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Are you tired of the last-minute scramble every March? Prepare for the upcoming tax year’s end now with our expert tips from the We Complement team. Here’s a more detailed breakdown by our team members:

**Hannah: Carry Forward Calculations**

Don’t risk losing carry-forward allowances—calculate early. Waiting may result in missing information, potentially costing you valuable allowances. Consider creating a designated folder for each client, ensuring you have all necessary documents in one place. Early preparation also allows you the opportunity to address any discrepancies or missing details directly with clients or providers, streamlining the entire process.

**Paul: Client Review and Record Update**

Take this time to review active clients comprehensively. Beyond updating back-office records, delve into the client relationship. Are there changes in their financial goals? Any major life events that might impact their financial planning? By proactively addressing these aspects, you not only fulfill your compliance requirements but also strengthen your client-adviser relationship.

**Kathryn: Client Annual Reviews Spreadsheet**

Maintain an overview of client annual reviews using a comprehensive spreadsheet. Add review tasks to the back office system for each client to stay organised and on track. Additionally, consider implementing automated reminders for upcoming reviews. This not only reduces the risk of oversights but also ensures a consistent and timely approach to client interactions, enhancing overall service quality.

**Nicola: Revise and Update Annual Review Process**

Tailor your annual review process to meet your company’s and clients’ evolving needs. In addition to workflows, explore technology-driven solutions that can further streamline the review process. Automation tools can assist in data gathering, report generation, and even client communication. By embracing technology, you not only save time but also position your firm as forward-thinking and client-focused.

**Lucy: Plan Ahead with Providers’ Timescales**

Plan strategically, considering providers’ timescales. Beyond knowing their deadlines, establish proactive communication channels with key providers. Understand any changes in their processes or documentation requirements. Building strong relationships with providers ensures smoother collaboration, potentially unlocking additional support or insights beneficial for both parties.

In conclusion, having a well-defined strategy for managing your workload throughout the tax year is essential. Prioritise tasks, delegate effectively, and plan ahead to avoid last-minute scrambles. Consider leveraging resources like online tools or outsourcing firms to enhance efficiency.

Take a proactive approach to tax year end tasks, and ensure your clients receive top-notch advice and service. For a detailed discussion or assistance with your business, contact us hello@wecomplement.co.uk or call us at 01472 728 030.

Prepare now, and future you will thank you for a stress-free tax year end!

The We Complement Research & Due Diligence Service includes a comprehensive collection of documents which are more than just a centralised investment proposition. Our documents delve deep into the governance structure of financial planning firms. Leaving behind a trail of unique ‘fingerprints’ that distinctly represent each firm’s ethos. 

Navigating the Landscape 

At the core of our service is the meticulous examination of critical elements, including a firm’s central investment policy and proposition (CIP), central retirement proposition (CRP), target client market/segments, and the platforms and portfolios in use. While the starting point generally is consistent, the finished documents reflect the unmistakable identity of each firm. 

Embracing the Accord Initiative 

We have integrated the Accord Initiative into our research, enhancing the ability of advice firms to demonstrate suitable and compliant advice. In particular, our approach aligns seamlessly with Consumer Duty, Product Governance (PROD), COBS, Sustainable Disclosure Requirements (SDR), and sustainable investment labels. 

Consumer Duty and PROD: A Commitment to Excellence 

Consumer Duty lies at the heart of our service, ensuring financial planning firms act to deliver good outcomes for their retail customers. Subsequently, we meticulously address the four main consumer duty outcomes. Emphasising products and services, price and value, consumer understanding, and consumer support. Our commitment extends to acting in good faith, avoiding harm, and enabling customers to pursue their financial objectives. 

Furthermore, if we delve deeper into our approach, adhering to FCA FG 22/5 6.80. This involves addressing granular aspects, including target market specificity, product design, vulnerability considerations, distribution strategies, and ongoing monitoring. Evidently, our commitment ensures optimal consumer outcomes. 

PROD 3: An Unavoidable Chapter 

Despite being often overlooked, Chapter PROD 3 of the FCA Handbook remains a focal point for us. We meticulously cover key rules relevant to both distributors (advisers) and manufacturers (providers), ensuring there is no room for ambiguity in compliance. 

