Churchouse Financial Planning has enjoyed much success over the seven/eight years it has been providing financial planning advice. We believe that this is a testament to the mutual loyalty and confidence that we share with our clients. We thank you for your continued support.
As our brand has developed, we took the opportunity to trademark the name ‘Churchouse’ in financial services in 2007. Many of our clients are aware that we have received an approach to relinquish our trademark to a new bank and this was finalised recently.
I am sure you will understand that we do not wish to compete with the bank concerned and have negotiated to change our company name from the start of 2012. At that time, Churchouse Financial Planning Limited will change its name to Chapters Financial Limited. The new website address will be www.chaptersfinancial.com
I have taken this opportunity of providing an example of the new brand here:
Please rest assured of our continued support and service, with the ownership of www.churchouse.com and our email addresses remaining in our ownership and forwarding to our new name. Contact with us via email, post and telephone will remain unchanged.
This has been an interesting and exciting development in our evolution and we will aim to tell you more about our new business name and the brand, already registered as a trademark you will be pleased to know, in the next quarter of 2011.
We look forward to working with you further as we head towards our first decade in business.
Churchouse Financial Planning Limited is a Chartered Financial Planning company and Independent Financial Adviser with over a quarter of a century of experience in UK retail financial services. For information, much of this journey is detailed further in Keith Churchouse’s book, Sign here, here and here! Journey of a financial adviser, available through Amazon here.
The way you chose your financial planning service will vary and no individual advice has been provided in the text of this blog.
Keith G Churchouse BA Hons, FPFS
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Director, Churchouse Financial Planning Limited, Guildford, Surrey.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Churchouse Financial Planning Limited is not responsible for the content of external webpages and their content.
Thursday, 15 September 2011
Friday, 9 September 2011
Selecting your team for your financial planning ‘World Cup’
At the time of writing this blog there is much excitement in some quarters of the community about the beginning of The Rugby World Cup, which starts this morning. For those of you that are not well versed or interested in Rugby, the hosts and favourites, New Zealand are set to face Tonga in the opening match and I am sure that a few (probably mainly male) enthusiasts will sneak away from their work desks, computers or other pastimes to watch the first game and the opening ceremony. Because of the time differences between our two nations, many games will be viewed over breakfast and much anticipation will be quenched by the starting whistle of the competition.
Although only a limited sports fan, I am aware that, like most World Cups teams, irrespective of their sporting denomination, much preparation and hard work has been spent to make sure that the best has been extracted and selected from each element of the team, its management, facilities and players to ensure that only the best is fielded for the big tournament.
The competition itself will, in its process, select the best team of the tournament, presenting it with the coveted World Cup and runners up medals to the other finalist team. This ’selection’ process will be decided through the various rounds of the games and I am sure will show who has put the work, preparation and training in to be the best. This is the same in all walks of life and is the same in the profession of financial planning.
The UK consumer has many choices when selecting their financial planning provider. Starting with the basics, a financial adviser can be tied to one provider or independent. If an independent adviser (IFA) is preferred, possibly because of the potential that additional choice could bring, they can then select to work on a fee or commission basis, or a combination of these options. To some, experience and knowledge count for many selections made, along with personality of course. As another example, over the next 18 months, the level of qualification that an adviser has will become very important. This is because of various proposed Financial Services Authority (FSA) rule changes. The qualifications bar is being raised (significantly for some) and this may see a few providers either changing their status to reduce the service they offer or possibly leaving the industry all together. A little bit like losing a round in the World Cup and not making it through to, as an example, the quarter finals.
Much of a financial advisers business offering to you, the buying public, relies on hard work, preparation and selecting the best from their facilities to make sure that you get the best from your financial planning in the ‘tournament’ that is your finances. Make sure that you select well for your financial planning and I hope that your team wins.
Churchouse Financial Planning Limited is a Chartered Financial Planning company and Independent Financial Adviser with over a quarter of a century of experience in UK retail financial services. For information, much of this journey is detailed further in Keith Churchouse’s book, Sign here, here and here! Journey of a financial adviser, available through Amazon here.
The way you chose your financial planning service will vary and no individual advice has been provided in the text of this blog.
Keith G Churchouse BA Hons, FPFS
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Director, Churchouse Financial Planning Limited, Guildford, Surrey.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Churchouse Financial Planning Limited is not responsible for the content of external webpages and their content.
