BACK TO BASIC BUILDING BLOCKS Processes, IT, People and Efficient Business Practice Lawrence Emm Business Change Specialist For financial advisers only

ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY PEOPLE CAPABILITY PROCESS AND IT PRICING SERVICE CONTENT PROPOSITION CLIENT NEEDS THE COMPLETE PICTURE

AGENDA Review of last session Business process mapping for post RDR environment Efficiencies from IT Staff buy-in and commitment Capacity and capability for consistent delivery Next session

For financial advisers only ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY PEOPLE CAPABILITY PROCESS AND IT PRICING SERVICE CONTENT PROPOSITION CLIENT NEEDS THE COMPLETE PICTURE

“Efficiency is doing better what is already done” For financial advisers only Peter F Drucker

CONTEXT For financial advisers only Implementation is about building an effective operating platform to enable:  clarity for all clients – new and existing  consistent approach - by everyone in the business  consistent delivery of advice and ongoing service  efficiency  profitability  measurability

ASSESSING SUITABILITY For financial advisers only “All firms providing investment advice should ensure that they have robust processes and controls ….”

PLATFORMS - DUE DILIGENCE AND EFFICIENCY For financial advisers only

PLATFORMS - DUE DILIGENCE AND EFFICIENCY For financial advisers only

BUSINESS PROCESS MAPPING For financial advisers only

CLEARLY DEFINED STAGES OF THE PROCESS CLIENT ENGAGEMENT CLIENT DISCOVERY ANALYSE AND PREPARE SOLUTIONS IMPLEMENT SOLUTIONS REVIEW AND RETAIN For financial advisers only

CLEARLY DEFINED STAGES OF THE PROCESS CLIENT ENGAGEMENT CLIENT DISCOVERY ANALYSE AND PREPARE SOLUTIONS IMPLEMENT SOLUTIONS REVIEW AND RETAIN For financial advisers only

THE CLIENT JOURNEY - TOLLARDAY EXAMPLE For financial advisers only CLIENT ENGAGEMENT Handle Client Enquiry Send Client Welcome Pack Service Call – telephone follow up Make Appointment 1 st Client Meeting Send Client Confirmatory Letter Input client data to CRM software Client Engagement Process

CLIENT ENGAGEMENT PROCESS For financial advisers only Handle client enquiry – gather basic information Send client a “Welcome Pack” – include Fact Find Follow up (service) telephone call to client Agree date/time for first meeting Pass information to adviser Send confirmation letter/ to client Create client file Input data to back office/CRM system Service call to client following Fact Find receipt Prepare first meeting pack

THE CLIENT JOURNEY - TOLLARDAY EXAMPLE For financial advisers only CLIENT ENGAGEMENT Client Engagement Tools and Materials Client Enquiry Form CRM System Tool New Client Welcome Pack Tollarday Key Value Messages Standard and Bespoke Client Letters Diary note for client follow up

CLIENT ENGAGEMENT PROCESS For financial advisers only TASK/PROCESSWHO WILL DO ITTOOLS/MATERIALS

BUSINESS PROCESS MAPPING For financial advisers only

CLIENT RETENTION PROCESS For financial advisers only Undertake client surveys Analyse data – implement improvements – TCF and MI Prepare client Review lists (monthly/quarterly/half-yearly/annually) Review client file for advice updates Prepare client valuations Develop market commentary Send Review pack to client Undertake Review – F2F or remote? Update client file Input data to CRM/Back Office – service schedule Create and send revised Plan/Report summary to client

EFFECTIVE USE OF IT AND TOOLS For financial advisers only

“Efficiency is doing better what is already done” For financial advisers only Peter F Drucker

I T SYSTEMS AND TOOLS For financial advisers only Platforms Planning Tools Back Office Provider Extranets & E-Services Report Writers Suitability Report Scanning Tools Research Systems

BACK OFFICE SYSTEMS For financial advisers only

BACK OFFICE SYSTEMS For financial advisers only ADDITIONALLY, THERE ARE OTHER SUPPLIERS AND A RANGE OF ‘BESPOKE’ SOFTWARE SOLUTIONS AVAILABLE

BACK OFFICE SYSTEMS For financial advisers only what they might offer…  Client Data Management  Fact Find  Policy data  Business Register  Marketing Resources  Centralised Risk Profiling  Client Charging Reconciliation  Management Information – Data Interrogation and Reporting  Online client access for self-service and semi-automation of some services

BACK OFFICE SYSTEMS For financial advisers only some of the issues…  will it do what you want it to do? - most use <20% of system  initial & ongoing training: major time, effort & cost  licence costs vary considerably  services and how they are delivered differ  IT infrastructure: data storage & back-up, servers & maintenance  migration of existing client data  ease of moving to another provider in future?