Investment Policy: A Collaborative Approach 

Teaming up with the firm’s ‘Consumer Duty Champion,’ we provide comprehensive research and due diligence support to crystallise the firm’s unique investment policy. This includes clarity on investment and platform selection, ESG considerations, passive/active stance, and decisions on outsourcing or in-house investment management. 

Client Segmentation: Unveiling Unique Fingerprints 

While not explicitly mandated by Consumer Duty or Product Governance rules, our service empowers firms to segment their customers effectively. Through a straightforward framework within the centralised investment proposition, we enable firms to identify and evidence their target market at a granular level. This means considering characteristics, risk profile, complexity, and product or service nature. 

Value for Money: Beyond the Bottom Line 

Value for money assessments, a crucial outcome of Consumer Duty, is seamlessly integrated into our process. We go beyond the mere evaluation of costs. Considering the nature of products or services, associated limitations, and the expected total charge over the client-firm relationship. Our tailored framework ensures a transparent demonstration of fair value. 

Addressing Vulnerability: A Caring Commitment 

Consumer Duty mandates additional responsibilities regarding vulnerable customers, and we rise to the occasion. Rule 2A.3.16 underscores the need to consider and document the understanding of vulnerable customers. Therefore, our service ensures that product selection aligns with the needs of customers facing health conditions, major life events, low financial resilience, or limited financial knowledge. 

Research Process and Evidence: A Foundation of Trust 

We Complement’s commitment to clarity extends to the research process itself. Moreover, our research is backed by independent tools from industry leaders such as Langcat, FE Analytics, and Synaptic. The documentation produced stands on a solid foundation of evidence. 

To summarise, in a landscape where precision and compliance are non-negotiable, the We Complement Research & Due Diligence Service stands as an invaluable partner. Let us unravel the complexities of your centralised investment propositions and leaving behind a trail of unmistakable fingerprints that showcase each firm’s commitment to excellence and client-centric practices. 

The deadline may have passed, but the principles of consumer duty resonate deeply at We Complement. Our culture is a testament to the fact that the journey is just as crucial as the destination, with paraplanners playing a pivotal role in ensuring a safe and secure passage. While advisers decide the route, our responsibility is to identify potential foreseeable harm, contributing to a seamless and risk-free client journey.

A Closer Look at Our Impact

Consumer duty isn’t just a checkbox for us; it’s ingrained in every facet of our operations. Here’s a closer look at how the We Complement Client Management Service is making a difference for our partner firms, subtly enhancing their ability to navigate the intricacies of consumer duty.

Client Segmentation: Tailored Experiences

One area where we shine is in helping firms create and refine client segments along with their associated charging approaches. By documenting the services provided and the corresponding value for each charge, we ensure transparency and clarity. Regular testing of the charging model guarantees that time and costs remain accurate. The creation of customer journeys for each client segment is a strategic move, allowing firms to fine-tune the client experience based on their unique needs and expectations.

Back Office Systems: Capturing the Intangible

Our commitment to consumer duty is supported by a dedication to evaluating back-office systems. In light of the FCA’s Financial Lives 2022 survey, which revealed that for 4.9 million adults relying on provider communications, the information failed to assist them in decision-making. Especially affecting those with characteristics of vulnerability. We meticulously ensure that your chosen systems align with Consumer Duty’s requirements, capturing every aspect of the advice dialogue. Partner firms benefit from our expertise in utilising third-party tools and back-office systems, emphasising their seamless integration into client journeys and the significant value they contribute to the advice process.

Client Portal: Elevating Engagement

Surprisingly, many of our partner firms underutilise the client portal within their client base. Aligning with Consumer Duty, we guide firms in using software to effectively monitor communications. By promoting the client portal, we empower firms to establish secure, straightforward engagement channels. We create a scenario in which we seamlessly store a suitability letter in the client record, share it through the portal, and follow up with an automated email that invites the client to digitally sign it with a single click. Our Client Management Service has assisted in transforming this process, making document sharing secure, efficient, and client-friendly.

