory

have been working together to implement, maintain and supervise competency requirements among CIP holders and with that in mind

compliance with Continuous Professional Development for all CIP the Board's priority this year is to implement a communication

holders. Continuous Professional Development (CPD) is an essential outreach campaign. The Board has recently developed its corporate

companion in supporting the lifelong learning requirements of brand, reflecting who PSAB-GI is and the principles and values that

accredited individuals, and the maintenance of the CIP qualification. underpin the Board. From June 2008 a nationwide campaign will

CPD enables professional development to be structured in a way that provide members with clear and appropriate information about CPD

meets personal needs, the requirements of employers, and indeed compliance. The campaign will deliver at the following levels.

those of the Financial Regulator; ensuring that one remains compliant + Membership: through regular communication and support viaand up-to-date, which is the mark of a true professional. the Board's new website, email and helpline

According to its Articles of Association the Professional Standards + Nationally: through a co-ordinated national strategy of media

Advisory Board-General Insurance's primary objectives are: communication and face-to-face presentations

+ To implement and maintain a programme of Continuous + Corporate: by working alongside employers to support CPD

Professional Development (CPD) and all related activities for compliance internally

holders of the CIP (Certified Insurance Practitioner) qualification + Partnerships: by working closely with professional and industryand other designations as determined by The Insurance Institute bodies involved in general insurance, to ensure their members

of Ireland from time to time and to supervise the compliance of are kept fully informed with their ongoing CPD requirements.holders of all such designations with such CPD requirements asthe Company may from time to time prescribe for such holders; Employers may submit in house training and seminars in general

insurance requiring CPD approval to the Professional Standards+ To take steps to investigate failures by holders of the CIP

Advisory Board - General Insurance (PSAB-GI) for accreditation. App-qualification and other such designations to comply with CPD

11cations should be submitted online atrequirements prescribed for them from time to time by the http://cpd.insurance-institute.ie/courseAccreditation.ospx.Company, to recommend to the insurance Institute of Ireland thetaking of disciplinary action against persons failing to comply with The Professional Standards Advisory Board - General Insurance (PSAB-GL)

such requirements and in appropriate cases to recommend the can be contacted via its helpline and cmail facility by graduates andremoval by the Insurance Institute of ireland of the designation of corporate members in relation to CPD compliance. Please contactCIP and other such designations from persons falling so to comply; P5AB-GI helpline: (07) 645 6699 or email PSAB-GI: cpd@psob-gi.ie

+ To develop and to amend from time to time as it sees fit, disciplinary for further details. Our website will be 'live' this summer.

procedures to be implemented by Rie Insurance institute of Ireland

against persons failing to comply with CPD requirements prescribed

for them from time to time by the Company; P/BA is represented on this board by liam carberry

M

9

Income Protection - Grow yourBusiness, Protect your ClientsBy Karen Gallagher, Business Development Manager - Income Protection, FriencIs First

In the current economic environment we are all experiencing a their existing client bank. Do you have clients who would

downturn in the appetite for investment products and listen to this advice? Are there clients who have a good

mortgages. Many life companies and brokers are now behind investment portfolio but are exposed in the event that theirlast year's earnings levels due to the impact of the credit crunch income should stop?

across our product range. We now need to assess theopportunities that are currently available to us to grow our A similar situation could arise for your pension clients. These

business in this uncertain climate. Well the good news is that clients have put a lot of their earnings into ensuring that their

there are still some opportunities out there; the key is to know pension fund is built up. What would happen if they couldn't

how to exploit theml work for part of their working life due to ill health, even if it wasonly for a few years? Their pension funding would be severely

Past experience shows us that in times of economic downturn, hit. Are there clients on your database who fall into thisconsumers switch from investments to protection. Their category? We suggest that now is the time to talk them throughmindset in these times is less optimistic and so typically this scenario. Ensure that they have income protection in place

consumers work to protect the assets they have already built to protect their pension funding and enable them to

up. In the current climate, protection is firmly back on the understand their exposure should their income stop.

agenda.Here at Friends First we are market leaders in Income

This is where Income Protection has become a key ingredient Protection. We hold over 85% of the individual income

with brokers who want to make up their earning losses from protection market and this figure is growing.

Other areas. In fact, at Friends First our income protection . .

