Stress Testing Your Financial Planning Process Post Budget For intermediary use only. Should not be distributed to clients.

Introducing Verbatim We align the talents of the investment market behind the adviser to help power profitable & compliant business models.

Learning Outcomes Exploring the key emotional intelligence drivers of client engagement with financial planning services. Stress testing your advice processes and client engagement in light of these key emotional intelligence drivers. Sharing best practice at every stage of the financial planning process, from first client engagement through to the delivery of ongoing services, using real life examples from SimplyBiz Firms. Understanding how to incorporate the shifting product landscape into your financial planning process and services.

A Greater Need for Advice The Impact of 2014 budget

The Consumer Buying Decision Process INTERMEDIARY Personal Influences Demographic Situational Involvement Personal Influences Demographic Situational Involvement Psychological Influences Perception Motives Ability and Knowledge Attitudes Personality Psychological Influences Perception Motives Ability and Knowledge Attitudes Personality Social Influences Family Roles Reference Groups Social Class Culture Social Influences Family Roles Reference Groups Social Class Culture Problem Recognition Information Search Evaluation of Alternatives Purchase Post Purchase Evaluation Source: Dibb et al, Marketing Concepts and Strategies,2006

Appeal to Emotional Intelligence Credible Connected Consistent

Successful firms short cut the process INTERMEDIARY Personal Influences Demographic Situational Involvement Personal Influences Demographic Situational Involvement Psychological Influences Perception Motives Ability and Knowledge Attitudes Personality Psychological Influences Perception Motives Ability and Knowledge Attitudes Personality Social Influences Family Roles Reference Groups Social Class Culture Social Influences Family Roles Reference Groups Social Class Culture Problem Recognition Information Search Evaluation of Alternatives Purchase Post Purchase Evaluation

The Buying Process for Advice INTERMEDIARY Problem Recognition Information Search Evaluation of Alternatives Purchase Post Purchase Evaluation Retirement Inheritance Illness/ Death Marriage or Divorce Children Business Loss or comparison Retirement Inheritance Illness/ Death Marriage or Divorce Children Business Loss or comparison Friends Family Google Social Media Press Workplace Friends Family Google Social Media Press Workplace Website Brochures Testimonial Press & PR Quality & relevance of plans Influence of individual Website Brochures Testimonial Press & PR Quality & relevance of plans Influence of individual Speed Efficiency Accuracy Precise Concise Hassle free Speed Efficiency Accuracy Precise Concise Hassle free Meets expectations Keep informed Continually relevant Reminders and prompts Meets expectations Keep informed Continually relevant Reminders and prompts

In reality....

Lead Management - Credible www 2/10 th of a second to make first impression Time spent on website Logo s Menu s Search box - 6s Social networking links s Main image s Written content s Bottom of site s

Lead Management – Credible Adviser Biography with: Experience Qualifications Professional bodies Testimonial

Lead Management - Connected

Key Considerations: Presentation of services Order of services - anchoring Number of services - framing

Lead Management - Consistent Investment Philosophy and Process: What do you believe in? Why do you believe it? How do you deliver this? If you do it, write it down For staff, clients and regulator

Service Management - Consistent What is your process for: Setting the service level? Monitoring the delivery? Managing by client, activity and adviser?

Initial Consultation - Connected

Setting & Meeting Expectations

Preparation of Plan - Connected

Implementing the Plan - Credible Investment Selection Considerations.... Risk Profiling Risk modeling and analysis Psychometric analysis and creation of questionnaires Benchmarking & testing Asset Allocation Comprehensive research Actuarial testing Continual market analysis & review Fund Manager Research Analysis of fund management company Review of manager capability and style Review wider team resource & capabilities Implementation Fund purchaseAdministrationSwitching Governance & Review Independent investment committee oversight Robust review of managers against mandate Ongoing review and communications

Implementing the Plan - Consistent

Implementing the plan - Consistent ClientAdviser Dynamic Planner Robust approach to risk & asset allocation Create Powerful Financial Planning Reports Set and monitor service delivery

NISA - a flexible destination for historic investment plans. Capital can stay with the client. Risk of capital preservation transfers to client. Longevity risk continually rising. Life-styling for a single event not relevant for many clients. Inflation and low interest rates remain a concern for income clients. The shifting product landscape

A Greater Need for Advice and product innovation The Impact of 2014 budget

The shifting product landscape Whole of the Relevant Market Fact Find & Enhanced Suitability Your Investment Philosophy Risk & Capacity for Loss Your Investment Process Funds, Platforms, Tax Wrappers etc Other Options

Enhanced suitability questions. Attitude to Risk with monetary examples of likely gains and losses. Capacity for loss assessed including impact on lifestyle if objective is not met. Client’s needs translate into a diversified portfolio appropriate for attitude to risk and capacity for loss. Adviser manages risks associated with portfolio design and management - investment, liquidity, correlation, manager, currency, counterparty, etc. The shifting product landscape

Risk Return Verbatim Guiding Principles Investments should do what they say on the tin. Greater returns carry greater risk. Low risk and high return is always too good to be true.

Innovation has started Verbatim Capital Protection Solutions Structured Deposit FSCS cover 6 Year Term 100% Capital Protection ISA and SIPP compatible Designed with Advisers Growth Option Verbatim Active Fund 3 with 100% Capital Protection Income Option Guaranteed income with 100% Capital Protection Q4 Launch – Use feedback form to request details

Tangible Ongoing Services - Connected

Believe in the value of your services

Alpha is not for fund managers... Stage Financial Plan/Cashflow Tax Planning Risk Profiling Asset Allocation Benchmarking Platform/wrapper selection Portfolio cost control Investment oversight Fund manager selection % pa ??????? Valued by client H H H H H M H M L Difficulty for client H H H H H H H M E

Engage legacy clients - Connected

Sunset Clause Action Plan Clearly define what your service is.... Document your investment philosophy and process... Build your team of suppliers to match your philosophy... Implement the 4 Stage Plan: Discover Identify Compare Execute

Learning Outcomes Exploring the key emotional intelligence drivers of client engagement with financial planning services. Stress testing your advice processes and client engagement in light of these key emotional intelligence drivers. Sharing best practice at every stage of the financial planning process, from first client engagement through to the delivery of ongoing services, using real life examples from SimplyBiz Firms. Understanding how to incorporate the shifting product landscape into your financial planning process and services.

A Greater Need for Advice The Impact of 2014 budget

Or in other words... Clearly define what your service is.... Engage with customers based on how they buy advice... Own the supply chain to your service offering... Never be reliant on any one supplier... Have confidence in the value of your services... Engage legacy clients to protect and grow your income... Stay credible, connected and consistent

Stress Testing Your Financial Planning Process Post Budget For intermediary use only. Should not be distributed to clients.