Plant and watering can on table
Partner Content by Octopus Investments

How to start recommending specialist tax-efficient investments

“A client can have different tranches of money at different ‘speeds’ from a risk perspective and the client file needs to clearly articulate that,” says Mark.

“If a client is a 6/10 for risk overall and you have a solution that’s 9/10, it needs to be clear that for this particular pot of money, for these reasons, a client is going to be taking more risk than the rest of their portfolio.”

It’s just as important to document that the client has made an informed judgement and is comfortable with the level of risk they are taking with that particular portion of their assets.

Mark says: “It’s not always clear that the client has an understanding of the risks. There’s a bit of an obsession around the tax benefits – which are fantastic – but our file review team would be looking to see that the adviser has addressed attitude to risk, capacity for loss and how that impacts the recommendation within the case.”

Writing your first case

One adviser who recently wrote his first BPR case is Mark Wheeler from True Potential Wealth Management.

Wheeler gained knowledge through a range of resources from Octopus and he explained: “The brochures, illustrations, quotations, it’s all very simple and streamlined. I also went into the archive to see old webinars, joined live webinars and spoke to my local representative. I felt very confident by the end that I knew what I was offering.

“When you present it to the client – all the literature, the information from providers like Octopus is clean and simple to understand, telling the client and their family exactly what they need to know.”

After writing his first case, Wheeler quickly gained confidence to advise similar investments to other clients. He is now re-visiting clients who’ve been concerned about locking their money away. He is also working with his accountant with regards to tax-efficient investments, to bring more business in from that direction too.

Kickstart your tax-efficient knowledge.

Octopus can help you boost your knowledge of tax-efficient investments. Sign up to our online show in September, covering key annual and one-off client planning opportunities that these types of investments can unlock. As well as logging CPD, you’ll leave armed with the knowledge needed to add more value for your clients. Visit octopusinvestments.com/tax-planning-show

These investments are not suitable for everyone. Any recommendation should be based on a holistic review of your client's financial situation, objectives and needs. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: August 2021. CAM011245

For professional advisers and paraplanners only. Not to be relied upon by retail investors.