The morning starts by reviewing the tasks that have come up for review on Outlook, checking that what I have asked Transact to do has been carried out (and that is invariably the case), and also to see what else needs to be done on our clients’ portfolios. I have two new investment reports to finish off for new clients who have come to us following retail distribution review and their previous advisers either having been a bank or a small independent that is no longer trading.
When we formed Asset Investment Management in 2007, we structured ourselves differently to most companies. My colleague really enjoys the face-to-face interaction with our clients, whereas I prefer to concentrate on the technical, report writing and compliance aspects of the business. In this way, effectively each client gets ‘two advisers’, and we never have any conflict or disagreement on whose client is whose – they are all clients of the company.
Tuesday
The reports have been finished and sent to my co-director to meet the clients for the presentation. Following the FCA paper on disclosure of charges as cash examples, we are discussing our charging and service proposition model. Unfortunately, as an industry, we seem to be moving to a situation where everyone will know the cost of something, but not its value. I think we are fortunate, as we adopted an RDR-friendly structure well before it was rolled out by the regulator, and all our clients know exactly what they are charged and what they get in return. Nonetheless, a reminder incorporated into their bi-annual reviews will only reinforce this and provide evidence should the FCA come calling.
I consider some changes that I want to make on our websites to reflect both this and other forthcoming changes to practices.
We have to catch the 2.30pm train from Norwich to London as we have been invited to attend the Aberdeen Platform Awards ceremony at the Marriott hotel in Grosvenor Square. I remember the name of Grosvenor Square from watching student protests against the Vietnam War in the 1960s and agreeing with them – now I am getting dressed for a black-tie event.
Wednesday
A welcome hotel breakfast after the inevitable early morning “celebrations”. The platform awards were well attended and hosted by Kate Silverton. It was a pity that so many in attendance could not actually keep quiet during the ceremony and presentation, and she was constantly battling against the hubbub. A very poor display of manners and one that I cannot help thinking that Brian Blessed (who spoke at the Citywire awards in January) would have quelled.
It was interesting to see the number of platforms represented, together with platform service and software providers. Among them were some of the older-style platforms, for which the move to clean share classes is proving a challenge. Of course, fund rebates are banned, but some will now negotiate ‘super-clean’ share classes. As an advisory community, we cannot berate various government ministers for assuming that cheapest is best when some platforms with appalling service records try to woo us by costing less. Again, they know the price of everything, but the value of nothing.
We catch the 11.30 am train back to Norwich and catch up with emails – although I have picked these up on my smartphone while we have been away.
Thursday
Catching up with the administration in the office. I return a phone call from another firm that I thought were looking to form a strategic alliance, only to find that they are trying to poach advisers; slim pickings as there are only two of us and this is our business.
I eagerly await the results of my Solla accreditation interview, which I did a couple of weeks previously. Assuming that to be successful, I will rebuild the company’s care fee and equity release websites. I will also plan a strategy to publicise the Solla status to professional connections, all of which are warm and friendly and few of which actually refer business, either to us or to the other IFAs who vie for attention. It was this lack of two-way referrals that prompted me to qualify as a will-writer a couple of years ago – something which was invaluable in seeing a problem and formulating solutions from different perspectives.
I speak to a prospective new client who rings the office. His whole attitude is rude and snide. He has had one meeting with my colleague, did not want to sign a client agreement or a fee schedule, but now wants us to complete forms for a whole of life plan. I tell him that we do not work like that, he sighs and tells me that “I don’t think you want my business”. He is perhaps surprised when I tell him that he is absolutely right.
We have a loyal client base, all of which are active and appreciate what we do for them. We do not need to take on people with whom we can not work in harmony.
Friday
I have a lunchtime presentation with Martin Currie, whose fund manager for the Securities Trust of Scotland investment company will be presenting. I have done a lot of work on researching investment companies and ETFs in the last few months, as we fully intend to remain independent. How often we recommend such products remains an unknown entity, but at least research has been done and a rationale can be provided as to the pros and cons.
I find the meeting useful and further research will be needed when I get back to my office, but I think that I can see how this fund can be utilised in some client portfolios in future.
Back in the office I take, very briefly, some calls from a discretionary fund manager telling me that, as a small firm, I can not possibly pick funds, and that I should consider outsourcing. I check his company’s performance against my own using the fund software and find that I have beaten its performance at lower costs over the last five years.
I try not to answer unsolicited calls anymore – especially those coming up on the display as number withheld or unavailable, as invariably it is a similar story.
The week ends fairly uneventfully. My colleague will bring back some of the files that have been reviewed and I will start working on any changes and new requirements next week.
Paul Barnard is director of Norwich-based asset Investment Management