Prioritising Evidence: A Key Imperative

In the era of Consumer Duty, the capture and documentation of evidence are paramount. We emphasise the need for firms to invest time in this process. Ensuring that critical information is readily accessible when needed. This proactive approach not only aligns with regulatory requirements but also establishes a foundation of trust and transparency.

Your Journey, Our Support

Navigating the intricacies of Consumer Duty may seem daunting however, you don’t have to go it alone. We’re here to help firms actively weave consumer duty into their cultural fabric. Our Client Management Service aims to be your partner in this journey, offering active support and expertise.

If you’re ready to enhance your approach to consumer duty, reach out to us online or call 01472 728 030. Let’s embark on this journey together, ensuring that your systems not only comply with regulations but also elevate the overall adviser and client experience.

Outsourced paraplanning. An often mistaken role, seen by some as a mere stepping stone into the financial planning and the financial services industry. A common perception challenge. We believe there is a hidden gem of talent waiting to excel in outsourced paraplanning who are often unaware of its existence. Here lies an opportunity for financial planners and financial advisers to change the narrative and shine a light on the importance of paraplanning.

Discover how promoting paraplanning can benefit your financial practice:

Attracting the Right Talent for the Right Reasons:

By championing and redefining paraplanning, you create a magnet for individuals inclined toward the technical aspects of financial advice. In fact, those naturally attuned to the role’s intricacies can significantly enhance your team. While paraplanners that move over to financial advice can excel in interpersonal skills, bringing in individuals with a keen eye for detail ensures more accurate suitability reports. This, in turn, fortifies your recommendations, safeguarding your firm against complaints and upholding its reputation.

Fostering Long-Term Careers in Paraplanning:

Educating those outside the financial sector about outsourced paraplanning opens the door to individuals viewing it as a viable long-term career. This influx of committed professionals translates to elevated service levels and continuous personal development within the profession. The result is a cohort of highly skilled individuals armed with extensive knowledge, enhancing your firm’s ability to deliver excellence to clients. This, in turn, builds trust and reduces the likelihood of future complaints while increasing the potential for future business.

Elevating Client Experience through Paraplanning Expertise:

Beyond internal benefits, promoting and redefining paraplanning contributes to an enhanced client experience. With specialised individuals dedicated to the technical aspects, firms can deliver more robust, well-informed advice. Basically, this not only builds client trust but also positions the firm as a hub of comprehensive financial expertise.

Navigating Industry Evolution with Paraplanning Prowess:

In a rapidly evolving financial landscape, outsourced paraplanning can act as the compass. Firms like We Complement guide advisers through regulatory changes, market shifts, and technological advancements. Integrating paraplanning as a cornerstone profession ensures adaptability and resilience. This then means that firms are ready for the challenges and opportunities that lie ahead.

Scottish Widows Paraplanner Survey Insights:

Recent statistics from a Scottish Widows Paraplanner survey provide a nuanced perspective.

https://platform.scottishwidows.co.uk/adviser-gateway/paraplanner-room/the-connected-paraplanner/?accept=advisor

Despite the assumption that paraplanning serves merely as a stepping stone, only 18% of paraplanners can see themselves moving on to a financial adviser role in the next five years. Instead, an overwhelming 69% plan to progress within their current role or take on leadership positions.

This shift is not merely an internal perception. A robust 70% of paraplanners believe that their contribution is viewed as ‘essential’ by the advisers they work with, dispelling the notion of a purely administrative role (14%). Furthermore, 81% of paraplanners believe that their firms now value paraplanning more highly than in the past.

Subsequently these statistics underscore a changing narrative within the landscape of outsourced paraplanning, supporting the importance of recognising and nurturing paraplanning as a distinguished profession.

Tony’s Insights:

Paraplanning, the role of evidencing suitability and undertaking financial planning analysis, is a key responsibility of all financial advisers. Similarly, remember you are the ones putting your names to the advice and your reputations on the line! Yes it is common for this to be delegated, in-house or outsourced, but in the end every adviser should understand the process and be able to ensure these tasks have been performed correctly. Which is why I believe every financial adviser should undertake at least two years as a financial planning analyst (a much better title than paraplanner in my view) before deciding to move into an advisory role.

