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Paul Stanfield

Paul Stanfield. CEO of FEIFA since launch in 2009 – Federation of European Independent Financial Advisers Secretary General of FECIF since April 2014 – Federation of European Financial Advisers & Intermediaries Over 23 years experience in the intermediary sector.

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Paul Stanfield

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  1. Paul Stanfield CEO of FEIFA since launch in 2009 – Federation of European Independent Financial Advisers Secretary General of FECIF since April 2014 – Federation of European Financial Advisers & Intermediaries Over 23 years experience in the intermediary sector

  2. Regulation and its impact on Financial Advisory Businesses

  3. Scope • What are the key EU regulatory changes coming our way? • How do these compare with recent developments in the UK • What have been the main results in the UK post-RDR • How does it work? • The way forward - how might your business models change?

  4. EU Regulation – the legislation • MiFID II • IMD II • PRIIPS

  5. EU Regulation – the main effects • Transparency – remuneration, conflicts of interest • Fees? • TCF – Treating Clients Fairly • Greater professionalism – e.g. qualifications, CPD

  6. EU Regulation compared to the UK • Transparency – remuneration, conflicts of interest • Fees • TCF – the client at the centre of the process • Greater professionalism – e.g. qualifications, CPD

  7. Outcomes in the UK • Dramatically altered business models • Improved consumer perception • Client segmentation • Increased true value in advisory businesses

  8. New business models • Far greater recurrent income • Focus on profitability rather than turnover • Improved ongoing service levels

  9. New business models – pricing pressures • Discretionary Fund Managers: 1.25% 0.75% • Active Fund Managers: 0.75% 0.50% • Platform/Administration: 0.40% 0.20% (0.15%?) • Financial Planning: 0.50% 1.00% • TERs: 2.90% 2.45%

  10. Consumer perception • Removal of commission bias • Increased trust at outset • Professionalism enhanced

  11. Client segmentation • Profit-based models focus away from volume towards “quality” • Creating an advice gap? • Did that gap exist already?

  12. Value of your business • Recurrent income = greater value • Greater ongoing services = happier and “stickier” clients and AUA • Changes = careers rather than jobs?

  13. How does adviser charging actually work? • Various models • Fees only apply to savings, investment and pension advice (UK) • Commission still possible on mortgage and protection business

  14. The main fee-based models • Percentage of the investment • Set fee for each type/area of advice • Hourly rate • A combination

  15. An example – Menu of Services

  16. Menu of (Initial) Services - close up

  17. An example – Menu of Charges

  18. Menu of (Initial) Charges - close up

  19. Menu of (Ongoing) Charges close up

  20. Mix of charging types

  21. The way forward • Retain independence? • Early adopters generally more successful • Develop/create your service proposition • Segment your client base • Calculate profitable and appropriate fee levels

  22. Effect on the advisory sector • Sector size • Banks versus the rest • Advice gap? • Online propositions

  23. The Future • Independence versus non-independence • Bank advice? • Smaller sector? • More professional/qualified • Better image – increase in trust?

  24. Questions?

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