Support For Non-Intermediating Financial Planners And Their Firms
We see financial planning in transition. In the past, there was the regulated financial intermediary who offered financial planning. The regulator admited that there were too many individual
financial intermediaries to regulate, it was easy for bad actors to hide.
Moving forward, there is the 'Non-intermediating' Financial Planner.
Where there is a wall placed between planning and intermediation, the planner becomes the financial regulator. We specialise in
supporting Non-Intermediating Financial Planners, as a service integral to a regulated firm or as a separate non-regulated business.
We take a real hands-on interest in your business, where you will feel part of a team. We help Non-Intermediating Financial Planners to grow their businesses compliantly, professionally and
profitably. We instil confidence in your business in both principles and profit. Morals and money.
We offer the Non-Intermediating Financial Planner the job lot. Our range of services include the sharing of a license-free blueprint, compliance advice, marketing support, general guidance,
business documentation, processes, coaching, training, webinars, helpdesk support, events, and much more.
We Move With The Times, So You Can Too
The journey from an intermediating financial adviser to a non-intermediating financial planner is often more challenging and time-consuming than people think. We help you save time and money. For
those who successfully complete the journey, the rewards for firm and clients are immense.
The Academy of Life Planning adviser support network will give you the blueprint, tools and practical help to shorten your journey as you transition to non-intermediating financial planner. We
believe we are the first network to offer to support you in setting up and growing a successful non-intermediating financial planning firm.
We deliver online support and personalised solutions to a global network of online non-intermediating financial planners and their firms. With a focus on non-intermediating financial planning, our
members are typically small life and financial planning firms around the world, servicing a global village of clients online.
Our virtual support team and membership are knowledgeable, friendly and there to help. They are extremely helpful in all areas and have the appropriate knowledge, experience and qualifications
relevant to their roles and the areas on which they may be assisting our members.
How We Do It - We Communicate Regularly
If buying support works well for you, our specialised support is second to none. We keep up to date with current regulations. We provide impartial views and recommendations. We are very
approachable if ever you have any concerns. We deal with things efficiently and quickly.
Our core service brings together the best in online and over the phone support. This level of support is designed to:
- Provide face-to-face one-to-one mentorship support for the same price as typical automated programmes.
- Provide an 'out-of-the-box' non-intermediating financial planning business model for you to adapt, use and share, because disruptor business models are completely different to what's
- Provide you with a tried and tested planning process suitable for non-intermediating financial planning, with utmost professionalism and efficiency.
- Keep you informed of relevant issues – saving you time searching for and reading articles, regulatory reports and surveys.
- Provide you with up to date guidance and specimen procedural documents – saving you time in creating documents from scratch.
- Provide you with someone to email for those difficult day to day issues – giving you reassurance that you are adopting the correct approach. You can always email us and a suitably qualified
person will reply at no extra cost.
- Provide you with a comprehensive development programme for you and your staff.
- We are particularly helpful with your step-by-step transition from financial intermediary to non-intermediating financial planner.
Book your one-hour consultation for £49 to find out more.
expect that there will come a point in your career as a professional financial planner where you ditch the product intermediation
The cost-value perspective.
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. This is because investment returns have been commoditised.
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? And,
do those decisions add any value?
The evidence overwhelmingly shows that only around 1% of wealth managers beat the market, over the long term, net of costs. Furthermore, those very few wealth managers that do
outperform are almost impossible to identify in advance.
Transition from product sellers to professional advisers.
Financial planning used to be product advice. Financial planning of today is more than just products, and not only includes financial solutions that manage wealth, but includes strategies for
making assets in the first place. Such as, a three-year business plan.
Good financial planning also includes goals that money can’t buy such as respect, well-adjusted kids, work-life balance, life purpose, good friends, close-knit family, good health, peace of mind,
happy memories, true love, a happy home, good karma, time to relax, a good epitaph. The list goes on.
Traditionally a financial planner was a salesperson for a product company or number of product companies. When financial planning today, nine times out of ten, the task is to improve life here and
now. Which means, nine times out of ten, the solution is not a long-term investment product. The solution is a financial plan, including the three-year business plan of you.
Improving the short-term financial situation for the client will automatically improve the long-term outlook.
And, with a little knowledge of business planning - and adjusting the 'what if' scenarios in the cash flow forecast - we can ensure the client doesn't outlive their capital by creating recurring
income on the assets we create. The fact is, products don't create wealth. People do!
Since, the modern financial planner is seldom required to recommend a long-term investment product to make good shortfalls, they might instead choose an easier and, with care, a more profitable
career down the non-intermediating route.
Conflicted payments and client best interest.
Another reason for no longer being a financial intermediary, is that these days long-term investment returns have been commoditised and are as easy to access and maintain as on-line banking. The
product adviser cannot hope to beat the return after charges of a low-cost multi-asset fund on a platform.
According to Which? 90% of financial intermediaries derive their fees from the product as a percentage of assets under advice. The more assets they advise on, the more they get paid. How impartial
can advice be relating to what the adviser manages and what they don't manage? What about assets such as those you run direct on self-invested platforms, your property, your business, your workplace
pension, or that other managers run for you? How can a financial intermediary advise on these assets and get paid?
"Show me the incentive and I will show you the outcome.” As Charlie Munger said, vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett.
The savings available for the consumer from saved intermediary charges over a lifetime can be many hundreds-of-thousands-of-pounds, simply by cutting out the intermediary.
Regulators around the world continue to challenge the conflicted payments of asset-based fee advisers, presenting an ever present regulatory risk which threatens recurring revenue streams
supporting intermediary firms and their business valuations.
Fee for service and fiduciary financial planners.
If you always wish to act in the best interest of your clients without conflict of interest, then you might consider becoming a fee-for-service, or fiduciary, financial planner. That is, you are
fee-only, regardless of where the asset sits, and there is no conflict of interest.
A non-intermediating financial planner is a fee-only, fiduciary, financial planner. That is, they act as an agent of the client and do not hold any agency agreements whatsoever with any product
providers. They are guaranteed by client contract to place client best interest first, without muddying the relationship with conflicted payments.
Financial intermediaries are selling agents for the firms they hold agencies with and find it difficult to sign up to fiduciary codes because, in the absence of a wall between advice and product,
they find it difficult to undertake to always act in the client's best interests.
Costs of regulation.
Financial planning itself is not a regulated activity. It is classed as general or generic advice, where it is not delivered in preparation for a regulated activity. A financial intermediary may
deliver financial planning in preparation for financial intermediation, and in the UK is required to be registered and regulated by the Financial Conduct Authority (FCA). A non-intermediating
financial planner is not.
When planners realise that the greatest value is added by the non-regulated activity, they may begin to question the rationale for and additional cost of being regulated.
Life has been increasingly difficult and less profitable for the financial intermediary; because of increasing regulation, its associated cost, and a hardening of the professional indemnity
insurance market; forcing the market to contract as many regulated advisers quit.
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 agency agreements, and trust measures required to handle client money. It is difficult to apply social distancing measures when you are regulated and seeking wet
Certain transactions can only be undertaken by a regulated financial intermediary, such as a pension transfer from a Defined Benefit scheme. Although advisers holding the relevant permissions are
becoming increasingly hard to find. Non-regulated financial planners may therefore need to refer consumers to regulated financial planners with the relevant permissions from time-to-time.
The advice gap and the underserved public.
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 being able to advise
groups of people, non-intermediating financial planners can profitably serve the underserved at prices they can afford.
For more information.
Non-intermediating financial planning is financial planning less the intermediation. If you are considering
becoming a non-intermediating financial planner, please contact us to discuss our membership, mentorship, and accreditation services.