Top Tip:

Consider redefining paraplanning roles as a foundation position for all employees involved in your financial planning delivery. The foundation you build today shapes the excellence you deliver tomorrow.

We Complement champions outsourced Paraplanning as a rewarding and professional career path. Get in touch to explore how a company embracing paraplanning as a point of pride can benefit you. Reach out to us online or call 01472 728 030.

In the intricate world of retirement planning, the ‘Lifestyle’ thread weaves together abundance and prosperity. As financial planners, our duty extends beyond income models; it involves understanding and creating a life that thrives even after the final paycheque. Additionally, considering the biblical verse, “I have come that you might have life, and have it more abundantly,” urges us to embrace a rich existence free from work constraints. Moreover, retirement isn’t just a twilight; it should be vibrant with lived dreams and fulfilled aspirations.

The journey to an abundant retirement starts with envisioning. First and foremost, it’s about encouraging clients to look beyond numbers and focus on the quality of life. What passions do they want to pursue, places they dream of visiting, and experiences they aspire to? Capturing these desires forms the foundation of a comprehensive retirement plan.

Cash Flow Modelling: Blueprint for Abundance
To delve into specifics, a robust cash flow forecast serves as the initial plan for retirement. It goes beyond the usual budget, meticulously scrutinising the details of expected spending. Additionally, effective cash flow modelling becomes the canvas where clients can paint their visions of a full life. This process clarifies the financial needs for a lifestyle full of meaningful activities and pursuits.

Actual Expenditures: Unveiling Realities
To bridge the gap between dreams and reality, an audit of actual spending is essential. Beyond that, reviewing bank statements and credit card transactions reveals the true nature of spending patterns. It’s an eye-opening experience that challenges assumptions about post-retirement spending. Adapting to real spending behaviours is crucial for financial plans to work within a client’s lifestyle.

Navigating the Stages of Retirement
Understanding that retirement unfolds in stages—Active, Passive, Assisted, Supported—is crucial. Each stage has unique challenges and opportunities. Specifically, during the Active phase, there may be travel and experiences, while the Passive stage sees a subtle shift in spending. Furthermore, the Assisted phase may need increased financial provisions, and the Supported phase may require healthcare provisions. Tailoring financial strategies to these stages ensures a smooth transition and sustainable wealth.

Tailoring Strategies to Individual Objectives
Recognising that each client has clear objectives is central to planning an abundant retirement. Some prioritise luxury and indulgence, seeking a retirement adorned with lavish experiences. On the contrary, others focus on sustainability, wanting a retirement that ensures longevity without compromising financial security. There are a number of longevity ‘calculators’ available to advisers available from the ONS and a number of UK insurance companies. Although the calculators available from insurance companies, such as the one available from Aviva, are still relatively basic, it does allow a wider discussion regarding health and lifestyle to take place. Aligning financial strategies with these preferences ensures the plan resonates with the client’s vision of abundance.

Embracing Lifestyle Management Tools
Moving forward, managing lifestyle spending demands precision and discipline. Introducing lifestyle management tools, such as dedicated cards for discretionary spending, provides a tangible means of tracking expenses. This proactive approach avoids post-retirement financial surprises and aligns spending habits with the primary vision of a plentiful life.

Conclusion: Beyond Financial Security
In conclusion, our role as financial planners extends beyond financial security. Notably, retirement planning involves nurturing a life of abundance and prosperity. By connecting financial expertise with a keen understanding of personal aspirations, we become facilitators of a retirement that goes beyond mere existence. It’s about empowering clients to live life more abundantly, just as the biblical verse encourages. Let’s embark on this journey together—where financial planning becomes the brushstroke, and an abundant retirement is the masterpiece.

So, let’s not confine retirement planning to numbers and spreadsheets. Instead, let’s embark on a journey of imagining, planning, and living an abundant and successful retirement. Because, in the end, our purpose is not just financial security—it’s the artistry of a life well-lived.

As a financial adviser, recognising and embracing neurodiversity is a crucial aspect of ensuring that suitability reports truly meet the needs of all clients.

Neurodiversity – the contraction of Neurological Diversity – is a concept that recognises and, most importantly, celebrates the natural variations in human neurological functioning, such as the way we process information, how we interact with the world around us and how we learn.

