Connected 65

Connected 65

connected A Tenet Group Publication Issue 65 Autumn 2017

SPECIAL FEATURES New protection panel - Plus a reminder of all the other enhanced protection support Recommend advisers to Tenet and win, win, win… Could your clients benefit from the new Tenet Platform?

OTHER FEATURES Latest events including Masterclasses, PDMs and Webinars

TENET COMMUNITY A double celebration for Helen – and Jayne…

Miracle man who ‘died’ at his first park run returns to finish it Charity trek to Machu Picchu in Peru

How to successfully manage investment bond withdrawals Are you missing an opportunity to get an independent TVAS report?

Keeping the spotlight on the regulatory landscape

The Latest Provider Support Offering insight into market conditions and adviser opportunities

Welcome - 3

CONTENTS… what’s in this issue

Editor’s Foreword

4 Keeping the spotlight on the regulatory landscape If we thought the regulator would take its foot off the pedal over the summer months, then we were set for disappointment! With the pensions market under review again, platforms coming under the microscope and MiFID II coming into focus, the holiday season already feels like a dim and distant memory! 6 How to successfully manage investment bond withdrawals The essential differences between partial and segment surrenders 8 Events - all the latest from your event team Your chance to catch up on all our

Hello and a warm welcome to the Autumn issue of connected. Our headline article from Helen Ball, Group Distribution & Development Director, highlights that the regulator continues to keep the spotlight on a number of key areas; from pension transfers, to platforms and MIFID II. Our consistent and ongoing activity in the regulatory arena ensures that we keep our advisers informed and one step ahead of the impacts of changes made. See Helen’s article on page 4 for the full roundup of the regulatory landscape. With the introduction of a new simplified protection panel in July providing enhanced terms, choice and quoting process, we highlight the features and changes this brought about, especially as action was required for those on the old Pick Six panel. We also remind you of all the enhanced protection support available, so read more on these areas on pages 12 and 13. Enclosed in this issue you will find an insert brought to you by OneFamily. Their leaflet ‘Lifetime mortgages that don’t have to last a lifetime’ demonstrates that customers in retirement can be looked at in three stages, which means a range of features are offered with their lifetime mortgages. Take a look at the insert for the full details. Also in this issue Do you have an adviser friend, business contact or ex-colleague who is looking for their next career move or may like to join the Tenet network? Recommend advisers to Tenet and win, win, win… see page 15 for more. Our Events Team continue to work hard to provide our extensive range of events and activities to ensure you can obtain all you CPD. The final round of Masterclasses and PDMs are still available to book and don’t forget our CPD webinars – available to download and view at your convenience. We also have a feature article from Technical Services and Research looking at how to successfully manage investment bond withdrawals and from our Paraplanning Department we highlight the availability of independent TVAS reports, so we hope you find this issue an interesting read. Finally, could your clients benefit from the new Tenet Platform? Find out more on this on page 18. Enjoy what is left of Summer and I’ll be back with more in the Winter edition before we know it!

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16

CPDwebinars so far this year, plus our Masterclass events, final round of PDMs and the Adviser Forum

11 Extending the range of

discounted tools and services available to you! We have recently partnered with AssetQ, which is recognised as an essential tool for investment selection and ongoing suitability checks. But check out all the deals available – this is one of many.

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12 New protection panel

Plus a reminder of all the other enhanced protection support

14 Recommend advisers to Tenet and win, win, win… Generate additional income and a prize draw entry for every referral 15 Are you missing an opportunity to get an independent TVAS report?

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16 More than eight million

employees now auto enrolled!

Sara J Healey Marketing Consultant

18 Could your clients benefit from the new Tenet Platform?

PROVIDER SUPPORT 21 - 36 Latest News and Products

31

Contacts

Editor Sara Healey

Published quarterly by Tenet Group Limited 5 Lister Hill, Horsforth, Leeds, LS18 5AZ

Connected Magazine is for internal purposes only and is not intended as an advertisement. As a result this should not be issued in any form to clients. Not all the products in this feature are the responsibility of the Tenet Group Limited. Terms and Conditions. Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views expressed in this publication do not necessarily reflect those of the advertisers or the publishers.