The expertise we can provide you with, not only on the productbusiness is up over 25% on last year's levels. Brokers whoitself, but on how to position it, ensures that you can make a

have focused on this area are reporting continuing business. strong case when presenting the concept to your clients.

growth this year. .Friends First has been involved in this business for over 30

Income Protection is now being positioned as a priority need in years and we are now experts in this area. We can advise you

many Brokers' factfinds with their clients. The rationale is that if as to what works and what doesn't. This ensures that you don't

their client is not in a position to earn an income due to ill waste time and energy on activities that won't bring you the

health, they will not be in a position to pay for their life rewards, and that your valuable time is spent on successful

assurance, pension contributions, mortgage etc. Income income protection selling.

Protection is the vital component in holding all these other. . We are currently organising a series of roadshows focusing on

financial plans together.Income Protection training. These will take place around the

Continuing on this theme of protecting assets, it is vital that country for PIBA members. If you have missed these sessions,

your client understands that without income Protection he don't worry: we will continue to provide regular training events

may be forced to divest some of his current investments as we know how important it is to keep you up to date with

earlier than expected due to ill health and his income developments in the income protection area.

ceasing. Take for example a client whose assets are in In the meantime all our account executives are extremely wellproperty. In the current market would your clients really want versed in all elements of this product and, as always withto be forced to sel these properties and possibly gain less Friends First, are happy to provide you with whatever supportthan his original projections? Ill health leading to loss of you need.income could put your client in this position: having to sell

assets to support lifestyle costs. If he is covered by income 50 finally, there are still areas of growth even in this dampened

protection then this will pay for his lifestyle, ensuring that his climate. It's back to basics for all of us - protection selling is

assets remain intact. Now is the time for brokers to look at where it's at!

Me et ... Brendan Glerigon ::merChief Executive,

Q Firstly Brendan, best wishes on your recent when new children arrived in the houses you called on - and as CEO, Pat O'Sullivan,and the Board of LIA share my passion was therefore very pleased to accept an offer from L1A to act asretirement from LIA and thanks for taking the time to talk the prospect of hopefully selling a savings type investment on for continuing the development of LIA in line with our mission a consultant for a further two years, with specific responsibilities

to us today. Maybe you can start off by giving our readers the life of the new arrival. You also experienced at close hand statement: "increasing the competence,standing and success and working closely in this regard with my successor Patsome information about the private family man behind the other end of life when deaths occurred,and in many cases of those who give and support financial advice". I believe that O'Sullivan. I take this opportunity to wish Pat every success in

the public persona? the vital role of the smallish type mortality policies in such this will continue to be one of the main objectives of LIA into his new role. With his 30 years' experience in financial services,

Thanks for your good wishes on my recent retirement and for circumstances. the years ahead and my successor is fully committed to and his 100% commitment to any task he undertakes,together

ensuring that our mission statement continues to be achieved. with his expertise in many areas I have no doubt but that Patgiving me the opportunity to1'put pen to paper' in your quality In 1967 I joined Life Association of Scotland (a company some will lead LIA to greater heights in the years ahead.magazine. After some 46 /2 busy years in the financlai readers will remember,but no longer in existence) as a brokerservices industry it was timely that on my 65th birthday (the consultant. This was a major change in my life, very quickly Q what do you see as recurring issues in our industry

10th of May '081) 1 should retire from the post of CEO of LIA, a bringing me into contact with a large number of brokers and and how can the industry find solutions to these? Q What are your hobbies and passions away from yourposition 1 had held since the 1st of December 1995. products I was unaware of, and generally experiencing and I suppose some issues change over time and others stay the working life?

I am more than happy to share some details of my learning about the wide scope of the financial services same. One key issue in the industry in the past has been the For many years past LIA and other industry involvements have

private/family life with your readers. I was born in what some business,about which I had very little prior knowledge. The six need to improve the quality of advice given to our customers. been my hobby and passion - sad as that might seem! But 1

readers may remember as the original Coombe Hospital in years I subsequently spent with Life Association were without In this regard the industry has made great strides over the last very much enjoy following all forms of sport, walking and

Dublin 8. My parents Bobby and Marian Glennon,who both d ubt

pd f porbu i

st im antnythey plres ted me decade in professionalising the provision of financial advice. reading, mainly novels. I have also enjoyed the limited

ahar u Ived hang, althyeand rhappy hiese(until O') broAun business,which prepared me for my next move. 11

w r nht uuA bitro c n

dFo da nH

r

ppo turutes I havteh ade p

eabrh ea a

ipa ular to

and Hilary, and one brother, Brian. In 1966, I married LJna In 1973 I left Life Association of Scotland and became a partner conjunction with our other education partners and with full ahead I may, God willing,have opportunities to travel to many

