Home-of-Financial-Planners.pdf

7/28/2019 Home-of-Financial-Planners.pdf

1/3The 4E Journal 27

The Homeo Financial Planners

This caption signies our approachand commitment as an independent

adviser to all our clients. Establishedsince 2002, we are currently one o

Malaysias largest and astest growing

ee- and commission-based independent

nancial planning rm. Our practice

approach has always been our value

proposition to highly complex wealthyclients as well as high net worth clients.

These two groups o clients have been

successul in their wealth accumulation

strategies which have made them

extremely wealthy and highly esteemed

in society. As a company, our convictionand the approach to our practice is ...

If its worth striving for,

its worth preserving.

This belie persistently reminds us that

hard earned wealth must be preserved

and protected or posterity. Hence to

have wealth that lasts or generations

to come, these clients need to developcritical thinking o wealth preservation

strategies which will back their wealth

accumulation with better tactical asset

class allocation with multi diversication

strategies to manage risk or return. And

lastly, wealth distribution via generational

wealth strategies or perpetuity purposesto their beneciaries. Our P.A.D model

illustrates this concept and emphasizes

wealth preservation above wealth

BUSINESS MODEL

January - March 2010

By Alvin Yap

At A.D. FINANCIAL, we start our Relationship by listening to you and putting YOU FIRST.

One of Malaysias premier financial planning firms since 2002

A leader in providing comprehensive financial services for mass

affluent to high net worth individuals

Authorised and Paid-Up Capital: RM1 million

Holder of:

License No: CMSL/A0186/2007

Capital Markets Services License (Financial Planning)

Capital Markets Services License (Dealing in Securities Unit

Trust Products)

Bank Negara Malaysia licensed Financial Adviser

FIMM Registered Corporate Unit Trust Adviser (CUTA)

Registration No: CUTA 704

accumulation and distribution. P stands

or preservation, A or accumulation and

D or distribution; in that order. The next

diagram clearly spells our approach tothis segment o clients.

PRESERVATION ACCUMULATION DISTRIBUTION

Critical Thinking ...Chronology of planning for High Complex and Wealthy / High Net Worth clients ...

( P ) ( A ) ( D ) Preserve wha you have earned.

Protect wealth from any potential

liability.

To further accumulate what has

been preserved.

Enhanced Famly Wealth for

Generations.

Effective distribution, prevention of

asset shrinkage, maintenance of

confidentiality and certainty of heirs.

Generational Wealth Strategy for

minors, squandering and spendthrift


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Independent Advice

Fee-Based Advisory Services

Advisory service is clearly our orte which

we have developed through many years

o experience in solving the various

problems aced by our highy complex/

high net worth individuals. The diagram

below shows the advisory services thatwe oer to our three dierent categories

o clientele.

All advisory services are chargeable and

our advisory ees are dependent on the

complexities o each client/individual. Theees are calculated based on the ollowing

our methodologies.

Time CostFor mass auent clients withwealth that have low to moderate

complexities. For example, one amily,

ull-time employment, and i business

owners, up to three companies, no

oshore assets, will planning insteado will writing, some encumberedassets and no vulnerability to asset

shrinkage and lawsuits upon death.

We charged between RM350/hour to

RM550/hour

Asset BasedFor highly complex and wealthy aswell as high net worth clients with

wealth that have moderate to high

complexities. For example, clients

who have more than one amily;

amily euds; many business and

proxies arrangement with business

partners; many oshore assets;are vulnerable to lawsuit and asset

shrinkage upon death; and run

successul amily business, but are

unable to pass down the baton to

the next generation. In the event that

they exit the company, they will havelots o unencumbered assets but

unable to determine their net worth,

and they may ace the possibility o

having squandering heirs. The asset

based ees are at 0.3 percent to 0.7

percent or the lowest range, whilethe mid range ee is between 0.8

percent to 1.8 percent, while the

upper range ee is up to 3 percent o

their gross net worth.

RetainerFor clients whom we have regularengagements and whose les are

in our custody. This ee structure is

also used or modular engagements,

or example, a three- to six-month

engagement, and are usually less

complex, or instance, easibility

studies on the vulnerability o the

current structure o corporate set-up

with their partners, lawul strategies

or asset protection in the event o alawsuit, and special child planning.