Tel 0113 239 0011 Fax 0113 239 5322

Connected - a Tenet Group publication­

4 - Industry Update

Keeping the spotlight on the REGULATORY LANDSCAPE

If we thought the regulator would take its foot off the pedal over the summer months, then we were set for disappointment! With the pensions market under review again, platforms coming under the microscope and MiFID II coming into focus, the holiday season already feels like a dim and distant memory!

Advice on Pension Transfers The pensions landscape in particular is in a constant state of flux, with the latest trigger being the FCA consultation paper (CP17/16) on Advice on Pension Transfers. This attempts to modify the existing rules to take account of pension freedoms and much of what is being said makes a great deal of sense to Tenet and is in keeping with a lot of the practices we already embrace and recommend today. The paper has been widely reported and mostly welcomed, but the fact that the new rules will not make their way into a policy statement until early in 2018, is indicative of the difficult tightrope walk that the FCA is attempting to pull off by trying to ensure that clients have access to advice of a good standard and at an affordable rate, whilst aiming to avoid a repeat of the last great pension scheme review. However, one thing that is not changing is the three month window of opportunity that customers and advisers have to complete the DB transfer, in order for the pension provider’s guaranteed Cash Equivalent Transfer Value (CETV) to be honoured. At some point in the future we may see some standardisation of information that providers and trustees have to provide to customers and their advisers. This would undoubtedly streamline the existing transfer process but in the meantime, the key message is to manage customers’ expectations and where possible get ahead of the game through understanding your customers’ retirement aspirations. We will be sending in our formal response to the consultation on behalf of our appointed representatives ahead of the deadline of 21st September and will provide further details and guidance for firms in a future communication once the final rules are known.

Helen Ball Group Distribution & Development Director

So, let’s have a quick walk through the current regulatory landscape and what recent activity could mean for advisers.

Industry Update - 5

Platforms Market Study The FCA market study of platforms aims to determine if there are issues with how this market operates, asking questions such as “do these provide value for money solutions from which there is genuine client benefit” and “are there any market features which are contrary to consumer interests?” The review will look at how self-service platforms operate, and particularly where investment solutions such as model portfolios are offered, how these are promoted to investors. “We will also consider whether advisers pass the benefits of competition between platforms onto investors in the form of lower adviser and platform fees,” the FCA paper stated. The study will take some time to conclude with the interim report not due until Summer 2018, which will cover commercial relationships, platform business models, the impact of financial advisers (but excluding the suitability of platform recommendations) and consumer desires and behaviours. Directly Authorised firms may find themselves being invited to respond to an FCA request for information. It is not clear whether a response will be compulsory if received by a firm but, where this is the case, it may be that the firm will be asked about its platform selection processes and the commercial arrangements, including whether any discounts have been negotiated in favour of consumers from which they benefit. MiFID II On 3 July, the FCA published its second policy statement (PS17/14) on the UK implementation of MiFID II, the bulk of this being the handbook changes. Our Policy Team is currently going through the 1,000 page plus paper with a fine tooth comb (a task which none of us envies!). In response to feedback, the regulator has made some significant policy changes to some proposals, including some areas where the FCA has ‘gold plated’ elements of MiFID II to preserve existing UK regulatory standards. One of the most publicised areas was in relation to taping calls and we’re pleased that the FCA has confirmed it will not apply a requirement for recording phone conversations for all investment services. The regulator stuck to its position however that advisers must either tape telephone calls with clients or keep an equivalent written note where the conversation relates to the “reception, transmission and execution of orders, or dealing on own account”. The FCA also confirmed it will adopt the MiFID II definition of independence, meaning that an individual adviser will not be able to offer both independent and/or restricted advice. The practical application of all of the changes needs to be explored and understood and we’ll update you in due course to tell you what you need to know. PIMFA It is also worth noting that The Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) officially merged at the start of June to formThe Personal Investment Management & Financial Advice Association (PIMFA). Our Chief Executive, Martin Greenwood, moves from being on the APFA Council to a director of the newly formed association and our Group Risk and Regulatory Director, Caroline Bradley, is on its Regulatory Board, so we are well represented. We believe it’s a positive move, creating a more united base from which to lobby and put forward a coherent message on a combined basis.