HOW TO DECIDE ON THE RIGHT OPTIONS For financial advisers only

RESEARCH SYSTEMS AND TOOLS For financial advisers only ADDITIONALLY, THERE ARE OTHER SUPPLIERS AND A RANGE OF ‘BESPOKE’ SOFTWARE SOLUTIONS AVAILABLE

ADDITIONAL SYSTEMS AND TOOLS For financial advisers only ADDITIONALLY, THERE ARE OTHER SUPPLIERS AND A RANGE OF ‘BESPOKE’ SOFTWARE SOLUTIONS AVAILABLE

THE IDEAL SCENARIO For financial advisers only CLIENT DATA BACK OFFICE CRM PRODUCT ANALYSER PLATFORM ANALYSER MORTGAGE ANALYSER PENSION ANALYSER INVESTMENT ANALYSER CLIENT VALUATIONS RISK ANALYSER PROTECTION ANALYSER

PLATFORM AND WRAP PROVIDERS For financial advisers only  28 providers and growing  Considerable regulator activity  Detailed due diligence essential  Whether to choose 1 or more  Can deliver considerable business efficiencies

PLATFORMS - DUE DILIGENCE AND EFFICIENCY For financial advisers only

IN WHICH AREAS CAN I T SUPPORT YOUR BUSINESS? For financial advisers only Fact Find Marketing and Promotions Risk Profile and Analysis Fund Selection and Management Invoicing and Payment Tracking Compliance Illustrations and Quotations Client Reports Lifestyle Planning and Analysis Product Selection Will Writing Diary Management Workflow Management Data Management CRM Website Trust Preparation Client Service Delivery Shortfall Analysis Document Management Management Information Remote Access Client Access Client Reviews On-Line Application Processing New Business Processing Client Presentations Valuation Reports Newsletters Market Commentary Performance Management

USING IT TO INCREASE EFFICIENCY AND CONSISTENCY CLIENT ENGAGEMENT CLIENT DISCOVERY ANALYSE AND PREPARE SOLUTIONS IMPLEMENT SOLUTIONS REVIEW AND RETAIN For financial advisers only  Website  CRM System  MS Word  Workflow Manager  Outlook  Client Journey Tool (pages)  MS PowerPoint  Electronic Client Questionnaire  Truth-Voyant  IDD/KFD Compliance  Risk Profiler  CRM system  MS Word  Workflow Manager  Client Agreement  Synaptic – etc.,  O&M – etc.,  Shortfall Analysis  Client Reporter  Portfolio Planner  Lifestyle Planner  CRM System  MS Word  MS Outlook  Invoice Tool  Provider interface  Illustrations  Workflow  CRM System  Shortfall Analysis  Client Reporter  Lifestyle Planner  MS Outlook  Provider interface  Illustrations  Client Journey Tool (pages)  MS PowerPoint  Workflow  MS Outlook  Invoice Tool  CRM System  MS Word  Workflow  Ezine - Podcast  Website  Excel – Valuation Reports  Management Reports (MI)  On-line Service Questionnaire  Invoice Tool

PEOPLE Ensuring we have the right people, with the right skill sets, to fully meet client expectations For financial advisers only

ARE CURRENT ROLES STILL APPROPRIATE? Financial Planner: To acquire new clients and maintain key introducer and client relationships Para-planners: To provide extensive technical support to the Financial Planner(s) Client Support Services: To provide comprehensive administrative support to the PPs and FPs “ADVICE” “TECHNICAL SUPPORT” “ADMINISTRATION” For financial advisers only

WHAT DOES THE BUSINESS MODEL REQUIRE? “ADVICE” “TECHNICAL SUPPORT” “ADMINISTRATION” Conduct product research, obtain illustrations Liase with clients and their other advisers where appropriate Maintain accurate client files and update software Prepare client reports – with guidance from Adviser Construct suitability and reasons why letters Attend client meetings with Adviser Identify new clients and introducers Initiate relationships with new clients and introducers “Fact find” with clients, determine “financial strategy” Deliver recommendations Maintain accurate client records Respond to client servicing enquiries Prepare illustrations Prepare invoices Deal with post and telephone enquiries For financial advisers only

ASSESSING BUSINESS CAPACITY AND CAPABILITY For financial advisers only

SUMMARY For financial advisers only Review of last session Business process mapping for post RDR environment Efficiencies from IT Staff buy-in and commitment Capacity and capability for consistent delivery Next session – 21 June – “Client Engagement”

For financial advisers only

This presentation is designed for and directed at professional financial advisers. It should not be relied on by consumers. This document is based on Skandia’s interpretation of the law and the HM Revenue and Customs practice as at January We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investment funds may change. For financial advisers only

Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Skandia provides you with access to its investment platform, known as Skandia Investment Solutions. Within this platform you can open an ISA and Collective Investment Account provided by Skandia MultiFUNDS Limited, and a Collective Retirement Account and Collective Investment Bond provided by Skandia MultiFUNDS Assurance Limited. Skandia Life Assurance Company Limited, Skandia MultiFUNDS Limited and Skandia MultiFUNDS Assurance Limited are registered in England & Wales under numbers , and respectively. Registered Office at Skandia House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. All companies are authorised and regulated by the Financial Services Authority with FSA register numbers , and VAT number for all above companies is For financial advisers only