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.

In this week’s newsletter, we’ll discuss how to write consumer duty-focused suitability letters that simplify complex information and support positive outcomes for your customers. We’ll also provide helpful tips and best practices from the We  Complement team. Sharing the knowledge you need to create consumer duty focused suitability letters that make a difference.

What are consumer focused letters?

Consumer focused letters are suitability letters that prioritise the client’s understanding and outcome over compliance requirements. These letters are designed to communicate complex financial advice in a way that is clear and concise to the client. Consumer focused letters should include a summary of the advice provided, the client’s goals and objectives, the risks and benefits associated with the recommended investments, and the reasoning behind the recommendation. Additionally, these letters should address any concerns or questions that the client may have and provide guidance on how to proceed with the recommended investments. Overall, consumer focused letters should prioritise client education and support outcomes that are in line with the client’s financial goals and objectives.

What are the benefits of writing consumer focused letters?

There are several benefits, with the main one being increased customer understanding. By using clear and concise language and linking recommendations back to the client’s objectives, customers will be able to easily understand why the recommended product or service is suitable for them. This will not only increase their confidence in your advice but also lead to better outcomes for the customer.

Another benefit is the reassurance that they will meet regulatory requirements. The Financial Conduct Authority (FCA) place a strong emphasis on ensuring that customers are treated fairly and receive advice that is suitable for their needs. By writing letters that are customer-focused and demonstrate a thorough understanding of the customer’s needs, firms can reduce the risk of regulatory action being taken against them.

Finally, by simplifying suitability letters and making them more engaging, firms can enhance their reputation and build trust with customers. A well-written letter that demonstrates a deep understanding of the customer’s needs and objectives can help to differentiate a firm from its competitors and foster long-term relationships with customers.

When crafting a suitability letter with a consumer duty focus, it’s important to ensure that it contains all the necessary elements to provide a clear and thorough understanding of the recommendation being made. Here’s what should be included:

1. A clear statement of the client’s goals and priorities.
2. A summary of their current situation, including existing investments.
3. Explanation of the reasoning behind the recommendation and how it addresses the client’s needs and objectives, including associated risks.
4. Advantages and disadvantages of the recommended product, to provide a balanced view.
5. Explanation of the implications of any focused advice.
6. If an existing plan is being replaced, a clear comparison of the new plan versus the old plan.
7. A clear explanation of costs, charges, and potential penalties.
8. Explanation of the tax implications for the client.
9. A ‘further details’ section to include specific client information.

At We Complement we incorporate all the above into the templates we use day in day out, and the templates we create for our partner firms to use internally. If you would like us to design a suitability report template that can represent you and your firm and be engaging for your clients or update your existing templates to ensure they’re compliant, contact us online or by calling 01472 728 030.

You may have already read our previous blog explaining why it’s so important for advisers and planners to complete fact-finds in full and have an effective CIP.  As well as protecting your business from successful complaints and a loss of reputation, it could help your business grow by identifying opportunities you would have otherwise missed. You, should, however, adopt a Central Advice Framework. As a fully completed fact-find isn’t the only way to generate referrals and make your business more robust against complaints.

A Central Advice Framework works like a checklist to ensure you collect all the relevant hard and soft facts from the client and consider every option when making a recommendation. Read on to learn five powerful ways this could help enhance your business’s reputation if you’re a multi-adviser practice, and even make it prosper.

1. Reduces business risk

A Central Advice Framework puts systems in place that verify that you have taken a holistic view of your client’s situation. It ensures you have considered every aspect of their circumstances in the rationale behind your recommendation.

It verifies that you’ve engaged in joined-up thinking and have considered all the options for your client. While this makes any solution you provide safer and less likely to be challenged, it also means your recommendation is more likely to be the right one.

This will mean happier clients, which in turn could mean referrals and new future business.

2. Ensures you miss nothing

Because the Central Advice Framework is a checklist, you’ll have peace of mind that you have gathered and recorded every relevant hard and soft fact. For example, this might be the client’s capital needs as well as their income needs, or past investment experience and how this has shaped their views on risk.

This information is crucial when it’s passed on to a paraplanner, as they can use it to create a clear and accurate suitability letter that will stand up to inspection.

3. Ensures you ask the right questions.

This dovetails into the previous point, as the Central Advice Framework checklist makes sure you do not miss important soft facts that would otherwise result in you making the wrong recommendation. This provides you with peace of mind that your recommendation is less likely to be challenged later on. Making it more likely to be approved by your compliance unit.

4. Improves business efficiency

As the Central Advice Framework requires you to gather all the information needed by your paraplanners, they can produce a clear and compliant suitability letter more quickly. This is because the paraplanners will not need to chase you for missing information or clarification on certain points.