On the awards trail Following Tenet being awarded ‘Best Network’ at the prestigious Money Marketing awards in the summer, we are pleased to be shortlisted as Financial Adviser of the Year at the MoneyAge Awards 2017. This is a reflection of the quality within the network as a whole, so thank you for your ongoing support. We’ve also made it through to the Regional Finals of the Large Newcomer category in the National Apprenticeship Awards, which celebrate how apprenticeships make a real difference to organisations and careers. Additionally, Ryan Smith from the Paraplanning team has gone through to the Regional Finals for Apprentice of the Year.

Financial advice leaves people better off

Finally, research from the International Longevity Centre and Royal London found that those who received financial advice between 2001 and 2007 accumulated significantly more liquid financial assets and pension wealth (£40,000) than those who didn’t by 2012 to 2014. The report, called ‘The value of financial advice’ also found that financial advice led to greater levels of savings and investment in the equity market, strong evidence to the government and the regulator on the value of face to face advice and the real difference it can make to the quality of people’s lives.

6 - Special Feature

How to Successfully Manage Investment Bond Withdrawals

Investment Bond surrenders are back in the spotlight following HMRC’s introduction of a mechanism allowing policyholders to

David Lloyd Technical Services and Research Consultant

recalculate the tax due on any gains. What is evident is that chargeable gains may not bear any relation to the actual performance of the bond, often resulting in disproportionate tax charges. Policyholders who have unintentionally generated a wholly disproportionate gain can now apply to HMRC to have the gain recalculated on a ‘just and reasonable’ basis. Applications to HMRC must be made in writing and received within four years of the end of the insurance year in which the gain arose. However, there is no guarantee that the calculation provided by HMRC will be any more favourable for the client. As is often the case, getting the right outcome first time is more beneficial than relying on HMRC to right any wrongs! As we all know, one of the features of investment bonds is the ability to withdraw up to 5% of the initial investment amount for each year the policy has been in force without triggering an immediate tax liability. Exceeding this limit may potentially lead to an income tax charge so it is important to fully understand how withdrawals can be structured tax efficiently, both now and in the future. In order to provide flexibility, the majority of investment bonds and capital redemption bonds are written as a series of identical policies or segments. This creates three ways in which withdrawals can be structured: • A partial surrender across all policy segments; • A full encashment of a number of segments held within the bond; • A combination of the above. The following examples demonstrate the difference between the methods of structuring withdrawals, the impact on top slicing calculations, and the effect on any tax due:

Special Feature - 7

PARTIAL SURRENDER ACROSS ALL SEGMENTS Under this method, an equal amount is withdrawn from each segment within the bond. Client A invested £100,000 into an onshore investment bond 3 ½ years ago, split into 100 identical segments of £1,000 each. A withdrawal of £50,000 is now required having made no previous withdrawals. The bond is now worth £110,000. • The first step is to calculate whether there is a chargeable gain by checking whether the withdrawal falls within the available cumulative 5% withdrawals. - £50,000 – £20,000 (4 years of 5% withdrawals available) = £30,000 chargeable gain. • The gain is then added to the individual’s total income to see how much of the gain falls into the higher or additional rate tax band. If all of the gain falls within the basic rate band, no further tax is due. • If a portion of the gain sits in the higher or additional rate tax band, the next step is to spread the chargeable gain across the number of full policy years the bond has been in force. - £30,000 gain / 3 policy years = £10,000 - This is then added to the client’s income to assess whether further income tax is due. • The client has taxable income (after all allowances) of £31,500. Including the £10,000 top sliced gain, total taxable income stands at £41,500, meaning £8,000 falls into the higher rate tax band. For onshore bonds, this amount is taxed at 20% (as the gain as carries a 20% non-reclaimable tax credit) and then multiplied by the number of full years the investment bond has been in force. - £8,000 x 20% = £1,600 - £1,600 x 3 years = a total tax liability of £4,800 A similar calculation would be required if a chargeable gain takes the investor from the higher rate tax band to the additional rate tax band. For offshore bonds, the whole of the excess will be subject to income tax at the investor’s marginal rate as there will be no accompanying tax credit. ADVISER CHARGING It is important to remember that any ongoing adviser charges payable from the bond will be treated in the same way as regular withdrawals and will count towards the annual 5% tax deferred allowance for UK resident policyholders. ONSHORE VS. OFFSHORE BOND TAXATION For onshore bonds, the excess will be treated as carrying a 20% non-reclaimable tax credit, meaning there is no further liability for investors with gains falling within the basic rate tax band. In contrast, offshore bonds impose no tax on the income and gains of the underlying funds (referred to as ‘gross roll-up’). As such, tax will be due on chargeable gains at the client’s marginal income tax rate. However, clients can use any available personal savings allowance (PSA), meaning basic rate taxpayers can receive savings of up to £1,000 and higher rate taxpayers up to £500 in a tax year before paying any income tax. Investment bond gains are classed as ‘savings’ for the purposes of the PSA.

