1. Profit through Partnership
With our research partners...
Profit through Partnership
[February 2014]
[wave two]

2. Why there is profit through partnership
Foreword
Many commentators feared the introduction of the RDR at the start of 2013 would have an Armageddon-like impact on the sector. And while last year was certainly an eventful one in terms of regulation, for many advisers (if not providers) it was more business as usual than expected. That said, a year in there is still little certainty around how the industry will shape up in 2014 and beyond. Platforms, providers and advisers alike have had their heads down doing what’s necessary to be “
becoming increasingly commoditised. Against this backdrop it becomes more important than ever to draw a straight line from business mission and activity. Every resource either counts or it counts against you.
While advisers have made some significant headway, it remains less clear the role many providers play in the new world. Providers’ and platforms’ ability to protect their position in the market and thrive post-2014 will likely be dependent on their ability to successfully identify(!) and innovate on their key territories, differentiating on more than product and price as advisers see them as increasingly homogenised.
compliant, mostly revolving around the mechanisms of facilitating adviser charges. Which is a good starting point(!) but it should be just that. The start. Satisfying the regulator is not the same as satisfying the market and survival to date will in no way guarantee success in the future.
There is no doubt that it’s a lower, slower world and that costs that were insignificant now stick out like rocks through water in a higher risk environment. But RDR won’t kill businesses – poor business plans will.
Pressure is being felt across the entire financial value chain which continues its disaggregation. With client fees moving south of 2% and the advice fee around 1%, some parts of the chain may feel the heat more than others. The shift to passive funds, increased uptake of platforms and move to centralised investment propositions place particular pressure on providers as advisers see many products and platforms as
Competition is driving the gap between expensive and cheap ever narrower. As that happens support becomes the real deal breaker or differentiator. ”
Financial adviser [business owner]
Why there is profit through partnership
With all best wishes for your success.
Tony Wickenden
Jt .Managing Director
Technical Connection limited
Phil Wickenden
Managing Director
So Here’s The Plan limited e: m: e: m: e: m:

3. Maximising returns on adviser support
Uniquely designed to improve the effectiveness and efficiency of your adviser facing activity and the resulting business outcomes, PTP:
Identifies the levers of business and technical support that will have the biggest positive impact for you in the adviser market.
Clearly benchmarks your brand against a) your competitors across support imperatives and b) average market spend and resource allocation in each area.
Points clearly to the optimal blend of support services (content and delivery) required to meet and exceed your business objectives with the advisers you want to do business with.
Enables you to plan and deploy resources more scientifically and with greater confidence that they will deliver the desired outcomes.
As a subscriber to PTP you will receive, in addition to our full report twice a year:
a full debrief, going into more detail on your performance specifically;
a top-line technical support spend and resource allocation benchmark against all participating providers;
a personalised strategic plan – taking into account your business objectives.

4. Methodology
Nationally representative sample of 200 firms in terms of number of RI’s, geography and AUM.
We spoke in depth, over the phone, to 200 advisers, sampled from a robust panel of Technical Connection adviser clients and So Here’s The Plan’s constantly cleaned database of active advisers.
All interviews were conducted by telephone, lasting minutes on average.
Interviews were conducted during December 2013.
Participating advisers were offered access to online client facing material from Technical Connection in return for their participation.
Individual anonymity agreed. 4 4

5. Respondent Profile - 1
Q. Approximately, what are your Assets under Management?
Q. How many Registered Individuals are there within the business?
% of advisers
Closely mirroring the profile of advisory businesses in the UK, the majority of the businesses sampled (52%) had £0- £19,999,999 in AUM or had between one and five RI’s (86%).
That said, the sample includes representation from larger businesses, with 6% of the sample having £100m+ AUM.
3% of firms interviewed had 20+ RI’s. 5 5

6. Respondent Profile - 2
Q. How many providers / platforms have you received some form of support from over the last 12 months?
Q. Where in the UK are you based?
Twice as many advisers (31%) access support from more than five providers than the previous wave (16%)
Scotland (12%)
69% of our sample have used three or more providers for technical or business support over the last 6 months (up 10% from wave 1), further putting paid to assertions from many advisers that provider / platform support is no-longer required. While advisory businesses have become less reliant than before on providers the cost burden on business is significant and good support is well received.
North
(39%)
Midlands
(13%)
Wales
(3%)
South
(33%)
% of advisers
The vast majority of the sample had been receiving support (in one form or another) from multiple providers / platforms over the previous 12 months – with 42% accessing support from four or more providers. Regulatory factors and scaled back availability mean that accessing business and technical support from one single source is now very difficult and even undesirable.
The sample was split relatively wide in terms of geography. While over a third of the sample (39%) were based in the North of England, another third were based in the South (33%) a further 13% in the Midlands. The remaining sample was split between advisers based either in Scotland (12%) or Wales (3%). 6 6

7. Respondent Profile - 3
Q. Which type of business would you classify yourselves as?
It has long been suggested that the RDR will have a significant impact on the extent to which firms stay ‘independent’ or become ‘restricted’.
For now, at least, evidence suggests that advisers are prepared to wait and see which side of the fence public sentiment (fuelled no-less by the media) will fall regarding restricted models. While the benefits (cost / risk / time) are clear, the label itself (and negative connotations) remains less palatable and advisers are in no rush to move first and risk getting shot down. 7 7