(Whelan) and we subsequently became proud parents of four in an existing small brokerage firm. Again this was a further support from the industry (including members of the institute parts the world that are of interest to me, with a novel

children,Brian, John, Peter and Flona. Our family life has been learning opportunity and presented me with additional of Bankers) we now have 7,800 QFA's providing financial continuously in my hand luggage!

extended in recent years by the arrival of four grandchildren: knowledge of the business, including, at that time, an advice. It's been an incredible journey and shows that noRachel, Jack, Harry and Emma. Family life is and has always introduction, in a very small way, to the non-life (general) side matter what the current issue or problem may be, the best way Q And finally Brendan, as a keen sports follower whatbeen important to us - we are fortunate that we (sisters, of our business. On the 1st of May 1978 I set up my own to solve it is through all the interested parties working together. do you make of the appointment of the new Ireland rugbybrother, sons and daughter) all live quite close together in brokerage,Brendan Glennon & Company Insurance Ltd. which coach ... ?Dublin and this greatly facilitates family gatherings,and even kept me gainfully employed until I eventually became anmore so the opportunity to informally visit each other. employee of L1A. Q What do you see as the key areas for brokers to As a keen admirer of Munster Rugby over many years I have

Thankfully despite having the experience and pleasure of focus on in growing their business? great hopes for the Irish Rugby team under the leadership of

always having had a busy life in our business I have found time My role in LIA commenced in 1980 when I first joined LIA and Declan Kidney

to also spend quality time with my family - hopefully my almost immediately became an active member of the Dublin No matter what service or industry you're in, my firm belief over

retirement from full time employment will enable me to spend Committee. Between 1980 and 1995 1 filled many roles in LIA,the years is that the best way to grow your business is through

even more time with our new extended family, including our eventually becoming a director of LIA UK and Ireland (as it was consistently providing a quality competent personal service to

two daughters-in-law, Roisin and Lyndsay, and our son-in-law to constituted at that time),and being elected President of LIA UK your clients. There really are no short cuts or magic solutions.

be, Colm. Colm and Fiona are to be married on the 25th of and ireland for the year 1989 / 1990. Providing a consistent quality service, maintaining regular ..,-September this year, which we are all greatly looking forward to.

This was an important development for LIA in Ireland, as it contact with your clients,and doing as you say are all the basic

brought us into very close contact with senior members of LIA things that, if you do them consistently over time, will inevitably

Q Could you tell us a bit about your career path and in the UK, and the very worthwhile working relationship we help to grow your business.

how the role you have held in LIA since its inception in developed with our UK colleagues played a significant role in Within our business, the one big trend I've noticed since IIreland evolved? the eventual establishment of LIA Ireland in 1993. In addition started is the growth in pensions and the need for retirement

I started in financial services on the 31st of December 1961 to working in my brokerage I also played a part time role in planning. Most people want a secure retirement and we can

the day Telefis Eireann began (as RTE was called at that time) managing LIA Ireland during the period 1993-1995. At the help them to attempt to achieve that, within the resources

hinitiationlr Itao hec s essnwas) as sa orneeservkesta

reque of the Board of Unrelae s1t

acceptedmtbh role 50f CEO available to the client.

Templeogue,Terenure and Kimmage districts of South Dublin. I Q With your recent retirement as CEO of LIA Ireland

smeem crycme af rsmymm of trannds dt!

nly first callo g my 0, Can u gieedourerea ers brief deosc tion of what w 's next on your horizon both professionally and

princely sum of one shilling and six pence from a Pauline now entailing?Moore in Flanagan's (as it was then called) butcher shop at Those who know me understand that I was always very muchCrumlin Cross, Dublin 12. I spent six years in this role and I have been privileged to be so closely involved in the inclined to work long hours, whether it was in my days as an

Pictured at Brendan Glennon's retirement functionenjoyed every minute of it. I believe it was a great introduction development of LIA over the past 30 years, particularly in my advisor/broker/LIA volunteer or as an LIA employee. Theto the business - calling on so many people's houses, getting role as Chief Executive over the past 121/2 years. LIAs opinion has frequently been expressed that I would be unlikely