FULL ENCASHMENT OF A NUMBER OF SEGMENTS Under this method of encashment, whole segments are cashed in and there will be an assessment to see whether there has been an overall gain on those segments (taking into account any previous withdrawals and chargeable event gains). Any gains may then be subject to income tax. As per the previous example, the client has requested a withdrawal of £50,000 but it has been decided to fully encash a number of segments. • Each segment is now worth £1,100 (£110,000 / 100 segments). • A sufficient number of segments need to be encashed to meet the required withdrawal amount. - £50,000 / £1,100 = 46 segments (rounded up – this will actually provide £50,600) • The original value of these segments (46 x £1,000 = £46,000) is deducted from the surrender value of these segments (£50,600), producing a chargeable gain of £4,600. • This chargeable gain will be top sliced by the number of full policy years since inception to calculate the top-sliced gain; - £4,600 / 3 policy years = £1,533. - This figure is then added to the client’s income to assess whether any further tax is due. • In this example, there would be no further tax liability as the top sliced chargeable gain of £1,533 would fall within the basic rate tax band. As a result of surrendering these segments, the remaining 5% withdrawal allowance within the bond will be reduced proportionately depending on the number of segments remaining: • 54 remaining segments x £1,000 = £54,000 x 5% = £2,700 per year). There is a big difference between the chargeable gain and top slicing calculations under each method. It is important to consider both the immediate and longer term tax implications before undertaking any withdrawals from an investment bond and you should consider both approaches to work out which is more appropriate for your client. The Technical Services & Research team are always on hand to answer any questions you have on Investment Bonds, or anything else technical, so feel free to give us a call on 0113 2395317 or email [email protected] Conclusion

8 - Events Focus

CPD WEBINARS

Get your 30 minutes of CPD for each webinar you view! On the morning of the last Friday of every month, Tenet will host a live webinar with a single Provider, Fund Manager or Lender which you can view from the comfort of your home or office. You will have the opportunity to view the webinar and interact with the speakers, asking any questions you may have. All of our investment themed webinars are accredited for structured CPD (Mortgage and GI themed webinars offer unstructured CPD).

NO 9: BREWIN DOLPHIN - ‘THE REAL BENEFITS OF WORKING WITH A DFM’ Presented by Jason Williams, Business Development Manager on 28th July 2017 In this webinar Brewin Dolphin will be dispelling myths and explaining where the use of a DFM can help in developing a business model that helps you to concentrate on building and managing your relationships with your clients.

http://webinars.tenetgroup.co.uk/webinar-9/register

NO 8: BANK OF IRELAND - ‘BUY LENDING SOLUTIONS FOR TODAYS’ CLIMATE: FIRST START & CONTRACTOR’ Presented by Nick Parker, Regional Sales Manager (North) on 30th June 2017 The economic climate in the UK continues to evolve and with it comes challenges for home buyers. Bank of Ireland examine one of the ways they can help your clients maximise their borrowing power, especially first time buyers. They also take a look at the growing popularity of contracting.

NO 10: AVIVA - 29TH SEPTEMBER 9.30AM – OUTSOURCING TO MULTI ASSET SOLUTIONS - STANDING THE TEST OF TIME Presented by Paul Parascandalo, Multi Asset Fund Manager and Simon Young, Business Development Director Multi asset funds have become increasingly popular over the past decade. There are many reasons for this; the retail distribution review, pensions freedoms, downward pressure on investment solution costs, and the fallout from the financial crisis. Many advisers have been selecting multi asset funds for specific tiers of clients or indeed all of their clients. However, there is a great deal of choice, from the Mixed Investment to the new Volatility Targeted Sector and Model Portfolio Services to name but a few. In this session we consider the importance of understanding how uncertain markets, views on valuations & yields, and their volatility should be considered when analysing a suite of funds for clients who have been selected for an outsourced solution. We will discuss how Strategic, Tactical Asset Allocation and implementation can be combined, and why a consistent approach is important in ensuring that any selection remains relevant to a client throughout their entire investment horizon.