As a result, your compliance team are likely to approve your recommendation more quickly. Your client receives a more efficient service, and you could also have your presentation meeting and write the business sooner.

5. Assists with compliance

A Central Advice Framework ensures your business meets the 11 FCA core business principles. In particular, makes sure that “customers’ interests” are put first. In addition, it also helps you meet the PROD guidelines, which require you demonstrate that your business has a robust, reliable, and repeatable processes.

Get in touch

In reality, there are 110 things you need to remember to ensure that every client outcome is compliant. By developing a simple checklist to guide you through your client outcome, you can ensure that nothing slips through the net, and it could also improve efficiency.

We believe a financial advice business should have its own bespoke process for the reasons outlined above. That’s why we have prepared many for clients over the years and have extensive experience that puts us ahead of the crowd.

If you would like to learn more about Central Advice Framework, read “A framework for delivering robust, repeatable and reliable financial planning”. A very informative white paper written by our Managing Director Tony Slimmings.

If you would like to discuss how we could use our expertise to help you create a Central Advice Frameworkand relevant documents, please contact us online or by calling 01472 728 030.

Running a financial planning practice can be a lot of fun. But it can also be a lot of late nights, hard work and stress. So, no matter how confident you are in running your business, at some point you will feel stuck, like some pieces of the puzzle just aren’t fitting right, you don’t know which piece is causing the issue, and you don’t have the time or the ability to take a step back and address the issues objectively.

Most people will hang in there and just accept that it’s all part of the job – especially now in a time with constant change and challenges. But, these feelings of being stuck can leave you feeling worried, anxious and irritable. In general, causing your stress levels to hit the roof.

If you’re running a financial planning practice, you probably know this feeling well. You’re running on all cylinders trying to build your business. You have a never ending mental to-do list that grows longer every day. 24 hours is not enough, sleep is for wimps right?

Sound familiar? Is your brain a mush with too many ideas, too many deadlines, and not enough time to fit it all in? You’re certainly not alone. Fortunately, there are steps you can take to ensure you’re caring for yourself and your business at the same time.

Write It Down

One reason you might be overwhelmed is that your brain feels overloaded with information. You might be mentally juggling a long list of tasks that breed to those negative thoughts I mentioned earlier.

Get a piece of paper and make a list of everything that you need to get done. Don’t try to evaluate or organize every task, you can do that later. For now, just get those tasks out of your head and onto paper.

This technique can help to reduce the feeling of overwhelm. Your brain doesn’t have to deal with all the competing tasks and deadlines. You’ve cleared your mental block and have a tangible representation of what’s required.

It’s about the journey not the destination

It’s great to the end goal in sight, maybe that’s increasing revenue, increasing your client base or simply writing more business. But problems arise when you let the goals get in the way. When it comes to sitting down and actually completing tasks, all the roadblocks that could hinder your progress raise their ugly heads and mark their territory. What should have been a simple task, is now weighing you down.

Instead, stop thinking about how your simple task is going to help you write thousands of pounds worth of business, you should focus on the process of the task itself.

Break down the projects and then schedule the time in

Breaking down massive projects is a great way to reduce the overwhelm that builds from massive projects and tight deadlines.

Let’s use your Consumer duty implementation plan and CIP document as examples. The FCA has said they do not view these plans as being set in stone, but rather expect firms to develop them between now and the implementation date.

First, identify milestones for the plan, this could be determining good outcomes, training and identifying relevant data and metrics. Then go one further and think about the steps involved in reaching these milestones. Then, just as you schedule meetings with clients, schedule specific times for these tasks. This will ensure you stay on track with completion and are not overwhelmed at the last minute.

Finally, let’s get real.

The solutions above are all short term fixes that aren’t going to the root of the problem. If you’re feeling consumed by the overwhelm lets identify the issue at the source. It’s about working smarter not harder.

You’re an experienced adviser, but maybe you’ve never ran a financial planning practice. Or you’re running a business but it’s not going right, you’re not getting the clients you expected, your worried about finances, using the right suitability templates, or getting the propositions in place. It’s a struggle navigating the ever increasing complexities of running a financial planning firm, and maybe you need a little extra help, someone to offer paraplanning and coaching support, as well as reassurance and guidance. Maybe you need an outsider to take an objective view of the situation?

If this all sounds very interesting, email or call us on 01472 728 030. Let’s have a chat to see how we can get you back to loving what you do, and get a good night’s sleep to boot.

To many people, Six Sigma is ‘something done in manufacturing’. To me having spent six months obtaining my Black Belt and reviewing the processes within my own business, At We Complement we totally disagree.

Although Six Sigma has its roots in the 1980’s it has been applied successfully within the services sector for decades. Banks, Universities, Hospitals, and local governments are some of the diverse places that have benefitted from Six Sigma. There is even a book written in 2003 by Michael L George dedicated to the topic.