Top, left to right: Sean O Dwyer, Joe Whelan, Willie Holmes, Rory Riordan,

to know a lot about the people you collected premiums from membership has increased dramatically over the past few years to change from being a 'workaholic' to spending all my time on o

i .right Clive Holmes, Tommy Coyne, Terry Hardiman,

each week (called fact finding today!), experiencing the joys to its current level of 7,400. I am delighted that my successor leisurely pursuits - and that in fact is what has come about. I

20 The Professional Insurance Broker The Professional Insurance Broker 21

PENINSULA

1

Deposits:Shelter from the StormBy Aideen Moran, Head of Intermediary Sales, Anglo Irish Bank

Commenting on its latest Economic Outlook, published recently, can turn a savings habit into a nest egg. Arising from that,

acting OECD Chief Economist Jorgen Elmeskov described recent banks keen to encourage that savings habit now offer very

turmoil in the financial markets as a "near perfect storm". attractive regular saver rates, often well in excess of typical

According to Elmeskov, the odds have improved that the worst is lump sum rates.

Over in financial markets. But until such time as those odds get The Financial Regulator this week published its first ever

better still - unless they have Bertie's luck with the horses - regular savings account comparisons on its personal financemany investors are looking to deposits to weather the storm. website (www.itsyourmoney.ie). The comparisons highlight

that interest rates on regular savings accounts vary from 3%Rising Deposit Returns to 8% .

The good news for savers is that while Interbank markets remain. . . + DEMAND, NOTICE OR FIXED?Illiquid, banks are becoming more and more competitive on .

. Your decision depends on your need to access the funds anddeposit rates - highlighting their demand for customer deposits.

your expectations for future interest rate movements.So now is a good time to look at your cash position and makesure you're getting the best possible return on your money. - Demand accounts offer variable rates of interest and

access to your funds immediately.Despite the better rates on offer, Central Bank figures for March

2008 show that just under £40 billion of household deposits in - Notice accounts also offer variable rates of interest but, in

Ireland still earn an average rate of interest of just 1.47% ! The return for a better rate of interest, require notice before

OECD forecasts domestic inflation to rise from 2.9% to 3.4% this making a withdrawal.

year. Interest rate predictions suggest the ECB interest rate of 4% - Fixed rate accounts offer a fixed rate of interest over a set

should be maintained. period of time but usually offer little or no access to your

funds during the period without penalty. In addition youFactoring Deposit Interest Retention Tax (currently at 20%) into do not benefit from interest rate rises during the term,the equation then, just to stay ahead of inflation, savers should though you are protected from falling interest rates.insist on earning a minimum of 4.25% gross on their excess funds

for the foreseeable future. If your view is that rates will rise you should stick to variabledemand or notice accounts; if you expect rates to drop you

To allow savers to make an informed decision, websites such could do well by fixing in for a longer term at the higher ratesas The Financial Regulator's www.itsyourmoney.ie and on offer today.www.irishdeposits.ie list the deposit rates on offer from all thevarious financial institutions. + TAX BENEFITS

One of the advantages of deposits for marginal rate taxRisk and Security payers is that the tax on deposit income is less than that for

While shareholders and not depositors suffered in recent high dividend income. Approved pension funds and those aged

profile bank failures, undoubtedly consumer sentiment has been 65 or over benefit from an exemption from DIRT on their

impacted by those events. deposit interest.

The Financial Regulator's Deposit Protection Scheme can provide + THINGS TO WATCH OUT FOR

compensation to depositors if a credit institution is forced to go - Beware of headline rates that plummet when the

out of business. It covers deposits held with banks, building balance in the account goes over a certain maximumsocieties and other types of deposit-taking institutions, but not .

credit unions. The maximum amount that can be claimed under - Know what penalties apply for early withdrawais and how

the scheme is 90% of all deposits, subject to a maximum to avoid them

compensation payment of £20,000. - Find out if any fees or charges will apply

. . . . . . . - Look for interest rate guarantees, e.g. guaranteed to atWith this in mind more and more savers are now diversifying their

. . least equal the ECB ratefunds across a number of financial institutions.

