Maybe circumstances are forcing you to consider selling out your much-loved boutique IFA practice to a larger firm or consolidator.
Perhaps your PI insurance premiums have gone up 500% with major exclusions, and on top of FSCS levies and compliance network fees, you seem to be paying everyone else and not yourself.
Potentially you are becoming increasingly irritated by the decisions of your compliance advisers, it seems like you can no longer put the client first and must cover your back all the time instead.
Possibly you can end up carrying massive liabilities arising from past sales, carrying them to the grave.
Imagine this. You carry on doing what you love with your own business, with a happy consolidator writing you a big fat cheque for your book. And, your new service is non-competing, so you don't have 'no-contact' clauses to worry about.
Picture this. PI insurance premium less than £100. No FSCS levy, no compliance network fees.
Here, there's no compliance red tape, as there are no regulations impacting your chosen line of business.
What if you were to deliver great client outcomes, adding huge value to your customers, AND you still do financial planning without liabilities for stuff that goes wrong as a result of other people's mistakes.
For your 60-minute consultation to discuss your mentorship and training requirements, please order via our Shop. The price is £45. Place your order today and we will contact you within two-working-days to arrange an appointment at a time that is convenient for you.
Well if stuck in a rut is where you are and a flying success is where you want to be, then I'm sure you would agree, you need a new system, vehicle or solution to get you from A to B.
Well that's what this is ...
I'm here to show you a new way of working. Separate advice from product. Place a wall between them. Focus on advice through financial planning. Leave the product side of it to your client.
You become non-intermediating and therefore non-regulated. The cost of regulation disappears. You charge the clients fixed fees. You add value for them just as you did before. Your profit margins rise. You act as a fiduciary adviser, placing their interest first. No muddying of relationships with commissions.
Here's the thing ...
When you cut out regulation, you cut out verification of identity, signing of documents, and handling of client money. Which means you can run your business online, from your own home. Your business is uninterrupted by covid-19!
You can also pass on efficiencies from economies of infrastructure and scale to your clients. This makes non-intermediating financial planning lower cost to the consumer, whilst adding just as much value for them and maintaining your profit margins. It's what I call a perfect win-win scenario.
It's often referred to as PROPER FINANCIAL PLANNING, sometimes as LIFE PLANNING or FINANCIAL LIFE PLANNING, technically speaking, I call it:
FEE-ONLY NON-INTERMEDIATING FINANCIAL PLANNING.
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It's important because ...
Because the Year 2020 could not only mark the end of the Boutique IFA firm ...
... cv-19 could change the face of financial planning as we know it, forever!
As a financial practitioner you will know that mastering financial planning requires years of training and professional development in the art, as much as it does the science. We can help in both areas.
Steve Conley has trained hundreds of thousands of financial advisers since he became a chartered financial professional back in 1989 and he went on to lead and train advisers with some of the largest financial services companies in the UK.
He trained thousands of insurance company sales representatives in the 1980's and 1990's. He trained thousands of bank advisers for the brands of HSBC, Royal Bank of Scotland Group and Santander in 2000's. In the past decade, he has been a Master Life Planner devoted to training independent financial advisers in the practice of the trusted adviser - planning the client before planning the money.
Having left the banks in 2012, he started practicing life planning rigorously and intensively studied under master George Kinder. He started teaching life planning at the Academy and has since become a best-selling author.
He has the science mastery in his award-winning professional examination success and he have the arts mastery in his development of global leading Kinder Institute methodology into my GAME Plan methodology, described in his best-selling book - Your Money or Your Life: Unmask the highway robbers - enjoy wealth in every area of your life.
He is today the master financial planner, the go-to expert for any aspiring financial planner. Today, he mentors selected advises in the art and science of financial planning.
As founder of AoLP, Steve spread his teaching all over the world, from big cities to remote villages, and from universities to schools. He became famous throughout the industry for the GAME Plan (a multi-dimensional planning tool – mind, body, heart, spirit and bank account) that he gave this to people from all walks of life, without making any personal distinction or discrimination.
If you would like to be his next prodigy, why not call us.
Ongoing Mentorship is £45 per month (or £450 per annum). Book via our shop. This includes:
"It's a shame I can only give Steve 5 stars and if I could (give more) there would not be enough anyway, as not only will any interaction with Steve enlighten your existing beliefs on how we should treat clients, it will do something more powerful than that.....it will give you belief to re-evaluate yourself." Paul Hoyle, IFA, 2017
At the Academy we train, accredit, register, mentor and partner with financial advisers and life coaches from around the world. This makes our mentees the most trusted advisers globally. While other advisers pursue share of wallet, our advisers pursue share of heart! As a result of the trust created, our adviser community become more and more successful in every area of their practice. Watch Peter's story. In just a couple of years from becoming a mentee, he became a top 10 financial adviser nationally in terms of sales and on 23 February 2019 he became one of The Times top 250 financial Adviser in the UK. An achievement Peter repeated on 8 February 2020.