Neurodiversity encompasses conditions such as autism, ADHD, dyslexia, dyspraxia (now referred to as developmental co-ordination disorder or DCD), dyscalculia and other neurological differences, each of which brings its own unique set of strengths and challenges to the table.

Now, although we consider and make additional provisions for vulnerability as standard, this is dealt with on a case by case basis and we tend to associate it with the elderly or physically impaired clients. For example, for clients whose eyesight is poor, we would produce a suitability report in larger font without thinking twice.

Neurodiversity, however, isn’t something that is often considered during the fact finding process and indeed, many people may not even feel the need or wish to disclose it. Yet it is estimated that as many as 10% of clients could be dyslexic, which is a significant proportion of a firm’s client base to which an adviser’s recommendations is potentially inaccessible in the current format.

So what can we do to be more inclusive and level the playing-field?

When it comes to crafting suitability reports, a neurodiverse approach involves acknowledging and accommodating diverse cognitive styles. By doing so, financial advisers can create reports that resonate with clients across the neurological spectrum, ultimately enhancing communication and understanding.

One key aspect of neurodiversity in suitability reports is the recognition that there is no one-size-fits-all approach. Traditional reports might rely heavily on complex language and jargon, potentially alienating clients who process information differently. Neurodiverse reports, on the other hand, aim for clarity and inclusivity. This might involve using plain language, visual aids, or even alternative formats such as audio summaries to ensure that information is accessible to all.

Consider a client with ADHD, for instance. They may struggle with lengthy written reports but could excel in absorbing information through concise, visually engaging content. By incorporating diverse communication methods, advisers can cater to various cognitive preferences, ensuring that clients receive information in a format that aligns with their strengths.

Moreover, a neurodiverse approach emphasises the importance of active listening and understanding individual client needs. Financial advisers may need to adapt their communication style based on the client’s preferences, whether it’s written communication, face-to-face meetings, or a combination of both. This flexibility is key to building a trusting relationship and fostering open communication.

In the realm of neurodiversity, it’s also crucial to challenge stereotypes and misconceptions. Autistic individuals, for instance, are often highly analytical and detail-oriented, qualities that can be advantageous in financial planning. Recognising and harnessing these strengths can lead to more effective and tailored suitability reports.

Additionally, a neurodiverse approach promotes a broader perspective on risk tolerance and financial goals. Neurodivergent individuals may have unique financial aspirations or concerns that traditional frameworks might overlook. By engaging in open and inclusive discussions, advisers can gain valuable insights into the client’s financial mindset, ensuring that suitability reports align with their specific needs and objectives.

Implementing a neurodiverse approach requires ongoing education and awareness within the financial industry. Training programs that focus on neurodiversity can help advisers develop a deeper understanding of different cognitive styles and foster a more inclusive environment. By promoting a culture of acceptance and learning, financial institutions can position themselves at the forefront of client-centric services.

In conclusion, neurodiversity and suitability reports go hand in hand in creating a more inclusive and effective financial planning experience. By embracing diverse communication methods, actively listening to individual needs, challenging stereotypes, and fostering a culture of continuous learning, financial advisers can ensure that their services cater to clients across the neurological spectrum. In a world where diversity is celebrated, a neurodiverse approach isn’t just a best practice- it’s a fundamental step towards a more equitable and accessible financial landscape.

How can We Complement your journey to success as a regulated financial adviser? To answer that question, I turned to Chat GPT, which provided an insightful definition: “To complement means to enhance, complete, or improve something by adding a contrasting or harmonious element that works well with it. It implies a sense of balance or synergy between two or more components, where each part contributes to the overall effectiveness or aesthetic appeal of the whole.”

At We Complement, our promise is to develop and deliver effective solutions and services that empower forward-thinking financial planners to thrive in a consumer-focused regulatory environment.

We firmly believe that this shift in focus is not just a regulatory requirement but a fundamental principle that should be embraced wholeheartedly. We are here to assist financial planners in aligning their practices with the Consumer Duty by offering comprehensive solutions and services.

