Rowan Dartington writes off £1m from black hole after FSA fine Private client stock broker Rowan Dartington has been fined £511,000 by the FSA and has been forced to write off £1 million from an accounting black hole.

What has it meant? Reduction in trust Retreat to safety Reduction in complexity More focus on regulation Focus on cost

New approach to Wealth Management ? “Clients want conviction not excuses” “Benchmarking is a dying trade” Instrument Sector Tactical Strategic Asset Allocation

How do you solve it? Trust –Understand & Communicate with Clients Transparency –Buy clients into the investment strategy Regulation –Document & record accurately Trust –Be up to date and be responsive

How FIGARO Wealth can help....

FigaroWealth 14th October 2010 Mark Young Figaro Wealth Product Owner

Agenda The JHC Way – how we work Relationship Management Portfolio Management Back to Steve

One size does not fit all JHC recognise that there will always be market trends driven by, for example, changes to regulation, economic conditions, Clients becoming more knowledgeable and sophisticated. Equally there will always be approaches to Wealth Management that vary from one firm to another driven by, for example:  The firm’s business model and the products and services offered  The demands of the Clients; how much they want to be involved in the decision making process  The wealth of the Clients So how do we make sure that our software can support these varied approaches and constant changes?

The JHC way Clients of JHC are close partners Solution providers not software providers Consultative approach to software development  Consultation with clients – welcome and encourage input  Regular User Groups – Strategic, Wealth  Help direct and prioritise development roadmap Full range of complementary services  Dedicated Client Managers  Consultancy  Implementation  Training  Technical Support and Helpdesk

Overview Figaro provides a comprehensive front to back office solution over a single database Figaro Wealth brings together all of the tools required for all types of Front Office user  Wealth Manager  Relationship Manager  Portfolio Manager to service all types of client  UHNW to Mass Affluent  Discretionary, Advisory, Execution Only Rich functionality – achieved by virtue of the single database and closely integrated components

Relationship Management Figaro Database Client Data Contact Details KYC – Financial Situation Interests – Personal Information Products Wrap platform Comprehensive Enquiry Functions Relationships Third Party Details Relationships – Client or Portfolio Level Sales Pipeline Prospect management Seamless transition Document Archive Contact History CRM, Document Archive Document generation – Client letters, mail shots integration – s to/from Client, shots Correspondence from client Client forms and documentation Client Reporting – Valuation packs, tax reporting Log client contact – Phone conversations, review meetings Relationship Manager or Team Consolidated View Client Enquiry via Web Portal

Portfolio Management Strategy Asset Allocation Framework Asset level model Percentage based tolerances Stock or sector restrictions Portfolio Management Portfolio valuation and analysis tools Rebalancing of portfolio to model or asset allocation Stock switching Reverse portfolio including/excluding assets Comprehensive bulk order facilities

Portfolio Management Work Set Candidate Orders Portfolio Management Order Management Wealth Manager or Team Integrated ‘What If’ Capabilities CGT Asset and Allocation weights Cash position Amend or delete Candidate Orders Sophisticated Pre-Trade Checks Stock restrictions Sub-account cash and stock availability Compliance checks

Monitoring and Reporting Comprehensive portfolio risk monitoring using Bita Monitor GIPS compliant performance  Composite returns  Any date period  Asset and asset class performance and contribution Benchmarking  Market indices – simple or composite  Value based model returns Output on desktop or client ready report

Back to Steve….

Partnership

Lunch is served!