- Read all documentation carefully, especially the small

Choosing the right deposit option print

+ REGULAR SAVER OR LUMP SUM? - Finally, if it sounds too good to be true, it probably is]

You can choose from a wide range of products depending onhow much you want to save and what access you need toyour money. The Special Savings incentive Account

phenomenon has shown Irish consumers how quickly they

The Options for Investors in aVolatile Ma r ketBy Eoin Kennedy, Head of Product Development, New Ireland

Equity investors have endured a rollercoaster ride, with more spills than each year is used in determining the level of growth for the year.

thrills over the first five months of 2008. The MSci World index in euro This new feature is in addition to the guarantee on the policy andterms fell by almost 20% by March 17th; however markets then began can be particularly beneficial in volatile times.

to recover and by the end of May the index was down just 11% .

Eco-Funds

Against this backdrop, we have experienced a higher level of caution We are seeing an increase in investor appetite for our Eco-funds.

than normal by customers considering investments over the last few This is because they offer strong return potential, particularly in themonths. However since St. Patrick's Day the markets have shown current environment, as the funds have different performancesigns of improvement and we would certainly be of the view that patterns and behave differently to conventional investments.now is a good time to invest.

For example, if the price of oil increases most conventional equitiesTypically it is these early stages of recovery that investors lose out on tend to lose value. However, demand for alternative sources ofby trying to time the market. Right now there is a significant

energy increases, as does the price those companies can charge foropportunity to capitalise on quality stocks that are priced well below their product - so the companies in which New Ireland's innovatortheir "fair" value. and Alternative Energy Funds invest benefit.

Waiting until markets show strong gains is a common mistake for The advantages of the Innovator Fund product design, which

investors - after all, if you wait until after markets have grown you bundles investments with a low correlation to global equities

completely miss that growth. The effect of this for too many clients together, ensures the fund has many diverse drivers of performance

is that they miss out on the very best days. We are undoubtedly in and provides investors with the opportunity to reduce the overall riskone of those periods where investor confidence will tend to override

of their investment portfolio. This innovation was recently recognisedinvestment rationality, which is why we have developed a number of at the Investor magazine/MoneyMate awards, where the fundspecialised investment products to allay these concerns while still picked up the much coveted Best New Product Award.provlding the opportunity for growth.

Phased Investment ProductsCapital Protected Products

New Ireland's recently launched Phased Evergreen Fund offersNew Ireland's Guaranteed Evergreen Fund is the most successful investors the advantage of spreading their investment over eightguaranteed product in the Irish market. This hugely innovative bond

months, smoothing the peaks and troughs of their entry into thegives your clients access to the superb growth potential of the

world of investments.award-winning Evergreen fund, while also giving them the comfort

of a 100% capital guarantee. As a special introductory offer, any investments received before

in addition, we have recently enhanced our Guaranteed Evergreen August 31st will benefit from:

product by introducing a performance lock-in feature. The industry + A minimum return of 4% p.a. on the cash element of the fund

standard for this type of product feature is to lock in 80% of the + No management charge on the cash element of the fund.highest policy value. However New Ireland have pioneered a new

concept in performance lock-ins, offering clients an annual In a volatile market, phasing investment into the stockmarket is the

performance lock-in of gains over 6% , where the highest unit price best possible way to spread the timing risk of investing.

Top ten reasons why investors should be getting back into markets

1 By pumping billions of euro into the financial system,world central banks have clearly signalled they will intervene to limit the effects of the credit crunch.

2 While economic growth around the world has weakened,it remains positive,with consensus estimates for the US (1.3%), Europe (1.9%), Asia (4.7%), the UK (1.6%)and Ireland (2.9%) all remaining positive for'08 (source: Consensus economics April'08).

3 The emergence of the "consumer class" in India and China means the world economy is no longer reliant on the US; while a US slowdown is unhelpful, it doesn't haveanything like the same impact as in the past.

4 The worst of the current crisis may have been St Patrick's Day with the near failure of Bear Stearns. Markets rebounded strongly in April.

5 Stock markets have already priced in a lot of bad news about the credit crunch and are now looking beyond these issues.

6 Many stock markets are at two-decade valuation lows. Earnings growth rates may have been falling, but have remained in solid positive territory.

7 The property market is already presenting more bargain opportunities than it has had for many years. We're now seeing a buyers' market,after years of a sellers' market.

8 The Irish economy remains robust with high savings rates, ample cash and continued positive growth. There will inevitably be some bad news in the local market in theshort term, but don't let that distract from the wider picture.

