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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