Although only a limited sports fan, I am aware that, like most World Cups teams, irrespective of their sporting denomination, much preparation and hard work has been spent to make sure that the best has been extracted and selected from each element of the team, its management, facilities and players to ensure that only the best is fielded for the big tournament.
The competition itself will, in its process, select the best team of the tournament, presenting it with the coveted World Cup and runners up medals to the other finalist team. This ’selection’ process will be decided through the various rounds of the games and I am sure will show who has put the work, preparation and training in to be the best. This is the same in all walks of life and is the same in the profession of financial planning.
The UK consumer has many choices when selecting their financial planning provider. Starting with the basics, a financial adviser can be tied to one provider or independent. If an independent adviser (IFA) is preferred, possibly because of the potential that additional choice could bring, they can then select to work on a fee or commission basis, or a combination of these options. To some, experience and knowledge count for many selections made, along with personality of course. As another example, over the next 18 months, the level of qualification that an adviser has will become very important. This is because of various proposed Financial Services Authority (FSA) rule changes. The qualifications bar is being raised (significantly for some) and this may see a few providers either changing their status to reduce the service they offer or possibly leaving the industry all together. A little bit like losing a round in the World Cup and not making it through to, as an example, the quarter finals.
Much of a financial advisers business offering to you, the buying public, relies on hard work, preparation and selecting the best from their facilities to make sure that you get the best from your financial planning in the ‘tournament’ that is your finances. Make sure that you select well for your financial planning and I hope that your team wins.
Churchouse Financial Planning Limited is a Chartered Financial Planning company and Independent Financial Adviser with over a quarter of a century of experience in UK retail financial services. For information, much of this journey is detailed further in Keith Churchouse’s book, Sign here, here and here! Journey of a financial adviser, available through Amazon here.
The way you chose your financial planning service will vary and no individual advice has been provided in the text of this blog.
Keith G Churchouse BA Hons, FPFS
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Director, Churchouse Financial Planning Limited, Guildford, Surrey.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Churchouse Financial Planning Limited is not responsible for the content of external webpages and their content.
Monday, 8 August 2011
Don’t panic! Don’t panic!…..Downgrading America’s Credit Rating
In the last week, equity markets have been as volatile and seen falls as significant as those last experienced in 2008, eventually bringing the downfall of Lehman Brothers in September of that year, as one of the many consequences.
The announcement by Standard & Poor’s on Friday, 05th August of the downgrade of the US’s credit rating from AAA to AA+, the first time this has fallen since 1917, is very significant. American politicians and pundits are arguing against this significant change, however, S&P note that part of the reason for the downgrade is last weeks squabbling between the political camps to agree a new US debt limit (now agreed at $16.8 trillion).
The effects of this downgrade change may not be immediate, however many are likely not to see this as a positive change, with some calling for international control of the Dollar as one of the most important central currencies. This also raises the question of what this means for clients in the UK and their investment/pension funds?
The first point to make is not to panic. Selling out of a Market after a fall will only crystallise a loss. If you don’t need to take this loss, then we would normally recommend holding tight. The falls experienced this week and the AA+ announcement, along with the other global economic events, such as the Eurozone debt crisis, has been a fast moving and, if more positive news comes through, markets can move just as quickly in a positive direction, although this is not guaranteed.
Many investments/ pensions are diversified and allocated over a range of different geographical and investment areas, giving some protection against volatility. However, because of the far reaching remit of the Dollar, this may mean that all markets see some turbulence.
We would recommend that you seek independent financial advice (IFA) for your investment and pension planning if you are concerned about the recent events and need to make changes to your fund holdings. Please note that this blog should not be seen or used as individual advice.
Churchouse Financial Planning Limited can help you with your financial planning.
Keith Churchouse FPFS
Director
Churchouse Financial Planning Limited, Guildford, Surrey.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority (FSA)
Friday, 5 August 2011
Does your family have the protection it needs…….without you?
Summer is time for family, holidays and fun….hopefully with a bit of summer weather thrown in! Many will spend time with their loved ones, caring for their required needs.
But when is the last time you looked at your family protection to really make sure they are protected…and not just on holiday.
Some clients find this a difficult subject to address because the need is only likely to arise in the event of death or Ill health, neither of which are pleasant subjects, especially when they refer to you. However, I understand that there are two things certain in life, namely death and taxes and sadly you can only normally insure against the former. What should you, your spouse/ partner and your family consider?