9 Private investors always look for too much evidence that the recovery is underway and they miss the best returns. Miss the best ten days, miss 30%of the returns.

10 Wait for the very best time to invest and you'll look back five years later wondering why your money's still on deposit and you've missed all the growth.

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Topic: Using Technology forI ' Better Financial PlanningM By Paul Armson, Prestvvood Software Ltd.

In the last ten years software for financial professionals hascome to the fore. Unfortunately, the majority of softwareavailable for Financial Planners has one major failing - itprovides for the needs of the advisor or planner but not theclient themselves. The problem with technology is that it can

take away the personal touch. A simple example is softwaredriven fact finds. These are great for data gathering of 'hardfacts' but an enduring client relationship is not just about hard

facts, as the best Financial Planners know.

Now, more than ever before, clients want to know the truth

about where they are heading financially. They may haveassets, investments, and/or high levels of income, but most Finally, the third and arguably least important job is that of

people have no idea what it all means, or what sort of financial transacting investment, protection or other financial products

future they are going to get. necessary for the financial plan to work - but based on the

Put the client's needs first, and planners will understand why client's real lifestyle planning needs.

more and more advisors are now turning to 'lifetime cashflow isn't it funny? Most of the industry's attention is focussed on

forecasting tools' to help clients make sense of their money. the 'third', least important job. That has to change if the sectoris to move forward. Here, it is key to look at why the right

But software is just software. It's what you do with it that software can help sector professionals become better Financialcounts. That's why I run seminars helping advisors to move Planners. A comprehensive financial planning tool, whichtowards an advice based 'lifestyle financial planning' process. includes a comprehensive lifetime cashflow forecast, can reallyWithout doubt one of the ideas 1 share with planners and on help focus on the client's desired lifestyle needs. Why? Becausewhich I get some excellent feedback is the idea that great it forces planners to ask questions about the client's real wantsadvisors actually do three jobs for their clients - each of which and real needs. And if planners do that, the focus is definitelyshould be paid for- away from financial products and on to giving the client what

The first and most important job I refer to is the job of 'life they really want.

planner': in other words, helping clients identify their real needs once the information is presented to the client it is like being

and objectives. What is it they want out of life? This, for most armed with a crystal ball. This gives planners the power to help

clients, revolves around lifestyle needs. This in turn revolves clients take a look into their future, and if they do not like whataround expenditure requirements in order to plan for and they see, more often than not they can still do something

achieve that lifestyle. This first job is the job that clients love about it. That is immensely powerful and a service which

most, because it is about them, about what they want to do in clients will thank planners for, time and again,

their lifetime. This is the 'job' that builds relationships andcreates long term trust. The focus here is firmly on what the Financial planning software can be a planner's secret weapon

client wants, not on products. to clearly separate their service into three distinct jobs - firstly

life planning/ Iifestyle planning, secondly financial planning

The second job I refer to is that of 'Financial Planner'. Having (using software), and finally transacting the required financial

identified what the client wants out of life the Financial Planner's products. By separating their service into three jobs they alsojob is to identify all resources available to the client right now; all create more opportunities to be paid. And because theresources which may be coming available to the client in the solutions planners provide help clients identify and achievefuture; and, most importantly, the resources which might need to what they really want, they'll happily pay more for the threebecome available in order to achieve the clients' lifestyle goals. important jobs that planners do.

This is where the right financial planning software (includinglifetime cashflow forecasting) is paramount. The right softwareused here can help the client to see their current and futurefinancial position based on agreed assumptions. This helps the

client understand the need for action; this could be as simple

as saving more or perhaps spending more depending on theclient's situation. More sophisticated solutions can of course be

easily identified, with various 'what if' scenarios illustrated.

Broker's WoloeBILLY MORGAN FINANCIAL SERVICES

A Game of Two HalvesAn insight into Billy Morgan Financial Services: the brokerage and the footballer behind it

THE FIRST HALF...

In 1989 Billy Morgan left the job security that came with Secondary r; *

teaching and moved into Financial Services. This would be a brave

move at any time but even more so as it was in the aftermath of thecrash of '87. Billy euphemistically says 'The market was still a bit age. -

down'. He remembers that consumers and lenders tended to be V3'more cautious than those during our recent boom. His initialproduct focus was on Life and Pensions and savings policies, a 0lucrative area during a more conservative time.