http://webinars.tenetgroup.co.uk/webinar-8/register

NO 7: TENET – ‘PENSIONS AND DIVORCE’ Presented by David Clapham, Adviser Training Officer on 30th June 2017 Although the overall number of marriages has decreased in recent years, divorce is still proving to be very popular and the likelihood is that a number of your clients will need your advice on its financial implications. This session considers how spouses’ pension funds can be taken into consideration when arriving at a financial settlement.

http://webinars.tenetgroup.co.uk/webinar-10/register

http://webinars.tenetgroup.co.uk/webinar-7/register

Events Focus - 9

To book your place on any of these webinars, please visit: https://events.tenetgroup.co.uk/ tenetcpdwebinars2017

NO 6: PRECISE MORTGAGES – ‘BUY TO LET - THE NEWWORLD’ Presented by Roger Morris, Director of Sales on 26th May 2017 Precise Mortgages will provide a market overview of the changes in the Buy to Let sector which will impact you and your customers.

We recommend you book onto all the webinars and then opt out as and when, if you are not available, or the content is not relevant.

http://webinars.tenetgroup.co.uk/webinar-6/register

NO 2: M&G INVESTMENTS – ‘BOND MARKETS ARE AT A TURNING POINT’ Presented by Laura Frost, Investment Director, Retail Fixed Interest Team on 31st March 2017 For bond markets we are at a turning point; record low yields and confidence, which has compressed credit spreads, make fixed income investing a challenge. But there are pockets of value.

NO 5: JUST – ‘MAKING IT PERSONAL’ Presented by Malcolm Tyrell, Business Development Manager on 26th May 2017 A look at what has been happening since pension freedoms were introduced taking into account what the regulator is saying and focusing on personalisation of benchmarking for clients.

http://webinars.tenetgroup.co.uk/webinar-5/register

http://webinars.tenetgroup.co.uk/webinar-2/register

NO 4: LEGAL & GENERAL - ‘NO INCOME MEANS THERE WILL BE AN OUTCOME’ Presented by Steve Fallon, Market Development Manager on 28th April 2017 Income protection is still a hugely undersold product with only 7% of mortgage holders having any in place, and with the rental Market growing faster than the ownership one its importance is increasing.

NO 1: PREMIER ASSET MANAGEMENT – ‘IF 2016 BROUGHT SURPRISES, WHAT DOES 2017 HAVE IN STORE?’ Presented by Mark Rimmer, Product Director, Multi Asset Funds on 24th February 2017 Setting out the key economic events of 2017 that we should all be mindful of as we navigate the markets for our mutual clients, plus a general overview of markets, valuations, and finally how Premier’s multi asset team are positioning their portfolios to take advantage of the opportunities which lie ahead.

http://webinars.tenetgroup.co.uk/webinar-4/register

http://webinars.tenetgroup.co.uk/tenet-webinar-1/register

NO 3: SHAWBROOK BANK – ‘YOUR ESSENTIAL GUIDE TO SECOND CHARGE MORTGAGES IN 2017’ Presented by Claire Rankin, Head of Network Distribution, Residential Mortgages on 31st March 2017 With considerable change in the second charge mortgage market as result of stricter regulation and adjustments in lender distribution, advisers have direct access to Second Charge Mortgages. Learn more about these products, and the scenarios where they might be the best fit for your customers.

WEBINARS STILL TO COME – 2017

Date

Webinar Event Subject

27/10/17 11

Investment & Pensions Investment & Pensions

24/11/17 12

http://webinars.tenetgroup.co.uk/webinar-3/register

10 - Events Focus

EVENTS STILL TO COME…

Final investment themed events for 2017 – have you booked your place? All events are free of charge, so don’t miss out.

MASTERCLASS TWO There is still time to book your place on some of the Round Two venues of our popular Masterclass events, which will focus on Investments. In this round there will be engaging presentations from Tenet and product provider experts. We will hear from our specialist EIS partners looking at the background, changing landscape and qualifying EIS investments, along with Business Relief (BR) and the Residential Nil Rate Band. We will also take a look at different aspects of the pension market, from SIPPs, trustees and insured SIPPs, managing money in retirement, considerations in relation to pensions and divorce, the suitability process and a modern approach to underwriting during retirement. The day will also look at achieving business efficiencies with the use of specialist investment management and the use of bonds in today’s advice process as part of tax planning for clients. And finally, the key elements and drivers of the inheritance economy and the opportunities available as part of these developments. This event represents a great opportunity for you to top up your CPD, as well as receive market insight and sales tips.

