Post-Platform Conference ruminations

Saturday, 6th June 2009 15:20 - by Resident IFA

In my last Blog, I mentioned Wraps and Platforms. I am back from a 2-day conference in Kensington discussing those very topics. The conference was ‘IV’, suggesting it is a yearly event and there had been three stagings before. I thought it was one of the more worthwhile events I had attended, but glad I had left it (or never heard of it!) until now. My first observation is on the attendees, most especially the IFAs (Independent Financial Advisers) present. The great and the good were there in a presenting capacity, all walks of financial/investment life to be found – the FSA (Financial Services Authority), representatives of a major Platform or two, investment fund manager staff, the ‘high-ups’ of the professional bodies, Life companies (i.e. Legal & General) and a fair few journalists. What always strikes me about the IFAs (of which I am one) at these seminars/conferences/events is the commitment and ethical nature they portray. Hats off to them. I think the general public thinks of IFAs as one of the better enclaves in the financial services industry, but don’t appreciate quite how diligent and keen to advise in the Clients best interest the majority are. Now, I could be cynical and say they ‘talk a good game’, but the recurring evidence of the professional approach and their striving to provide quality financial advice tell me otherwise. I guess that, however, the more earnest Adviser would attend these events in the first place as they are trying to learn more and improve their Client service, the charlatans staying away and happy to sell on (although some will argue otherwise). Anyhow, back to the real topic of Wraps and Platforms - Wraps being a way of viewing all your financial products in one place online, Platforms intrinsically linked to this, but more from an active standpoint i.e. facilitating such as fund switches within your Pensions and/or Investments. One of the key topics was the inevitable and unavoidable rise of the ‘New Model Adviser’ as a result of the FSA’s ongoing ‘Retail Distribution Review’ (RDR). This stipulates the level of qualifications a professional Financial Adviser must have by 31st December 2012 to remain in a position to provide advice, along with guidance as to what will entitle an Adviser to remain advertising their ‘Independent’ status…or not. New Model Adviser refers to the inexorable move towards fee-based advice, this being portrayed as a far more transparent way of a Client obtaining financial advice, especially on varied commission financial products such as Pensions and Investments. Insurance and Mortgage advice is less open to commission bias and will likely remain in the ‘transactional’ advice (commission-remunerated) arena. My hands are almost falling-off and my head is buzzing, so time to have a break. To be continued. Until next time…