Eight years later, in 1997, with another brave move from the secure tothe unknown, the brokerage Billy Morgan Financial Services was born.

Having worked in large organisations including Sun Life and Eagle Star, byBilly wanted to ensure that time was always given to understand eachclient, their specific requirements and the best financial products for Billy Morgan with son Brian and nephew William

them. Just as with football, Billy always firmly set his sights on the goals!blue-chip organisations including AIB, Anglo Irish Bank and Irish Life and

Football is a large part of Billy's life and he played his way up the specialises in Mortgages and General lending/finance products. While hisranks with local club Nemo Rangers and the Cork Senior Inter- financial expertise is proving a fair match for his father's, Brian's footballCounty team from 1966 until the 1980's. He is regarded by many as skills are not quite there '1 never reached the level that my father playedthe soul of Cork football and considered to be one of Cork's greatest at but, as a former Cork Junior Captain, the family joke is that I have aever players. During Billy's fifteen-year career he won an All-Ireland better kick out! ' laughs Brian; and he then concedes that Billy disagrees!title, five Munster titles, one National Football League title and five

Railway Cup tities. As manager he guided Cork to A| | -ireland tities in Billy's nephew, William Morgan, also joined the board in 2008,

1989 and 1990. Billy readily admits that combining finance and making it even more family-centric. 'Billy Morgan Financial Services

football was 'Like having two full-time jobs simultaneously'. is going to be around for the next generation' said Billy 'We are

building a brokerage that will be there in the future'.

THE SECOND HALF... . -

With trusted and experienced family members working alongside, BillySkip to 2008 and the industry is still reeling from the recent property has been able to concentrate on the foreign property market, with workslump. Billy's son and business partner, Brian Morgan acknowledges taking him to destinations including London, Portugal, Cape Verde,that 'Things are tightening up. The volume of mortgages is down, Germany and Budapest - payback for hard work in the early years!lenders are stricter in their lending practices, investors are seeingshare portfolios plummet. It's not a totally dissimilar situation to the Anyone who reads the sports pages will know that in 2007 Billy

one that my father experienced when he joined the industry first' stepped down as Cork football manager. The silver lining is that he

Billy interjects, 'Those of us who worked during the '70's and '80's finally has more time; 'Managing the team was almost a full-time job

know that the wheel will turn again.' for me over the last couple of decades.' admits Billy. However, hestill keeps an involvement by training the Nemo intermediate team:

'On a positive note' said Brian, 'because house prices have decreased 'A good bunch.' Billy has transferred the passion and energy heover the last couple of years, many consumers feel that now is a good exuded on the pitch into his office,time to buy. We're finding that the savers with deposits of at least 10%

are coming to us for mortgages. We're also seeing an increase in With such a rich heritage and strong team on side, it will be quite

mortgage switching requests. A challenge for us now is Life and Pensions; some time before the final whistle is blown on this brokerage..

this area was ignored during the Celtic ilger by many who opted to spend

on property. Income protection,life and pension products were neglected

and this shortfall is now being recognised and addressed by our clientsA// queries relating to this article can be directed to Brian Morgan,

Billy was delighted to welcome his son Brian to the board of Billy Company Director, Billy Morgan Financio/Services, 78 South MainMorgan Financial Services in 2003. Brian did his'apprenticeship' in Street, Cork (021)4222734. www.bmorganfs.com.

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UpdatesDate Event Time Speaker / Venue

Wed 02 Jul 08 Update from 09.00 am to 10.00 am Joe Meade, Financial Services Ombudsmanthe Financial Services Ombudsman

(1 formal CPD hour opplies) The Clarion Hotel, Clarion Road, Sligo, Co. Sligo

Thu 10 Jul 08 Employment Practices Liability insurance 01.00 pm to 02.00 pm Breege Lynn, Marsh Ireland

(1 formal CPD hour opplies) The Insurance institute, 39 Molesworth Street, Dublin 2

Co. Dublin

Tue 09 Sep 08 Mortgages and Client Management 05.00 pm to 07.30 pm lan Duffy, Eanna McCloskey

(2 formal CPD hours apply) The Clarion Hotel, Lapps Quay, Cork, Co. Cork

Wed 10 Sep 08 Business Interruption 10.15 am to 11.15 am Martin Barry, Pro-Adjust

(1 formal CPD hour applies) Courtyard by Marriott Hotel, Headford Point, Galway, Co. Galway

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