7 New Year resolutions for advice firms
For financial professionals only
Want to get 2020 off to a positive start? Here are 7 hot topics that could set you and your clients off on the right foot.
1. SMCR – Tune up your website
The new Senior Manager regime came into effect in December and the FCA stopped approving individual CF30s. This will make it harder for the public to check if someone really is a legitimate financial adviser.
Time to make sure your firm’s website clearly demonstrates your professional credentials and proven trustworthiness.
2. Make 2020 that little bit greener
Everyone is wanting to do their bit to save the planet so investing in ESG solutions is an obvious step. Parmenion have a unique range of forty Ethical portfolios which can be recommend to your clients. These extend from Risk Grade 1 to 10 but you also have a choice one of four increasingly restrictive levels of engagement, from Responsible Leaders to Traditional Ethical.
3. Tricky markets? Take a look at Conviction
Parmenion’s Conviction portfolios offer our best thinking about which style of fund – active or passive – in each asset class gives the best value for money.
Every month, we look at the risks each sector faces and decide how to capture upside – and restrict downside – most cost effectively.
Right now, the broad exposure of passive bond funds to credit risks from the very good to poor or bad means we tend to favour the more selective active bond managers.
4. Look out for Investment pathways – coming your way in July 2020
Investment pathways are the FCA’s latest tactic to get the public to do sensible things with their pensions – rather than spend it fast, keep it in cash, pay unnecessary tax or do nothing at all.
Pathways will ensure that non advised clients have at least four sensible options which may at first sight seem like a cost effective answer. Our Income Manager Tool (IMT) can help your firm demonstrate the value of personalised advice versus a generic approach.
5. Risk Grades – proceed with caution!
Rory Percival’s landmark ‘Assessing Suitability’ papers are now nearly ten years old – but be wary of embedded systematic risk profiling.
Distinguishing how worried someone is about risk and loss and encouraging them to make an informed choice of the appropriate level of risk to achieve their goals are equally important especially in drawdown.
6. Re-imagine annual reviews
Inspiring action in annual reviews comes from clear reporting, a greater emphasis on client goals and objectives, and visualising changes in longevity and investment risk.
The best Plan B in retirement is a dynamic, flexible Plan A, adapted as circumstances change, with proper evaluation of the odds of success.
7. Don’t rely on averages
ONS life expectancy data can give significantly different results when compared with personalised data based on gender, health and postcode such as Club Vita. Why plan for Mr Average’s situation when a clearer, personalised view is available?
If you’d like to know more about any of these resolutions, get in touch with our Client Services team on 0117 204 7640. Here’s to a successful New Year.
“The above article is intended to be a topical commentary and should not be construed as financial advice from either the author or Parmenion Capital Partners LLP. If a client wishes to obtain financial advice as to whether an investment is suitable for their needs, they should consult an authorised Financial Adviser. Past performance is not an indicator of future returns.”
Any news and/or views expressed within this document are intended as general information only and should not be viewed as a form of personal recommendation. All investment carries risk and it is important you understand this. If you are in any doubt about whether an investment is suitable for you, please contact your financial adviser.