HybridThis ee model can be a combination

o any o the above.

Typically our advisory ee ranges rom

RM30,000 to RM80,000 per client, or

three to ve months o work depending

on the complexities o the case. The

highest ee we have billed to date is

RM280,000.

Mass Affluent

Clients

Financial Planning Retirement & Education Fund Planning

Insurance Planning Investment Planning

Estate Planning Cash Flow Management

High Net WorthClients

Family Office Services Family Trust Planning Generational Wealth Strategies

Asset Protection & Preservation Planning Business Succession Planning

Corporate Will Planning

Highly Complex &

Wealthy Clients

More than one family (feuds & squandering heirs)

Many offshore assets Too many companies offshore and onshore

Vulnerable to lawsuits/bankruptcy Many proxies/nominees

Muslim Converts and its complexities


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Complex and Wealthy/High Net WorthMuslim and non-Muslim clients, Family

Ofce Services, Personal Lie dealing with

lie insurance products, Corporate Risk

dealing with general insurance product

and Investment Planning divisions.

In addition, we conduct weekly product

providers training and core group

meetings as well as regular seminars and

events or both our nancial planners and

their clients. We also have a dedicated

division to assist our nancial plannersin their compliance and licensing

requirements. A.D. Financial also invests

heavily in its back-end inrastructure

support to enable the provision o bi-

weekly commission payouts, online ClientManagement System (CMS), personalised

email addresses, online news bulletin/

le library, SMS and email notications,

nancial planning tools, investmentanalysis sotware and many more. All this

is done to ensure our nancial plannersare competent, protable and have a

distinct advantage in the marketplace.

As one o the premier nancial planning

rms in the country, we have always

benchmarked ourselves against our peersin the industry. The ollowing table shows

how we are against other independent

nancial planning rms in Malaysia. We

strive to maintain our leading edge in

providing the best nancial planning

practice model and to be the last stop oraspiring nancial planners searching or a

rm to build and grow their business.

I you are a CFP/RFP designee aspiring to

practise independent nancial planning,we welcome you to get in touch with us

to explore how we can help you realise

your dreams.

Independent Solutions

Multiple Product Providers

As an independent and licensed nancial

planning rm, A.D. Financial partners and

collaborates with major industry players

to provide better and a greater variety

o choices to clients demanding moredepth and diversity to available nancialproducts. In other words, we represent

the clients interest by sourcing or the

best products to meet their nancial

needs rather than representing a single

product provider only.

We currently have:

8 Onshore Lie Assurance Companies

> 10 General Insurance Companies

> 20 Unit Trust ManagementCompanies

> 200 Onshore Unit Trust Funds

> 400 Oshore International

Investment Funds

Local & International Trust

Companies

Oshore Lie & General Insurance

Companies

And more will be added in the uture.

Home for Financial Planners

Every aspiring nancial planner will wantto be in a rm that allows them to grow

and provide them every chance o success.At A.D. Financial, providing the best to

our nancial planners is at the core o

everything we do. We currently have ve

specialised divisions all in house to

support our nancial planners. They are:

Wealth Preservation Advisory or Highly

Type

CompanyA.D. A B C

Assisted Advisory Model

Commission Model

Advisory Commission

Product Commission

Full Range of Financial Products

Licenses

Affiliation Model

Overriding Model

Professional Firm Alliance

Financial Planning Specialist Team

Equity and Ownership of Clients

Independent Model

Up to 55%

60% - 80%

FA, CMSL(FP) & CUTA

Producer & Ownership

5

60% - 80%

FA, CMSL(FP) & CUTA

Producer & Ownership

60% - 80%

CMSL(FP)

?

?

10% - 15%

60% - 80%

FA, CMSL(FP)

?

?

?

?

How We Fare?Competitor Analysis* -- Independent Firms Comparison Matrix (as at September 1, 2009)

*Aspiring nancial planners are advised to veriy the contents o this table with each FA rm beore afliating themselves

Alvin Yap is the CEO o A.D. Financial SdnBhd (ormerly known as A.D. Capital Sdn.

Bhd). For more inormation, do contact him

at: +60-3-7956 8833 or email him at: ino@

adnancial.com.my

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Home-of-Financial-Planners.pdf