1. Start with any employer benefits
When did you last read your employment contract and the benefits your employer offers?
Many employers offer varying benefits, however, benefits might include, as examples:
» Death in Service Benefits, say 2/3/4 X salary in the event of your death whilst employed.
» Medical Insurance, to cover hospital/surgery costs if needed. If you have this cover, are your family included? If not, you may be able to add this protection (at an additional cost). The type of benefit is normally treated as a benefit in kind for income tax purposes.
» How long will you be paid if you were unable to work due to ill health? Some employers offer protection of salary for a period of time, but it is worthwhile finding out how much this is. Some will only offer Statutory Sick Pay (SSP), which is currently £81.60 per week (2011/2012).
Taking all of the above into account, you can then start to plan to protect the gaps in your financial protection planning……if there are any.
This cover may be lost when you leave an employment, and you may want to consider this when looking at an alternative employment/ self-employment option.
2. Existing protection policy cover
You may also have some existing protection cover in place and this may compliment well the benefit provided from your employment, so make sure you keep the details of these plans safe and keep any policy documents safe.
Some older type plans have policy conditions that are now considered generous. If you are thinking of replacing these covers, then check the benefits covered carefully to make sure you are replicating the cover you require.
If you have a financial adviser, make sure they have a list of what covers you have to keep records correct.
3. Examples of types of protection cover
Income Protection (Permanent Health Insurance/PHI)
» Replaces part or your income if you are unable to work for a long period of time due to illness or disability, and will continue to pay out until you can return to some kind of paid work or reach retirement, whichever is sooner.
» Usually, you pay a monthly premium throughout the term of the policy and costs depends mainly on: your age, your sex, your health, your job, hobbies and lifestyle as well as waiting period, which you can choose i.e: 4 weeks up to 104 weeks.
Life Insurance
» Provides a lump sum or fixed regular income, either if you die (if whole of life policy) or if you die within a specified term (term insurance).
» Term insurance – simplest and cheapest. Known as term insurance because you choose how long you are covered for, say 10, 15 or 20 years. Different types of policies are available. Premiums are usually fixed for the whole term and some can be renewed after a certain period, say 5 years. These policies have no value at anytime and if you cease to pay premiums cover also ceases.
» Whole of life insurance – pays out an agreed sum when you die as long as you are still paying the premiums. This is usually more expensive than term insurance. With these policies part of the premium is invested now in order to fund higher life assurance premiums later to avoid passing the additional cost on to you.
We would normally recommend that any individual life cover established is placed under trust to ensure that the proceeds of any policy fall outside the deceased estate for inheritance tax purposes (IHT).
Critical Illness
» Critical illness insurance is a long-term insurance policy designed to pay a lump sum or income on the diagnosis of certain life-threatening or debilitating (but not fatal) conditions such as a heart attack, stroke, certain types/stages of cancer, multiple sclerosis and loss of limbs.
Private Medical Insurance
» All of us are entitled to free healthcare from the NHS but you may consider buying health insurance so you have a choice in the level of care you get. The cover you get varies and certain treatment is not covered i.e. if you have had problems in the past or the treatment of a chronic medical condition. It is important to research the premiums because this is a competitive market and many policies have a standard excess charge where you agree to pay the first part of any claim i.e. the first £50 or £100.
Other points to think about to ensure you and your family are fully protected
» Check the nominations on your pensions – if you have had a change of circumstance since originally setting up your pension/s i.e. marriage or divorce as examples, it would be a good idea to check who is nominated to receive your pension benefits in the event of your death, if you have nominated anyone at all.
Clearly, with the many options (as examples) I have detailed above, you can see that some careful financial planning is worthwhile in maximising the type of protection you want to consider for you and your family, whilst minimising the impact of this cover on your monthly budget. Your budget for cover will be important and you might want to consider this in advance.
This is for information only and should not be seen or used as individual advice. Seek independent financial advice (IFA) for your own circumstances. Churchouse Financial Planning Limited can provide advice and implement suitable cover to help you with your own individual protection planning.
We look forward to working with you soon.
Keith Churchouse FPFS
Director of Churchouse Financial Planning Limited Chartered Financial Planner
ISO22222 Certified Financial Planner
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
But when is the last time you looked at your family protection to really make sure they are protected…and not just on holiday.
