Nearly new regulatory regime 2013

We are now entering the eighth month of the inception of the Retail Distribution Review ( or RDR for short) process implemented at the very start of 2013.

As noted on our websites front page, Chapters Financial Limited moved to a transparent  fee based client agreed remuneration policy in 2007 (May). Because of this inspired change, we have found the regime transition less complicated than many of our competitors and are proud to have retained our independent status. This may be a reflection of the significant fall in the numbers of advisers in the UK (with numbers still falling) over the last year. (Source: www.imas.uk.com website). Personally, I am saddened by this reduction in numbers, because the access to financial advice that many enjoyed in the past has fallen away, with the anticipation that the Internet will fill the void left by the loss of these services. (See www.advicemadesimple.com as one example).

As a reminder, the headlines of the FSA's planned customer/ client outcomes for the RDR were:

• Advisers qualified to a high standard (Qualification 4 or above).
• Transparent fee based charging structure for both initial and on-going services ( a ban on commission for most services). 
• Choice to use an Independent (IFA) or Restricted financial advice service
• As an additional note, in April 2013, the Financial Services Authority was replaced by a new financial regulator, the Financial Conduct Authority (FCA).

What have been some of the initial effects of these changes we have witnessed?

Many retail financial advisory providers have struggled to comply with these new requirements and this has added to the numbers exiting the profession. It has also been interesting and concerning to note how many existing policy providers (namely some of the big insurance based companies) have been unable to meet the changes required for transparency, confirming that in some cases existing plans cannot accept additional or changed contributions.

Chapters Financial has seen an increase in focussed enquiries in 2013, ranging from pre-retirement, retirement and inheritance tax planning to many SME owner/ director/ managers now getting closer to their company’s  Auto-Enrolment date. It will be interesting to see how the legislation introduced for Workplace Pensions will affect retirement savings in generations to come.

More evidence of the benefits of this regime change will come in future times. It will be interesting to see in time if all the changes have been a success for those seeking financial planning advice.

No individual advice has been provided in this blog and you should seek financial advice (IFA) for your own individual or company’s needs and requirements. Speak to the team at Chapters Financial Limited on 01483 578800

Keith Churchouse FPFS
Director
Chartered Financial Planner

ISO22222 Certified Financial Planner

Chapters Financial Limited

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.

Business Risks Protection

The team at Chapters Financial Limited is proud to offer service and advice to the directors and staff of Small to Medium Enterprises (SME's) across Surrey, Kent and the south east region.

In specialising in business planning, including pension, protection and investment planning, Chapters Financial Limited receives requests from companies and enquirers for information on suitable cover for professional risks. This subject is a specialist area requiring bespoke solutions to the company’s needs and individual objectives.

To offer help in this area, we feel greater value can be secured by referring these enquirers to the specialist team at MacQueen International, based in Guildford, who serve business owners and managers in providing protection for business risks. They offer independent advice, like us, and have the following pedigree:

• Member of the British Insurance Brokers Association;
• Authorised and Regulated by the Financial Conduct Authority
• Based in Guildford, Surrey, UK
  
• Offering a wide range of commercial insurances including a Specialists Division in the provision and management of Professional Indemnity insurance
  Established in 1986
• Brokers to the Chartered Institute of Logistics and Transport in the UK
  
• Martin Macqueen, Director at MacQueen International Insurance Brokers Limited notes:

Through our two operating Divisions, Corporate and Professional, we offer a personal service from the initial meeting to assess the risks associated with your business through to extensive marketing in the London companies and Lloyd’s market to secure best terms tailored to your specific needs, to hands on claims management, including negotiation with underwriter’s appointed loss adjuster, solicitor or other claims handler to ensure that the policy you purchased works for you, to protect your assets and your company’s reputation.

Like Chapters Financial Limited, we place a high value on the quality of service provided to our clients and we are recognised within the professional market as a competitive and resourceful broker in the management of our clients’ insurance programmes.

We are delighted to be associated with Chapters Financial Limited.

When discussing the products available, Martin has provided a few examples for information below:

Typically Directors and Officers policies are divided into two parts:

• Directors & Officers Liability Coverage: The insurance company will pay the loss of individual Directors and Officers when the company cannot indemnify the individuals
• Corporate Reimbursement Coverage: The insurance company will pay the loss of the company when it has provided indemnity to the individual Directors and / or Managers

However coverage can be extended to include:

• Full Employment Practices Liability – covers the company (as opposed to the individual Directors/Managers) legal liability arising from a wrongful employment act including unfair dismissal, race, sex, age and disability discrimination.
• Corporate Liability (entity coverage) includes coverage for the company (as opposed to the Individual Directors / Managers) where an action is brought in the name of the company as well as its Directors and Officers.

