1. Conference key note
Ben Goss, CEO, DT

2. Ensuring Investment Suitability In a digital world
4th Annual Dynamic Planner Conference, 2016
Good morning ladies and gentlemen and let me add my own welcome to you all, its wonderful to see so many clients here in the same room – thank you for coming
I am very excited today, we have something truly revolutionary to show you! Something that will literally be a force multiplier for your business
But first, I want to take stock of where we are as a firm and as an industry

3. Dynamic Planner has seen record usage in every quarter for the last four years
30,000 investment searches a month
1,000 investments profiled from 100 managers
£1.7bn recommendations 2015 (£1.2bn 2014)
£2.0bn managed against risk profiles
25 platforms integrated, 7 WealthConnect, iOS app usage up 300% in 6 months
MyPlanning active customers up 37%

4. Suitability remains a central focus for the FCA and industry
Assessing Suitability
Finalised Guidance
March 2011
Dear CEO
Letters
June 2011
TR15/12
Suitability of investment portfolios
Dec 2015
TR16/1: Assessing suitability
Jan 2016
MiFID II
2018
Significant suitability fines and sanctions:
2012 – Wealth manager - £412k
2013 – Asset manager - £3m
2013 – Intermediary - £6m
2014 – Asset manager - £18.6m
2014 – Bank - £12.4m
2016 – Wealth manager - £1.2m
Numerous back book reviews for larger firms
Numerous Directors banned for suitability failures from smaller intermediary firms
The regulator continues to have a laser like focus on suitability
Since 2011 there have been a number of thematic reviews, including more recently TR16/1 on research and due diligence, which Rory Percival from FCA, will speak on later and TR15/12 looking at the suitability of investment portfolios in wealth management firms and private banks in which two thirds of firms were fell substantially short of FCA standards or needed to make improvements to meet those standards.
Significant suitability fines and sanctions have been implemented over the last 4 years as we know
Looking forward we also have to prepare for MiFID II which is expected to raise the bar again on knowing your client and ensuring suitable investment advice, particularly around investor experience.
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5. What have we done to help in the last year?
So with this backdrop, what have we done to help over the last 12 months?
We have been busy and have launched and developed a number of really key services this year which help deliver our 3 brand promises

6. 1,000+ downloads in 10 days
At this conference last year we previewed the new iPad app to help advisers. When we launched in in April we had over 1,000 downloads in the first 10 days! Firms love the way it helps them accurately risk profile clients in an engaging way feedback includes: “Awesome”, “Splendid”, etc etc

7. 30,000 searches each month and growing

8. £2bn in risk target managed funds and growing

9. Unique ACE Ratings launched in January
Unique ACE Ratings launched in January. Adopted by Bankhall for their research service
ACE ratings

10. Dynamic Planner portfolio risk breakdown and My Planning client view

11. A new suite of reports to help you look good to your clients

12. There is an even bigger change coming
Percentage of UK adults
Source: Deloitte Mobile UK, 2015

13. Healthcare is in the middle of a revolution
Source: Digital health in the UK. Deloitte for Office of life Sciences. September 2015

14. Online dispute resolution in the US handles 60 million cases a year
Law is too
Online dispute resolution in the US handles 60 million cases a year
Dispute avoidance online evaluation informational
Tier 1
Dispute containment online facilitation inquisitorial
Tier 2
Dispute resolution online judges adversarial
Tier 3
Source: Civil Justice Council, Report, 2015

15. Financial advice and planning is not immune
Source: FCA Treasury, Financial Advice Market Review Call for input, October 2015

16. You obviously feel the same
What do you feel are the main benefits of providing online advice?
Source: Dynamic Planner adviser user survey, 55 firms. December, 2015

17. But the same approach is not suitable for all clients and cases
engaged
Engaged
Simple
low value
Complex
high value

18. And the volume of opportunities is significantly different too
Not
engaged
Engaged
Simple
low value
Complex
high value

19. And the volume of opportunities is significantly different too
Not
engaged
Do it
For Me
Do it
For Me (DIFM)
PS I only have a small amount to invest, so your normal process will be unprofitable
Engaged
Do It Yourself
(DIFM)
Simple
low value
Complex
high value

20. DT’s Digitally Supported Advice roadmap
Not
engaged
Self-serve
support
Planner - driven engagement
Engaged
Simple
low value
Complex
high value

21. Planner - driven engagement
Not
engaged
Self-serve
support
Planner - driven engagement
Engaged
Simple
low value
Complex
high value

22. Planner-driven engagement: Experience questionnaire

23. Planner-driven engagement: Risk profiling invitation module
Client requests

24. Planner-driven engagement: Risk profiling invitation module
Send reminder

25. Planner - driven engagement
Self-serve support
Not
engaged
Self-serve
support
Planner - driven engagement
Engaged
Simple
low value
Complex
high value

26. Self-serve support: the problem
Platform
Transaction
Administration
Advice
Client discussion and basic fact find
Research, write and check suitability letter
2-3 hours adviser
Marginal to loss making!
Fees: £350 - £450 minus
Costs: £330 - £510 =
Arrange business
ID Verification
Application forms, paperwork, chasing and admin
Figures based on DT client research 2016: £150 per hour billable rate for advisers, £30 per hour administrator. Typical adviser charge 3% initial and 0.5% ongoing
1-2 hours
admin

27. Dynamic Planner AccessAdviceTM
Dynamic Planner AccessAdvice will deliver your advice and use WealthConnect to submit transactions and monitor portfolios
Platform
Transaction
Administration
Dynamic Planner AccessAdviceTM
Access Advice app
Self-serve advice
Track transaction & documents
Monitor portfolio
Your:
Brand
Service levels
Product
Platform
Investments
Planning rules
Suitability report
Agency
Back office
Fees
WealthConnect
Check and submit transaction
Automated progress alerts from platform

28. What will AccessAdvice do?
New money I
ISA
New money II
GIA
PPP
Existing arrangements
Portfolio reviews
Alerts
Top ups
Rebalances
Switches
Optimisation
Pension consolidation
Retirement income
Simple
low value
Complex
high value

29. Self-serve support: Dynamic Planner AccessAdvice

30. Profitable relationship from the start!
AccessAdvice will use WealthConnect to submit transactions and monitor portfolios
Platform
Transaction
Administration
Advice
Client discussion and basic fact find
Research, write and check suitability letter
15 minutes
Adviser/
paraplanner
2-3 hours adviser
Profitable relationship from the start!
Fees: £ minus
Costs: £50 =
Arrange business
ID Verification
Application forms, paperwork, chasing and admin
1-2 hours
admin
30 minutes
admin

31. AccessAdvice will open up a huge new addressable market for you
This would mainly appeal to younger clients and people leaving things to the last minute (often the same people!) - being able to do this online from an app would really help. 
We have a lot of clients with ISAs, and would look to offer this to existing clients.
This would be good for 'reviving’ clients who have been dormant for some time -  some firms have a lot of clients who may have since gone to other advisers, potentially being a missed opportunity.
15 million households
with £1k - £50k to invest*
Not
engaged
It’s another string to our bow, and would help us with the £3-5k type of client. 
Engaged
Simple
low value
Complex
high value
 In terms of time taken, I could see this going from 5 hours to 45 minutes work for us

32. Next steps Feedback: today!
See the team today with iPads
Answer questionnaire on feedback today
Contact your account manager
Participate in early adopter programme: Starting now
Participate in adviser and consumer research and testing programme
Influence design
FAMR
Launch with early adopters: later this year

33. bengoss@dynamicplanner.com @bengoss dynamicplanner.com/bensblog
Thank you
@bengoss dynamicplanner.com/bensblog