It is not only large companies, Six Sigma can be introduced into small businesses to improve processes. Including growing financial planning practices.

Six Sigma ranks among the foremost methodologies for making business processes more effective and efficient. In addition to establishing a culture dedicated to continuous process improvement, Six Sigma offers tools and techniques that reduce variance, eliminate defects and help identify the root causes of errors, allowing organizations to create better products and services for consumers.

People develop expertise in Six Sigma by earning belts at each level of accomplishment. These include White Belts, Yellow Belts, Green Belts, Black Belts, and Master Black Belts.

Does it work? Motorola reported in 2006 that the company had saved $17 billion using Six Sigma.

Experts credit Shewhart with first developing the idea that any part of the process that deviates three sigma from the mean requires improvement. One sigma is one standard deviation.

The Six Sigma methodology calls for bringing operations to a “Six Sigma” level, which essentially means 3.4 defects for every one million opportunities. The goal is to use continuous process improvement and refine processes until they produce stable and predictable results.

Six Sigma is a data-driven methodology that provides tools and techniques to define and evaluate each step of a process. It provides methods to improve efficiencies in a business structure, improve the quality of the process and increase the bottom-line profit.

A key component of a successful Six Sigma implementation is buy-in and support from executives. The methodology does not work as well when the entire organization has not bought in.

Six Sigma uses a DMAIC methodology for improving existing business processes. The letters stand for:

• Define the problem and the project goals
• Measure in detail the various aspects of the current process
• Analyze data to, among other things, find the root defects in a process
• Improve the process
• Control how the process is done in the future

If you are creating new processes then the DMADV methodology is used:

• Define the project goals
• Measure critical components of the process and the product capabilities
• Analyze the data and develop various designs for the process, eventually picking the best one
• Design and test details of the process
• Verify the design by running simulations and a pilot program, and then handing over the process to the client

The other big methodology is the Five Whys. This is a method that uses questions (typically five) to get to the root cause of a problem. The method is simple: simply state the final problem (the car wouldn’t start, I was late to work again today) and then ask the question “why,” breaking down the issue to its root cause. In these two cases, it might be: because I didn’t maintain the car properly and because I need to leave my house earlier to get to work on time.

Six Sigma in Financial Planning?

All the Six Sigma tools and methodologies serve one purpose: to streamline business processes to produce the best products and services possible with the smallest number of defects. Its adoption by corporations around the globe is an indicator of its remarkable success in today’s business environment.

Whether you are looking to improve your complete advice processes, your annual review process, your CIP, CRP or any element of your business speak to us about how we could use Six Sigma to improve the effectiveness of your financial planning business.

I now know this methodology can be applied into financial planning practices too. Read a case study here.

Tony Slimmings – MD

When you consider your daily activities, each one is a sequence of steps that make up a process. This can be anything from getting up in the morning, making that very first morning coffee, driving to work, or searching for car insurance. Most things involve a process in some form. Process mapping is a technique that allows you to visually represent these processes, tasks, and workflows. While it might not be appealing to map out your personal routines, in a team or work environment, a process map can bring clarity to everyone involved and is likely to enhance the process itself.

By mapping out a process in detail, organisations can identify inefficiencies and bottlenecks that can then be addressed and improved using Six Sigma and other tools. It also shows that organisations can demonstrate robust internal procedures and processes and better define roles and responsibilities Additionally, process mapping can help reduce costs and improve the quality of a service or the advice provided by a firm.

The benefits are numerous. Firstly, process mapping can help organisations identify areas of waste or inefficiency. This can lead to the reallocation or redistribution of resources to areas of greater potential, thus saving time and perhaps reducing costs. Additionally, process mapping can help organisations identify areas of overlap and communication points between teams or departments and highlighting opportunities for improvement or development. By doing so, processes become more efficient and effective.

By mapping, firms can identify areas of greatest risk and then address them accordingly. This can help the reduce the risk of errors or costly mistakes of various kinds. Additionally, process mapping helps internal practices stay up-to-date with regulatory changes and industry trends. This can support maintaining a competitive advantage.

Finally, mapping can help organisations grow and increase customer satisfaction by ensuring that their processes are efficient and effective. By mapping out the process and testing it on staff that don’t work in that area, or with test clients, firms can identify areas of confusion or difficulty for customers and address them accordingly. This can help firms increase customer satisfaction and loyalty, as customers will be more likely to stay loyal to an organisation that is responsive and proactive about their needs. (I didn’t want to make this yet another consumer duty blog but it always creeps in somewhere!)

Making organisational processes more efficient and eliminating unnecessary steps is a no brainer. However, before taking any action, it’s essential to ensure that all team members are in agreement. Process maps are an excellent tool for depicting a process within a team and promoting collaboration and input from team members. By visually displaying all the steps and decision points involved in a process (including who executes them), completing a map provides a clear organisational snapshot. This snapshot can serve as a starting point for the way forward.