The Four Pillars of We Complement

At the heart of We Complement are the four pillars of our services, each strategically designed to align seamlessly with the principles of the Consumer Duty:

 Client Management Service

Are you a financial adviser looking to grow your business but finding the process overwhelming? Do you sometimes struggle to keep up with the annual review process? We Complement offers a solution. Our process consulting team is here to support you, ensuring that your interactions with clients, from the initial meeting arrangement to issuing reports and implementing recommendations, are comprehensive, fair, and transparent. By partnering with us, you can be confident that you are serving your clients’ best interests while maintaining regulatory compliance.

 Investment Research & Due Diligence

Staying up-to-date and providing well-informed investment advice is crucial. We can create a new bespoke pack for you, including a Central Investment Proposition, DFM, Due Diligence Reports, and Central Retirement Proposition. We can also assess and update your current offerings. With We Complement by your side, you can be certain that your investment recommendations are both transparent and in line with Consumer Duty’s commitment to serving clients’ best interests.

Suitability Reports & Templates

The Consumer Duty places a significant emphasis on the importance of transparency and fairness. We prioritise aligning our suitability report services and solutions with your unique needs and objectives. Our comprehensive suitability report templates go beyond mere compliance checkboxes. They are well-structured, adaptable, and consistent, covering all crucial aspects while allowing room for customisation.

We Complement goes beyond the standard to provide comprehensive paraplanning services. Our team of experienced analysts will handle the back-end details of your financial planning process, from in-depth research to comprehensive report writing. This allows you time to focus on what you do best providing personalised advice and building long lasting relationships with your clients.

Back Office Consulting

The efficiency, scalability, and technology integration of your back office operations are critical components of your firm’s success. At We Complement, we understand the importance of increasing efficiencies, maintaining compliance, reducing costs, and enabling better data access and analysis. We recognise that each of these factors contributes to the seamless operation and success of any financial advisory firm large or small. We offer impartial advice on selecting the right back office system tailored to your specific needs, ensuring that your operations align with Consumer Duty.

The We Complement Promise

Our promise at We Complement is to empower forward-thinking financial planners to flourish in a consumer-focused regulatory environment. We are dedicated to helping you provide the best possible financial advice and services to your clients while maintaining transparency, fairness, and compliance with Consumer Duty. We’re not just a service provider; we’re your trusted partner in this transformative journey. With We Complement, you can enhance your business, complete your service offerings, and improve your client relationships, all while staying true to the principles of Consumer Duty. We would love for you to come on this journey with us, where serving the client’s best interests is not just a regulatory requirement, but a fundamental philosophy that drives our industry forward. Together, we can redefine financial advisory and create a brighter future for all.

Our team has over 50 years of combined financial planning experience, with a big portion of that spent on research and report writing. In that time, we’ve picked up lots of tips and tricks on how to make the research and report writing process easier and more efficient, and this article will share some of our advice.

1.       Work Smart, Not Hard

One of the great things about working in financial planning is that the learning never stops. Even if you somehow think you know everything there is to know, you can guarantee that there’s a change in legislature waiting around the corner to bring you back down to earth. While this keeps things interesting, staying on top of changes can sometimes seem never-ending, and knowledge relating to some areas of financial planning can grow fuzzy over time without the chance to put it into practice.

With this in mind, a key aim for those working in financial planning should not be just gathering technical knowledge (though of course that’s important too), but also knowing where to look when you need a nudge in the right direction.

Fortunately, there’s a whole range of helpful material online. I recommend creating a catalogue of this information so that you can easily return to it in future. To get you started, here are some of my favourite and most used tools and pages:

– Quilter’s Tools: in particular, the Tapered Annual Allowance Calculator, Carry Forward Calculator, Chargeable Event Gains Income Tax Calculator and Scheme Specific Tax-Free Cash Calculator.

– Pru’s Tools: in particular the Tax Wrapper Comparison Tool, Bond Gain Tool, Emergency Tax Tool and Salary Sacrifice Calculator.

– Scottish Widows’ Tools

–  Royal London Technical Centre

– Quilter’s guidance on bonds

– Pru’s Technical Content

–  abrdn Techzone

Have I missed anything? Please share with us your favourite technical content or tools.

2.       Initial File Reviews

Spending a little bit of time doing a thorough review of any new case before you really get to work can save a lot of time in the long run.