The UK's most trusted newspaper's most trusted financial advisers for 2019 and 2020.
"Before 2015, I was doing what the textbooks taught and what every other financial adviser was doing. It was very product driven. I looked at the client’s money and identified a product to sell. It was very driven by the textbooks and the company I worked for. I was reluctant to put client objectives and goals in place, because of the fear of missing them and not achieving those outcomes. I went on a bit of a journey; I didn’t know where I was or where I was going. I did know that I was unhappy with what I was doing, it was too product driven. It was the objectives being placed on the client, rather than the clients setting their own. I didn’t really know what the answer was until I met Steve. In 2016, I met Steve at a networking event where he began to educate me on how it perhaps should be. I was a little bit slow to take it up or to catch on in the beginning. Through further reading, meetings and conversations with Steve … it really just became apparent that there was a better way of doing things. That feeling in the pit of my stomach disappeared and it just felt like it was the right way to do it. Once the penny drops. That’s it. There’s no turning back. It’s really empowering as an IFA to know that I’m doing it the right way. This is how it should be done. The money isn’t the client anymore and that’s how it was. Now it’s all about the client. It’s their goals and objectives that drive the process. The business has gone from strength to strength. From starting with an organisation of 160 partners nationally, with little experience as a relatively newcomer to the advice side of financial services, in a little over two years we are now in the top 10% partners in the firm. It would not have taken place without this approach. I have absolutely no reservations about how we do what we do. The figures and our position speak for themselves. We are set to have a fabulous year. As a result of life planning, we are adding value to the client constantly so they’re really happy doing business with us. When we see feedback on sights such as ‘vouched for’ we see ourselves featured in 2019 as one of the Times’ top rated and best financial advice firms in the UK. What better validation than that!"
- Peter Johnys, 2019.
If you are pursuing a career in financial planning you can choose the intermediating or non-intermediating routes. An intermediating financial planner (or financial intermediary) is required to be registered and regulated by the Financial Conduct Authority (FCA).
Financial planning itself is not a regulated activity.
If you always wish to act in the best interest of your clients without conflict of interest, then you might further consider being a fiduciary financial planner. That is, you are fee only and there can be no conflict of interest.
A non-intermediating financial planner is a fiduciary financial planner.
Financial intermediaries find it difficult to sign up to fiduciary codes because they find it difficult to undertake to always act in the client's best interests.
When financial planning for consumers, the greatest value added in the services you provide is in the provision of the financial plan itself, rather than adding value through financial intermediation. Indeed, when adding intermediation fees to the price of a product, the financial intermediation route is often more expensive than the consumer buying the product direct from the provider.
Some might argue that financial intermediation may lead to better outcomes for consumers. It is certainly more convenient to have someone make investment decisions for you. But at what cost?
When it comes to investing life savings, few financial intermediaries can improve upon the outcomes achieved using passive retail multi-asset funds on platforms. These are relatively simple for the consumer to set up and maintain. The savings for the consumer can be as much as hundreds-of-thousands-of-pounds over a lifetime from the direct route.
When planners realise that the greatest value is added by the non-regulated activity, they may begin to question the rationale for being regulated.
Regulated activity adds considerably to the time and cost of the financial planning process. It also makes it difficult to maintain client relationships remotely, with all the proof of identity, signing of documentation and trust required to handle client money. It's difficult to apply social distancing measures when you are regulated. It does not necessarily lead to better outcomes for clients.
Certain transactions can only be undertaken by a regulated financial intermediary, such as a pension transfer from a Defined Benefit scheme. Non-regulated financial planners may therefore need to refer consumers to regulated financial planners from time-to-time.
It should be noted that today ninety-five percent of the population are underserved by the financial intermediary population on account of their limited wealth. Financial intermediaries often operate with thresholds of investable assets held by consumers, below which they will not operate. A typical threshold might be £100,000. Due to the economies of infrastructure, non-intermediating financial planners can serve the underserved at far lower thresholds at prices they can afford.
A major part of the financial planning process is planning the client before planning the money. In order to do this effectively the financial planner must also be an expert and experienced life planner.
If you are considering becoming a non-intermediating financial planner, or you are a financial intermediary wishing to learn the art of this style of financial planning, please contact us to discuss our mentorship, training and accreditation services.