Some clients find this a difficult subject to address because the need is only likely to arise in the event of death or Ill health, neither of which are pleasant subjects, especially when they refer to you. However, I understand that there are two things certain in life, namely death and taxes and sadly you can only normally insure against the former. What should you, your spouse/ partner and your family consider?
1. Start with any employer benefits
When did you last read your employment contract and the benefits your employer offers?
Many employers offer varying benefits, however, benefits might include, as examples:
» Death in Service Benefits, say 2/3/4 X salary in the event of your death whilst employed.
» Medical Insurance, to cover hospital/surgery costs if needed. If you have this cover, are your family included? If not, you may be able to add this protection (at an additional cost). The type of benefit is normally treated as a benefit in kind for income tax purposes.
» How long will you be paid if you were unable to work due to ill health? Some employers offer protection of salary for a period of time, but it is worthwhile finding out how much this is. Some will only offer Statutory Sick Pay (SSP), which is currently £81.60 per week (2011/2012).
Taking all of the above into account, you can then start to plan to protect the gaps in your financial protection planning……if there are any.
This cover may be lost when you leave an employment, and you may want to consider this when looking at an alternative employment/ self-employment option.
2. Existing protection policy cover
You may also have some existing protection cover in place and this may compliment well the benefit provided from your employment, so make sure you keep the details of these plans safe and keep any policy documents safe.
Some older type plans have policy conditions that are now considered generous. If you are thinking of replacing these covers, then check the benefits covered carefully to make sure you are replicating the cover you require.
If you have a financial adviser, make sure they have a list of what covers you have to keep records correct.
3. Examples of types of protection cover
Income Protection (Permanent Health Insurance/PHI)
» Replaces part or your income if you are unable to work for a long period of time due to illness or disability, and will continue to pay out until you can return to some kind of paid work or reach retirement, whichever is sooner.
» Usually, you pay a monthly premium throughout the term of the policy and costs depends mainly on: your age, your sex, your health, your job, hobbies and lifestyle as well as waiting period, which you can choose i.e: 4 weeks up to 104 weeks.
Life Insurance
» Provides a lump sum or fixed regular income, either if you die (if whole of life policy) or if you die within a specified term (term insurance).
» Term insurance – simplest and cheapest. Known as term insurance because you choose how long you are covered for, say 10, 15 or 20 years. Different types of policies are available. Premiums are usually fixed for the whole term and some can be renewed after a certain period, say 5 years. These policies have no value at anytime and if you cease to pay premiums cover also ceases.
» Whole of life insurance – pays out an agreed sum when you die as long as you are still paying the premiums. This is usually more expensive than term insurance. With these policies part of the premium is invested now in order to fund higher life assurance premiums later to avoid passing the additional cost on to you.
We would normally recommend that any individual life cover established is placed under trust to ensure that the proceeds of any policy fall outside the deceased estate for inheritance tax purposes (IHT).
Critical Illness
» Critical illness insurance is a long-term insurance policy designed to pay a lump sum or income on the diagnosis of certain life-threatening or debilitating (but not fatal) conditions such as a heart attack, stroke, certain types/stages of cancer, multiple sclerosis and loss of limbs.
Private Medical Insurance
» All of us are entitled to free healthcare from the NHS but you may consider buying health insurance so you have a choice in the level of care you get. The cover you get varies and certain treatment is not covered i.e. if you have had problems in the past or the treatment of a chronic medical condition. It is important to research the premiums because this is a competitive market and many policies have a standard excess charge where you agree to pay the first part of any claim i.e. the first £50 or £100.
Other points to think about to ensure you and your family are fully protected
» Check the nominations on your pensions – if you have had a change of circumstance since originally setting up your pension/s i.e. marriage or divorce as examples, it would be a good idea to check who is nominated to receive your pension benefits in the event of your death, if you have nominated anyone at all.
Clearly, with the many options (as examples) I have detailed above, you can see that some careful financial planning is worthwhile in maximising the type of protection you want to consider for you and your family, whilst minimising the impact of this cover on your monthly budget. Your budget for cover will be important and you might want to consider this in advance.
This is for information only and should not be seen or used as individual advice. Seek independent financial advice (IFA) for your own circumstances. Churchouse Financial Planning Limited can provide advice and implement suitable cover to help you with your own individual protection planning.
We look forward to working with you soon.