Our team is on hand ready to help map your way forward, giving We Complement a call is a great starting point.

Thanks to Consumer Duty, our need for efficient and streamlined operations has never been more critical. Financial advisers are constantly seeking tools that not only simplify their workflow but also enhance their overall productivity. One such tool that has gained significant traction in recent years is Intelliflo Office. A comprehensive practice management system designed to meet the unique needs of financial professionals. So it would seem that for many financial advisers, this is the preferred back office product. Perhaps this is no surprise as according to the market statement, Intellifo’s services are used by around 30% of the advi.ce profession.

We are not connected to Intelliflo office in any way and will always select a back office system that is the right one for our clients. We just understand that so many firms are not getting the best out of their Intelliflo office licences. The question that often arises is, “Are you truly leveraging your Intelliflo Office licence to its full potential?”

Yes keeping in touch with your clients on a regular basis is a great thing to do, however, as you will no doubt know, the Financial Conduct Authority (FCA) also requires advisers who supply investment advice to do annual planning reviews in a formal way. Specifically, you should “agree with a client whether a periodic assessment of suitability will be performed. If periodic assessment is to be performed it must be at least annually and the continued suitability confirmed in writing”.

These annual planning reviews (which we can help with, more of which anon), are a valuable opportunity to have a really in-depth check-in with your client – and the best ones focus on the person, as well as the products.

So, while it is possible to include everything on one page, at We Complement we believe APRs should become a document of your client’s annual financial planning journey – not just a snapshot.

For example, while obviously you need to include details of all current investments, their performance and any recommendations you would make, a good APR will also appraise your customer’s circumstances – what are they investing for, how they are planning on making it work and any worries they may have.

Clearly, this is considerably more time consuming for an IFA – which is where the We Complement team come in.

We will work with you to develop a document which is personal to each client, while also ensuring it truly represents your brand. We will undertake all necessary research to emphasise the value you have provided during the previous 12 months – and how you will continue to do so in the future.

We can also access all the necessary information on your system, such as products, planning and risk profile, and add these to the APR document, giving an overall review that provides a truly detailed view of your client’s financial year.

We Complement believes that your annual planning reviews are a great opportunity to engage fully with the financial planning needs of your clients. Sending a one page summary just seems to be such a wasted opportunity not to take the chance to engage positively with them.

Once we have all the details we need, we go ahead and prepare the review, and typically produce reports in five to seven working days.

For more information about our annual review offering and complementary offerings, and how they can benefit you and your clients, please get in touch.

What Is Outsourced Paraplanning and Why Do Advisers Use It?

Outsourced paraplanning is when financial advisers use external paraplanning support instead of hiring in-house. This allows firms to manage workload more efficiently, improve turnaround times and maintain consistent, high-quality advice delivery.

In this guide, we explain what outsourced paraplanning is, how it works and why more financial advisers are choosing to outsource paraplanning support.

If you are looking for outsourced paraplanning services, you can learn more about how we support financial advisers here.

What Does Outsourced Paraplanning Include?

Outsourced paraplanning typically covers a range of technical and administrative support tasks that sit behind the advice process. This allows advisers to focus more on client relationships and less on the time-intensive work involved in preparing recommendations.

Common areas of support include:

• Suitability report writing
• Technical research and analysis
• Product comparisons and recommendations
• Case preparation and documentation
• Ongoing support across the advice process

Why Do Financial Advisers Outsource Paraplanning?

Financial advisers outsource paraplanning to improve efficiency, manage capacity and maintain a consistent standard of advice delivery.

Key reasons include:

• Increasing capacity without hiring additional staff
• Reducing bottlenecks in the advice process
• Improving turnaround times on client work
• Maintaining consistent, high-quality documentation
• Accessing experienced paraplanning support when needed

In-House vs Outsourced Paraplanning

Many firms choose between building an in-house paraplanning team or using outsourced support. Both approaches have their place, but outsourced paraplanning offers greater flexibility for firms that want to scale without increasing fixed costs.

In-house paraplanning can provide full control and integration, but it often requires significant investment in recruitment, training and management. Outsourced paraplanning, on the other hand, allows firms to access experienced support as needed, without the long-term commitment.

Is Outsourced Paraplanning Right for Your Firm?

Outsourced paraplanning can be a good fit for firms that are experiencing growth, dealing with capacity constraints or looking to improve operational efficiency.

It is particularly useful for:

• Firms with inconsistent workloads
• Advisers who want to spend more time with clients
• Businesses looking to scale without increasing headcount
• Teams that need additional technical support

If you are considering outsourced paraplanning services and want to understand how this could work for your firm, you can find more about our approach here.