The cost of coverage is not expensive for the essential protection it provides the individual Director and Officer of the Company and should form part of your essential insurance portfolio.

For information, MacQueen International Insurance Brokers Limited is the appointed broker to members of the Chartered Institute of Logistics and Transport in the UK for the provision of professional indemnity and directors and officers insurance.

No individual advice has been provided during the course of this blog. If you require bespoke advice on your pension, protection and investment planning, then please speak to the team at Chapters Financial Limited on 01483 578800.

For advice on professional risks protection, please contact Martin MacQueen on 01483 306771 or martin@macqueeninternational.co.uk

Keith Churchouse FPFS
Director,
ISO22222 Personal Financial Planner

Chapters Financial Limited Chapters Financial Limited is not responsible for the advice or service provided by MacQueen International Insurance Brokers Limited.

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.

MacQueen International Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority, number 310867.

Chapters Financial Newsletter

At Chapters Financial Limited, we like to keep our clients and enquirers informed of topical issues and topics that bear relevance to their financial planning. The May 2013 Newsletter has just been produced and will shortly be made available to our clients and contacts in the next few days.

In this blog, I have provided a flavour of what is included, amongst other topical issues, for your consideration.

If you would like to consider the potential for this planning further then please contact the team at Chapters Financial.

Inheritance Tax & Charitable Giving

We are pleased to have received many enquires seeking advice on ways that inheritance tax can be saved. As a highly topical subject, many clients and enquirers also consider charitable giving as a way of saving inheritance tax, both through their lifetime and through their wills. We have introduced a new Webpage entitled Charitable Giving, which details the opportunities further. If you would like to know more or to consider ways of supporting local organisations in an efficient manner then please contact Keith Churchouse.

Auto-Enrolment/ Workplace Pensions reminder

The implementation of Auto-Enrolment with the use of Workplace Pensions is well under way for many employers, starting with the largest employers and moving in company size to the smallest by 2016/2017. We have received many enquiries from Business owners on this subject and are well placed to provide advice and service in implementing the relevant requirements. If you would like to know more or to know when your business’s Staging Date is then please let us know.

The New Financial Conduct Authority

As noted in previous Newsletters, the Financial Services Authority has now ended and has been replaced by the new Financial Conduct Authority at the beginning of April 2013. We are pleased to have met with the new regulator in early April following their transition and we welcome this change and look forward to their work into the future.

New Chapters Financial APP

At Chapters Financial Limited, we try to keep ahead in terms of our communications and the way these can be received. Many of you will have visited our website to access Blogs, Podcasts, Press Comment and other information. This information can also now be accessed by our new APP, suitable for Computer tablets and Smartphones. Please see our website to download your additional access to news, updates and information from Chapters Financial Limited.

No individual advice has been provided during the course of this blog. If you would like to receive individual advice on the topics above, or receive our regular newsletter, then please contact the team at Chapters Financial Limited on 01483 578800.

Keith G. Churchouse
FPFS ISO22222 Certified Financial Planner Director and Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
The Financial Conduct Authority does not regulate Tax advice.

Why we add value

The new world of UK retail Financial Services commenced on 31^st December 2012. If you haven’t heard of these new initiatives and changes, they are called the Retail Distribution Review (or RDR for short) introduced by the professions regulator, the Financial Services Authority (FSA). We have posted other informative blogs on this website relating to RDR changes that will affect clients and advisers alike.

Change always brings challenges and the RDR is no exception.

From a client’s perspective, what should they now be looking for when seeking financial advice and help?

From Chapters Financial Limited’s point of view, how we help you add value to your personal financial planning?

Transparency

Chapters Financial has continued to operate a transparent Client Agreed Remuneration (CAR) model for the past 6 years. This is the model which the FSA has closely adopted for its new advice regime. We are proud to continue to offer independent advice based on enquirers needs and requirements.

Professional Service

The team provides an open, friendly and professional service based on integrity, values and commitment to the financial planning process. The initial meeting is usually provided at our cost. If during this meeting we do not believe we can add real value, then we tell the clients or enquirer accordingly.

Delivery

At the end of our initial meeting, if agreed, we will produce documents which detail our clients’ objectives, how we aim to achieve those objectives and the fee/charges which the client will incur for engaging our service. This relaxed and professional approach means that we meet with the client’s requirements in a timeframe to suit them.

Chapters Financial Limited continues to offer financial planning, advice and service as Chartered Financial Planners.

If you would like to discuss your Financial Planning with one of professional advisers then please contact us on 01483-578800.

We look forward to working with you.

Chapters Financial Limited is authorised and regulated by the Financial Services Authority, number 402899