Keith Churchouse FPFS
Director of Churchouse Financial Planning Limited Chartered Financial Planner
ISO22222 Certified Financial Planner
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Tuesday, 26 July 2011
There may be trouble ahead….still!/ Europe
With the first decade of Greece’s membership of the European Union (EU) upon us, the member states have to be commended for their hard work and recognition of the problems that this country finds itself in. It is good to see that the powerhouses of the EU, such as Germany and France, amongst others, are able to come together and find a solution to the debt problems that are now so apparent. With financial measures now agreed, it will be interesting to see if, in implementing these changes, they will be enough to control any contagion of default to other member states that find themselves with similar, if not larger, problems such as Portugal, Ireland / Italy and Spain ( together with Greece, unfortunately referred to as PIGS).
Many questions and answers lie ahead as to whether the financial measures agreed to help the Greek economy recover in an acceptable fashion, both to other EU states and the Greek people, will work. The major concern has been that as a state, Greece produces only approximately 2% (1.9%) of the EU’s overall GDP (Gross Domestic Product), which is obviously low. Their GDP deficit was over 10% in 2010 and public debt levels as a percentage of GDP at over 140% (142% in 2010). This raises the question of what happens if another larger EU state needs a similar financial solution and rescue?
Of the other countries already mentioned, using Italy in this example, this member state produces over 12% (approximately 12.7% of the EU’s GDP in 2010) and has a GDP deficit as a percentage of national GDP (4.6% in 2010) and levels of unemployment at 8.4% (2010). Their debt level is ‘only’ 119% (in 2010) and, as a further example, this compares to 80% debt level in the UK.
Default on national debt may have the effect of making debt costs rise in the Eurozone, making it likely that it would be more expensive for all countries to borrow funds to help their economies grow. This, in turn, may slow progress for member states out of recession, which most want to avoid. Time will tell if the measures agreed last week will be sufficient to meet the demands of the economies of the EU and I am sure many complications will appear in the coming months. There are many other global states and trading areas that rely on a strong Eurozone, and this is why it is important that these measures work into the future.
This blog is for information only and should not be seen or used as individual advice. Seek independent financial advice (IFA) for your own circumstances.
Churchouse Financial Planning Limited can help you with your own investment planning and asset allocation.
Keith Churchouse FPFS
Director of Churchouse Financial Planning Limited Chartered Financial Planner
ISO22222 Certified Financial Planner
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Many questions and answers lie ahead as to whether the financial measures agreed to help the Greek economy recover in an acceptable fashion, both to other EU states and the Greek people, will work. The major concern has been that as a state, Greece produces only approximately 2% (1.9%) of the EU’s overall GDP (Gross Domestic Product), which is obviously low. Their GDP deficit was over 10% in 2010 and public debt levels as a percentage of GDP at over 140% (142% in 2010). This raises the question of what happens if another larger EU state needs a similar financial solution and rescue?
Of the other countries already mentioned, using Italy in this example, this member state produces over 12% (approximately 12.7% of the EU’s GDP in 2010) and has a GDP deficit as a percentage of national GDP (4.6% in 2010) and levels of unemployment at 8.4% (2010). Their debt level is ‘only’ 119% (in 2010) and, as a further example, this compares to 80% debt level in the UK.
Default on national debt may have the effect of making debt costs rise in the Eurozone, making it likely that it would be more expensive for all countries to borrow funds to help their economies grow. This, in turn, may slow progress for member states out of recession, which most want to avoid. Time will tell if the measures agreed last week will be sufficient to meet the demands of the economies of the EU and I am sure many complications will appear in the coming months. There are many other global states and trading areas that rely on a strong Eurozone, and this is why it is important that these measures work into the future.
This blog is for information only and should not be seen or used as individual advice. Seek independent financial advice (IFA) for your own circumstances.
Churchouse Financial Planning Limited can help you with your own investment planning and asset allocation.
Keith Churchouse FPFS
Director of Churchouse Financial Planning Limited Chartered Financial Planner
ISO22222 Certified Financial Planner
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Tuesday, 12 July 2011
Extracts from our Summer Newsletter 2011
There are usually some tangible times in a calendar year when financial planning is noted in client’s diaries about what they need to undertake to maintain their overall planning strategy. The first more obvious date is the end of the tax year and to use up annual tax allowances, such as pension contributions or annual contributions to cash and/or stocks and shares ISAs, to name just two. Others find that the end of the calendar year, towards Christmas, is a time to consider family and issues such as inheritance tax planning, maybe using the annual gift allowances in the process.