It’s key to make sure you have all the information you’re going to need to complete the case and gives you the opportunity to spot any potential problems that might rear their heads later on. It’s much better to identify a problem early on than halfway through a case – think a pension consolidation exercise where it turns out that some of the existing plans have safeguarded benefits that weren’t made very clear in the policy documents!

3.       Collaborate

It’s all too easy to go down a Google rabbit hole when looking for information, but reaching out to others in the financial planning community first could save you a lot of time.

I’m lucky to be able to pick the brains of all my knowledgeable colleagues at We Complement, but I understand that not everyone has that luxury. Fortunately, there are lots of helpful groups available for paraplanners and others who work in financial planning, including on LinkedIn and WhatsApp.

In particular, the Big Tent at the Paraplanners’ Assembly and the M&G Wealth Technical Group are really useful resources where you can benefit from the collective brainpower of financial planning minds all over the country.

4.       Templates

I’m sure we all know what it’s like to work with templates that need a lot of tweaking (think adding in various paragraphs that are scattered across different documents, remembering to remove certain wording that isn’t relevant to some cases, or wrestling with formatting) before you even get around to personalising them for the client. Relying on memory to make sure you remember to add or remove content is not only an inefficient use of time but is almost certain to catch you out on a bad day!

Make sure you’re happy with the templates you’re using and how you use them. It can be a time-consuming task, but sorting out your templates and making sure that you have a slick suite of templates that suits your needs can save a lot of time in the future.

Ideally, you should have a range of easy-to-use templates available to you that need minimal tweaking, so when the research stage is over and you’re ready to crack on with the report you can get started without any fuss.

Have I missed anything? Please share with us your favourite technical content, tools or tricks.

Thanks for reading!

I have been in financial services for over 30 years and ‘attitude to risk’ (ATR) assessments, of some sort or other, have always been a thing during that period. Admittedly 30 years ago it was a tick box and every one was usually ‘balanced’. That said, I do not think the ‘sophisticated’ questionnaires in use today are much better at ‘assessing’ people’s real ATR. In fact I am not sure every planner really stops and considers what ATR is!

In my view ATR assessments are still assessing the wrong thing. We should be getting under the bonnet and questioning and challenging a consumers ability to withstand volatility. Or, as Twin 1 puts it, ‘the degree of risk that an investor is willing to endure given the volatility in the value of an investment.’

Prospect Theory 2 (or loss aversion theory) claims that we hate loss twice as much as we love gains. I am not sure if it is always true for everyone but in my experience I never received panicked calls from clients when their portfolio went up more than they expected!

Financial planners correctly ensure that consumers understand that all risk investments should be considered as medium to long term commitments (five years plus). And, in the calm before the storm, the majority of consumers agree. The problem is though we don’t live in years, we live and experience our lives day by day. As such, once the investment storms are raging, as they often do, customers feel the pain and experience natural fears of bigger losses. Sadly, we are not always logical beings and our emotions can overwhelm the strongest of us.

When exploring tolerance to volatility I believe we should be exposing consumers to actual real data that shows the largest losses that a portfolio their ATR is deemed suitable for. Many will be surprised to see potential losses in the 30+% range are common place for most portfolios. Even ‘safe’ bond investments, such as UK long term Gilts, suffered losses in this range during 2022.

Planners should definitely be on the lookout for evidence of ‘risk propensity’. The tendency to choose higher risk options with a low chance of success. Risk perception, especially following sustained increases in investment markets, can also skew the results of a ATR assessment. Likewise periods of investment falls can increase consumer nervousness (putting an end to any idea that any of the ATR assessments are really reliable).

Risk capacity and risk knowledge are obviously vital components to consider, ability to take on risk and risk literacy. However, one of the biggest determinations of ability to cope with investment volatility is evidence of previously doing so.

One of my biggest suggestion, other than searching for previous evidence of holding during volatile periods, is to use actual monetary values when discussing potential losses as opposed to percentages. Confronting a client with a graphic showing the consumer that their £100,000 could be shown to be worth £70,000 or less at some point during the next 12 months due to volatility will focus their mind to that fact that investment losses are only real when they are crystallised.