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The clock is ticking… Making use of technology

The clock is ticking… Making use of technology. Presented by John Deane Chief Executive Officer, Royal London Intermediary. The adviser experience - now. admin. admin. admin. MEET CLIENTS. FIND CLIENTS. approach letters. travel. explaining services. newsletters. cashflow planning.

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The clock is ticking… Making use of technology

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  1. The clock is ticking…Making use of technology Presented by John Deane Chief Executive Officer, Royal London Intermediary

  2. The adviser experience - now admin admin admin MEET CLIENTS FIND CLIENTS approach letters travel explaining services newsletters cashflow planning seminars admin admin annual reviews research portfolio management report writing ad hoc queries portfolio creation ADVISE CLIENTS MANAGE CLIENTS admin admin

  3. The adviser experience – after 2013? 12 11 1 MEET CLIENTS 10 2 9 3 8 4 7 5 6 ADVISE CLIENTS

  4. Changing times - regulation Pension Switching Thematic Review Auto-enrolment & Nest Treating Customers Fairly

  5. The customer experience Our analysis of the true cost of servicing clients with modest portfolios suggests that in a post RDR world, advisers will struggle achieve profitability if they seek to apply traditional processes and procedures using the new economic model imposed by RDR. Equally, many advisers have a strong to desire to continue to provide a service to customers across a wide spectrum of incomes and are resistant to the idea of no longer supporting clients outside the “High Net Worth” category. To provide good value to customers at an affordable cost, advisers may need to adopt very different processes to those that they have preferred historically. There may be a need to recognise that good advice that a customer can afford may be better value than “best” advice which involves a level of cost that undermines the benefits. Our analysis of the true cost of servicing clients with modest portfolios suggests that in a post RDR world, advisers will struggle achieve profitability if they seek to apply traditional processes and procedures using the new economic model imposed by RDR. Equally, many advisers have a strong to desire to continue to provide a service to customers across a wide spectrum of incomes and are resistant to the idea of no longer supporting clients outside the “High Net Worth” category. To provide good value to customers at an affordable cost, advisers may need to adopt very different processes to those that they have preferred historically. There may be a need to recognise that good advice that a customer can afford may be better value than “best” advice which involves a level of cost that undermines the benefits. “Pensions - Delivering Value to Middle Britain. A market Perspective. F&TRC 2011

  6. PS 11/09 - Platforms The adviser needs to take into account whether being on a platform is in each individual client’s best interests and ensure any personal recommendation to invest via a platform is suitable. It is important to stress that this will not always be the case. If being on the platform gives the client a materially worse outcome than being off it, (for example, the costs are significantly higher on the platform), the adviser should clearly not be recommending using a platform for that client. We expect an independent adviser to be able to demonstrate why using a particular platform is suitable for an individual client, and this involves not just looking at one platform over another, but also looking off platform when appropriate to do so. The adviser needs to take into account whether being on a platform is in each individual client’s best interests and ensure any personal recommendation to invest via a platform is suitable. It is important to stress that this will not always be the case. If being on the platform gives the client a materially worse outcome than being off it, (for example, the costs are significantly higher on the platform), the adviser should clearly not be recommending using a platform for that client. We expect an independent adviser to be able to demonstrate why using a particular platform is suitable for an individual client, and this involves not just looking at one platform over another, but also looking off platform when appropriate to do so. “PS 11/9 Platforms: Delivering the RDR and other issues for platforms and nominee-related services. FSA August 2011

  7. FSA principles • Firms should only be paid for the advice and services provided1 • Costs must be appropriate to the customer2 Less than £100K £100K+ Individuals holding Personal & Stakeholder pension - fund Size of Individual Pensions : 2007-08 5% 95% Source: Table 7.14, HMRC May 2010 1 CP09/18 Distribution of retail investments: Delivering the RDR FSA June 2009 2Quality of advice on pension switching: an update FSA April 2010

  8. The customer experience • Established 1935 • Profit 2010 - £158m • Fleet size 227 + 4 on order • Established 1995 • Profit 2010 - £154m • Fleet size 186 + 37 on order Traditional service Core service

  9. Full advice service: • face to face • initial and ongoing advice paid up front • Menu of services: • initial advice only • initial plus reactive ongoing service • initial plus defined ongoing service The customer experience Traditional approach “New Model Advisor”

  10. Changing times - technology Blogging websites Smart phonetechnology Micro blogging websites TECHNOLOGY at hand today Social media websites Remote meetingtechnology Emailtechnology Tablet technology Back office technology

  11. Technology Making it work for you: • Consistency • Efficiency • Information handling: • Processing • Sharing • Managing • Storing • Analysing Saves time!

  12. Advice process Platform tools Platform Find clients Meet clients Advise clients Manage clients Cashflow management Database information CRM CRM “Back Office”

  13. Finding New Clients Find clients • Sources • Existing client base • Referrals • Business groups • Websites • Business directories • Social networks • Possible solutions • Website • Banners • LinkedIn • Twitter • On-line advertisements • Word of Mouth • Lead Generation Solutions • Back Office Systems

  14. Meeting clients Meet clients • Tasks • Fact find • Cashflow modelling • Risk assessment • Possible solutions • Financial Planning tools • Go to meeting • Skype • Telephone Fact find solutions

  15. Advising clients Advise clients • Tasks • Valuations • Portfolio modelling • Fund research • Product comparisons • Illustrations • Possible solutions • Illustration tools • Planning tools Comparator 2

  16. Managing clients Manage clients • Tasks • Contacting clients • email • newsletters • Keeping information up to date • Actioning changes • Regular reviews • Possible solutions • Portfolio rebalancing • Contact management • CRM systems

  17. … and managing the business! • Tasks • Time logging • Record keeping • TCF • Case checking • Business monitoring • Commission checking • Staff training • Recruitment & development • Possible solutions • Task management • Back office • Personnel systems • CBT • CPD/Gap-fill tools

  18. Making it work • Integration is key:

  19. Other solutions • Outsourcing • Make full use of staff: • Paraplanner • Admin staff • Providers • Investment houses It’s not all about you! DON’T do everything yourself!

  20. Paraplanners are worth their weight.. • Setting up meetings • Researching products and funds • Preparing and maintaining clients files • Preparing draft report & suitability letters • Checking paperwork • Preparing annual reviews • Obtaining fund values & projections

  21. Summary • Business change is coming • You need to manage your time • Concentrate on what you’re good at • Find someone, or something to do everything else! • Technology is the future

  22. Further Information www.scottishlife.co.uk

  23. Questions?

  24. Important information The information in this presentation is based on our current understanding of current Legislation, Regulations Consultation and Review Documents. These may be affected by future changes. Scottish Life, St Andrew House, 1 Thistle Street, Edinburgh, EH2 1DG.  Scottish Life is a division of Royal London and markets products produced by Royal London.  Royal London consists of The Royal London Mutual Insurance Society Limited and its subsidiaries.  The Royal London Mutual Insurance Society Limited provides life and pension products, is a member of the Association of British Insurers and the Association of Financial Mutuals and is authorised and regulated by the Financial Services Authority, registration number 117672. Royal London Marketing Limited acts as an insurance intermediary for other providers of general insurance and other life assurance products and is authorised and regulated by the Financial Services Authority, registration number 302391.  RL Corporate Pension Services Limited provides pension services and is authorised and regulated by the Financial Services Authority, registration number 460304. Please note that Scottish Life is not specifically recommending any of the external software shown, and are not responsible for the content of any the websites other than our own September 2011 2TPR0428

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