Each client is different and has different objectives, therefore, this blog article should not be seen or used as individual advice.
Summer is a time when many relax a little and enjoy the sun and the warmth (or sometimes rain!) of the season. Many find this season a good time to review their financial planning, and I have provided a few notes below to give a prompt or two, if needed.
Proposed Financial Ombudsman Service award increase to £150,000
The Financial Services Authority (FSA) has been consulting on a proposal to increase the Ombudsman service award limit from £100,000 to £150,000, with a planned start date of 1 January 2012. The FSA made this proposal in order to prevent a decline in the consumer protection afforded by the award limit in real terms. This is to take account of the effects of inflation, which have certainly been more prevalent in recent times.
Following the consultation, the FSA plans to proceed with this increase, along with streamlining of their processes. They plan that these changes will maintain and contribute to increased confidence in financial services.
Implementation of Retail Distribution Review (RDR) End 2011
Some of you may know that the Financial Services Authority (FSA) has been working hard on the way that financial services is distributed in the UK. There has been some press on this topic and this is likely to grow over the coming months. The FSA’s work has taken much time and research, including consultations, and the final changes have been proposed and are likely to form the new regime starting at the end of 2012. As Chartered Financial Planners, we are well placed to meet these new requirements and to be able to continue to provide you with independent financial advice into 2012 and beyond.
One way we have demonstrated our commitment to providing high quality financial advice is to continue to be assessed for the British Standards ISO22222 Personal Financial Planning. My last assessment was in mid June 2011, my fourth year, and was passed successfully. At the end of June, I also studied and passed the Chartered Insurance Institutes Long Term Care exam, called CF8.
We will endeavour to keep you posted on the key changes that may affect you into the future once they are finalised.
Summary
I hope you have a great summer and I, and the team at Churchouse Financial Planning Limited, look forward to helping you with you financial planning over the rest of 2011 and into the year of the Olympics, 2012.
If you would like to review your asset allocation, investment planning, retirement or pension planning then please let us know and we can arrange a meeting to consider your current needs and aspirations.
If you would like to be added to our newsletter mailing list then please contact us for more information.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Keith G Churchouse FPFS
Director, Churchouse Financial Planning Limited, Guildford, Surrey
ISO 22222 Certified Financial Planner
Each client is different and has different objectives, therefore, this blog article should not be seen or used as individual advice.
Summer is a time when many relax a little and enjoy the sun and the warmth (or sometimes rain!) of the season. Many find this season a good time to review their financial planning, and I have provided a few notes below to give a prompt or two, if needed.
Proposed Financial Ombudsman Service award increase to £150,000
The Financial Services Authority (FSA) has been consulting on a proposal to increase the Ombudsman service award limit from £100,000 to £150,000, with a planned start date of 1 January 2012. The FSA made this proposal in order to prevent a decline in the consumer protection afforded by the award limit in real terms. This is to take account of the effects of inflation, which have certainly been more prevalent in recent times.
Following the consultation, the FSA plans to proceed with this increase, along with streamlining of their processes. They plan that these changes will maintain and contribute to increased confidence in financial services.
Implementation of Retail Distribution Review (RDR) End 2011
Some of you may know that the Financial Services Authority (FSA) has been working hard on the way that financial services is distributed in the UK. There has been some press on this topic and this is likely to grow over the coming months. The FSA’s work has taken much time and research, including consultations, and the final changes have been proposed and are likely to form the new regime starting at the end of 2012. As Chartered Financial Planners, we are well placed to meet these new requirements and to be able to continue to provide you with independent financial advice into 2012 and beyond.
One way we have demonstrated our commitment to providing high quality financial advice is to continue to be assessed for the British Standards ISO22222 Personal Financial Planning. My last assessment was in mid June 2011, my fourth year, and was passed successfully. At the end of June, I also studied and passed the Chartered Insurance Institutes Long Term Care exam, called CF8.
We will endeavour to keep you posted on the key changes that may affect you into the future once they are finalised.
Summary
I hope you have a great summer and I, and the team at Churchouse Financial Planning Limited, look forward to helping you with you financial planning over the rest of 2011 and into the year of the Olympics, 2012.
