CompaniesJul 22 2015

Firing Line: James Priday

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

A lot has been said about the evolution of automated and simplified advice services in the wake of the retail distribution review

For Mr Priday, advisory firms have been slow to offer a simplified service because of concerns over the lack of clear regulatory distinction between guidance and advice.

“Ninety per cent of the UK population probably do not need full blown financial advice or a financial planner. Simple advice is needed for simple choices.”

Mr Priday unveiled a plan to launch an online simplified advisory service by the end of August which will be integrated into Strawberry Invest, an execution-only platform which he founded.

He said the simplified advisory service would require the investor to complete an online questionnaire to gauge how much money they are looking to invest, for how long and their attitude to risk.

It would tailor a report from the investor’s responses, complete with a list of recommended investments. Details of how the service would be funded are yet to be disclosed.

Mr Priday said that he is also considering operating a phone-based simplified advice service, although details of how it would work is yet to be discussed.

Mr Priday is something of a rarity in the financial service industry.

He is young, aged 27, yet he holds the position of director at the Devon-advisory firm which first formed in 1991- specialising in accounting, tax, wealth, pensions and law

Youth can be a challenging thing in an industry widely populated by ageing financial planners – many of whom are approaching retirement, according to Mr Priday.

“When dealing with clients, who are often aged 50-plus, young advisers have to prove that we are pretty good, pretty soon. Some organisations think that because you are in your 20s, you are not capable of dealing with the wealthier clients.”

He added: “If you are good at what you do, age does not have to be a factor. I think one problem we have in this industry is that a lot of people hide behind age and perceived experience. I often find that young people are a lot hungrier, come in with fresh ideas and embrace technology.”

Mr Priday has a background in accountancy. After achieving a first-class degree in accounting and finance at Exeter University, the institution awarded him a scholarship to study accounting and finance at master’s level free of charge – while simultaneously employing him to teach first-year undergraduate accountancy students.

So perhaps more than many, he keeps a close eye on changes to investment rules, such as the Budget consultation on whether to extend the list of Isa-qualifying investments to equity and debt securities offered by crowdfunding platforms.

For Mr Priday, the propositions are simply too risky to include within tax-efficient individual savings accounts.

He added: “The reason why we have a regulatory structure is because there is a certain level of due diligence needed when it comes to making investments. Also, 90 per cent of smaller businesses fail, so giving investors the opportunity to put their money in these types of businesses, with little due diligence done on them, is a very dangerous thing.

“I think these types of investments should be reserved for professionals and high net-value clients who can afford the risk.”

After university, Mr Priday joined Prydis in 2011. Since then the advisory firm has undergone a number of changes, not least quadrupled in size since the implementation of the RDR.

There is a greater emphasis on providing a more holistic service to clients, Mr Priday said, adding that he aims to further bolster the legal and accountancy arm of the firm.

Strawberry Invest, the online investment platform, a white-label version of Investment Funds Direct Ltd’s core platform, has also done well since it launched in February last year.

It has more than 900 registered users, while its assets under management figure is kept a secret for business purposes, according to Mr Priday.

What does Mr Priday most enjoy about his role?

“Dealing with different types of people from a client perspective and professionally. In my roles I have dealt with a lot different types of people from a wide range of businesses, which is something that I’ve enjoyed.”

He added: “Our biggest challenge is to find a good quality adviser. I would say that one in 20 advisers who we interview is actually good.”

Outside the office, Mr Priday aims to maintain a sporty and healthy lifestyle and enjoys roaming on his motorbike.

Myron Jobson is features writer at Financial Adviser

JAMES PRIDAY’s career ladder

Early 2015 - present

Committee member, CISI West Country Committee

2013 - present

Founder and director, Strawberry Invest

2011 - present

Director and investment manager, Prydis Wealth

September 2010 - April 2011

Master’s student and teacher, University of Exeter

Harking back to the sentiment of offering a simple service, Mr Priday said that Strawberry Invest adopts a basic design supported by educational material to make investing accessible to a wide range of people.

“Clients often tell me that their children are looking to do something with their money. Strawberry is an easy place to do this and at a low cost.”

He said that the Prydis Wealth is set to launch a client portal in August, which he claims would allow clients to have a better relationship with their respective planners.

The integration of technology into the advisory process is something of increasing importance, according to Mr Priday.