8. 2. 3. 4. Contents Spontaneous Brand Recall Business Imperatives
Provider & Platform Benchmarking
Building Better Support
Providers standing out – positive…………………………………………………………………………………11
Changes wave on wave…………………………………………………………………………………………...12
What drives positive recall & what good looks like……………………………………………………………..14
Providers standing out – negative………………………………………………………………………………..16
What poor looks like……………………………………………………………………………………………….17
Brand associations – the personality test……………………………………………………………...…….…18
Net brand scores and provider mapping…………………………………………………………………..……21
Relationship with support………………………………………………………………………………...……….26
Implications & opportunities………………………………………………………………….………………..….28
Page 8
What’s important - snapshot………………………………………………………………………………..…….30
Changes this wave……………………………………………………………………………… …..…..31
Claimed importance of all 15 technical and business support areas………………………………..…….…32
How priorities differ by adviser firm type………………………………………………………………...………33
Reactive support – why it is so important………………………………………..………………………...……35
Pro-active support – why it appears less important……………………………………………...…………….36
Which part of adviser businesses value different support………………………………………….…………38
Implications and opportunities………………………………………………………………………..…………..40 ? 2.
Page 22
Advisers assess the performance of providers and platforms they have used in each of our 15 technical and business support areas:
Assessment of ‘what good looks like’ in each of these areas.
Leaderboard……………….…….43
Consultant support………….…..44
Central support……………..…...50
Central resource…………..….…56 3.
Page 35
Snapshot……………………………………………………………………………………………………….……..64
The influence of product / support / service / brand in decision making………………………….…………...66
Overall industry performance vs. stated adviser importance across all 15 support areas………………..…69
The delivery gap explored………………………………………………………………………………….…….…70
Opportunities for valued differentiation………………………………………………………………….………...72
Measuring adviser propensity to do business with providers / platforms…………………………………..….73
Stated importance vs. derived importance – identifying the areas that have a greater impact on propensity to do business than advisers claim……………………………………………………...………..….77
Mapping performance vs. propensity to do business……………………………………………...………..…..74
Implications and opportunities………………………………………………………………………………….….79 4.
Page 52

9. Section 1. Spontaneous Brand Recall This section explores:
Who advisers say – top of mind – they associate with excellent business and technical support
What those providers & platforms that stand out do well, in the eyes of advisers
Who advisers associate with poor business and technical support
What drives consistently poor support
Provider & platform brand associations and their relationship with support
Section 1.
Spontaneous Brand Recall

10. “ “ 2. 3. 4. Section 1: Spontaneous Brand Recall
Business Imperatives
Provider & Platform Benchmarking
Building Better Support
Four providers / platforms (with Standard joining the pack) stand out commanding nearly half of all spontaneous association with excellent technical and business support:
Axa (9%), Aviva (8%) and Cofunds (8%) also registered, though with markedly lower level of cut through.
There is a distinct lack of personality or depth of connection between advisers and providers / platforms. Any association that there is hinges (mostly) on functional elements of product or service that are unlikely to differentiate. ? 2.
It is also worthy of the note that the top five ranking in terms of spontaneous recall are also platforms.
What advisers say they value about the business and technical support these providers / platform deliver is:
Relationships & contact
Well sign-posted online content
Technical expertise
Speedy resolution to problems and
Business development support (new). “
When given the opportunity, most advisers struggled to attribute any feeling, thought or emotion to most providers and platforms beyond the purely functional. 3. “
Cofunds (12% advisers) Skandia (9%), Funds Network (7%) and AEGON (5%) were most frequently associated with bad support, though 44% of advisers said that no-one consistently falls foul (less than the 49% last wave).
Problems stem largely from inconsistent contact, poor relationship management, un-navigable on-line content and the inability to resolve problems quickly. 4.

11. 11 Providers Standing Out
Q. Which providers / platforms have stood out for delivering excellent business and technical support? (Name a maximum of two)
TIER 1
TIER 2
TIER 3
Indicates ranking changes vs. last wave. 1 1
% of advisers 3 1 8 1 3 1 6 2 3 3 3 2
Four providers / platforms have the strongest spontaneous association in terms of delivering excellent technical and business support, with a wide range of others referenced less frequently.
Transact and Fidelity/FundsNetwork top the list of providers / platforms that stand out for delivering excellent business and technical support, controlling a quarter of all spontaneous recall between them. Skandia and Standard Life are only marginally behind with 16% and 15% of advisers specifically mentioning them (representing 11.5% and 11% of all recall).
There is a significant drop in recall to the second tier of providers, including AXA, Aviva and Cofunds.
Q. Which providers / platforms have stood out for delivering excellent business and technical support? (% OF RECALL)
Bright Grey
L&G
Friends Life
Novia
7IM
MetLife
Elevate
LV=
Widows
Scot’s Life
True
SIPP
Ascentric
Nucleus
Alliance Trust
Prudential
Zurich 11 11