If you would like to review your asset allocation, investment planning, retirement or pension planning then please let us know and we can arrange a meeting to consider your current needs and aspirations.
If you would like to be added to our newsletter mailing list then please contact us for more information.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Keith G Churchouse FPFS
Director, Churchouse Financial Planning Limited, Guildford, Surrey
ISO 22222 Certified Financial Planner
Monday, 27 June 2011
Deliberate Asset Deprivation?
It sounds like a game show and I am sure the term has got your attention, although for some it is not amusing.
I have been studying the Chartered Insurance Institutes (CII) text for long term care, sometimes referred to as CF8 and passed this test recently. This considers the principals of why this topic should be considered, the conflicts that may arise from other financial planning issues, such as inheritance tax planning (IHT), and some of the solutions that may be considered on their own or in combination with a few arrangements. All very interesting and thought provoking, creating a lot of opportunity to prepare and care for those needing this type of advice and help.
As you can guess, the costs of long term care can be significant and the provision provided by the state once an individual’s assets have been eroded can be low. It may also reduce the choices available to you. Provision from the state will only start after an individual’s assets fall below a current level if £23,250 (2011/2012). And yes, your house value does count towards this (although it may be disregarded in the first 12 weeks of care).
It is this threshold that may encourage some to consider gifting away assets to a level where the cost of care will be met by the state, rather than at the cost of the family. As you can guess, any assessment for care costs will take this into account.
If a gift from the individual’s estate is made within 6 months of the need for care, the gift is likely to be disregarded and added back into the assets of the individual for the assessment. Gifts made prior to this 6 month period may also be included if there was no obvious purpose to the gift being made. Inheritance tax planning may be a fair reason, but the gift away may be challenged if it is believed that the gift was made as a deliberate asset deprivation strategy.
There are a few example cases to reference these challenges and the way gifts (in the specific situations) were treated in each case and these are listed here:
R v. N and E Devon ex parte Coughlan (1999)
Beeson v. Dorset County Council (2001)
Grogan v. Bexley NHS Care Trust (2006)
As you can see from the content of this blog, each case is different and each client and there requirements are different. Therefore, this article should not be seen as individual advice.
As always, I would recommend that you seek independent financial advice (IFA) for your circumstances and requirements.
Keith Churchouse FPFS
ISO 22222 Certified Financial Planner
Chartered Financial Planner
Churchouse Financial Planning Limited, Guildford, Surrey
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
I have been studying the Chartered Insurance Institutes (CII) text for long term care, sometimes referred to as CF8 and passed this test recently. This considers the principals of why this topic should be considered, the conflicts that may arise from other financial planning issues, such as inheritance tax planning (IHT), and some of the solutions that may be considered on their own or in combination with a few arrangements. All very interesting and thought provoking, creating a lot of opportunity to prepare and care for those needing this type of advice and help.
As you can guess, the costs of long term care can be significant and the provision provided by the state once an individual’s assets have been eroded can be low. It may also reduce the choices available to you. Provision from the state will only start after an individual’s assets fall below a current level if £23,250 (2011/2012). And yes, your house value does count towards this (although it may be disregarded in the first 12 weeks of care).
It is this threshold that may encourage some to consider gifting away assets to a level where the cost of care will be met by the state, rather than at the cost of the family. As you can guess, any assessment for care costs will take this into account.
If a gift from the individual’s estate is made within 6 months of the need for care, the gift is likely to be disregarded and added back into the assets of the individual for the assessment. Gifts made prior to this 6 month period may also be included if there was no obvious purpose to the gift being made. Inheritance tax planning may be a fair reason, but the gift away may be challenged if it is believed that the gift was made as a deliberate asset deprivation strategy.
There are a few example cases to reference these challenges and the way gifts (in the specific situations) were treated in each case and these are listed here:
R v. N and E Devon ex parte Coughlan (1999)
Beeson v. Dorset County Council (2001)
Grogan v. Bexley NHS Care Trust (2006)
As you can see from the content of this blog, each case is different and each client and there requirements are different. Therefore, this article should not be seen as individual advice.
As always, I would recommend that you seek independent financial advice (IFA) for your circumstances and requirements.
Keith Churchouse FPFS
ISO 22222 Certified Financial Planner
Chartered Financial Planner
Churchouse Financial Planning Limited, Guildford, Surrey
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
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