Date

Location

Venue

06/09/2017 07/09/2017 11/09/2017 12/09/2017 14/09/2017 19/09/2017 20/09/2017 21/09/2017

Manchester Glamorgan

Haydock Park

The Vale

Leeds Belfast

Oulton Hall

Stormont Hotel

Edinburgh

MacDonald Houstoun House Hotel Hilton at the Ageas Bowl

Southampton

London Central DeVere Holborn Bars

Birmingham

Village Solihull

To book your place, visit: https://events.tenetgroup.co.uk/masterclasstwo2017

Events Focus - 11

PROFESSIONAL DEVELOPMENT MEETINGS – CYCLE 3 Our final round of PDMs will provide an insightful day, with content from a wide range of programme partners. The agenda will start with a look at the effectiveness of a decumulation investment strategy and managing market volatility during retirement. We will then examine the importance of protection planning as part of a holistic advice approach, managing risk and clients’ perceptions of risk in the market. This will be supported by considering the evolution of investment solutions, a review of income protection and state benefits, and the duty of care to your clients. We continue with a look at equity release (ER), including a market update and the exciting prospects for ER in the future. The closing sessions begin with a look at the opportunities available through employee benefits and conclude with a session about advising on pension changes - with consideration to the regulator’s current thinking on transferring safeguarded benefits and ensuring suitable client outcomes. Andre Camilleri, Mansfield Financial Planning Services - “Once again a well organised and informative programme keeping me up to date with all the latest news and views within the financial services industry”. Paul Molyneux, Molyneux Associates - “Tenet working with its provider partners deliver a valuable service for its network directly authorised members. No surprise that it was voted network of the year at a decent award ceremony.” Gloucester 05/10/2017 Hilton at the Ageas Bowl Southampton 10/10/2017 The Westerwood Hotel Cumbernauld 11/10/2017 Lumley Castle Durham 12/10/2017 Oulton Hall Leeds 17/10/2017 Hilton Maidstone Maidstone 18/10/2017 DeVere Holborn Bars London Central 19/10/2017 Down Hall Bishops Stortford 31/10/2017 Sandy Park Conference Centre Exeter 01/11/2017 The Vale Glamorgan 02/11/2017 Village Solihull Birmingham 07/11/2017 Hilton Reading Reading 08/11/2017 Holiday Inn Wembley London Wembley 09/11/2017 Nottingham Belfry Nottingham Date Location Venue 26/09/2017 Tankersley Manor 28/09/2017 Stormont Hotel 03/10/2017 Haydock Park Sheffield Belfast Manchester 04/10/2017 Stonehouse Court Hotel PDMs have been Tenet’s flagship events for over 10 years and have always received the best attendance and feedback. See what recent attendees had to say:

ADVISER FORUM 2017

This year’s Tenet Adviser Forum is set to take place on Thursday 7th December at the Queens Hotel, Leeds. We’re bringing the event back to the home town of Tenet and hosting it at the iconic Queens Hotel, situated at Leeds train station. The event will contain a morning of optional topic-specific breakout sessions available to all advisers, which can be tailored to training needs. This will be followed by a formal afternoon business session with main stage content from Tenet Senior Management, external speakers and our top provider, lender and fund manager partners. Returning in the evening is the formal Gala dinner, which this year is themed Gatsby! Advisers are invited to stay on, courtesy of Tenet of course, and you can purchase tickets for partners. Guests in the evening will enjoy a formal gala dinner, with Gatsby themed entertainment. The dress code: formal – Gatsby themed attire is optional. We hope to see as many of you as possible at this year’s annual event and hope you’ll take the opportunity to host your Christmas party with us and your partners! To secure your place please visit: https://events.tenetgroup. co.uk/adviserforum2017

To book your place, visit: https://events.tenetgroup.co.uk/cyclethreepdms2017

12 - Protection Special Feature

protection panel NEW a reminder of all the other enhanced protection support PLUS

As part of our focus on providing you enhanced protection support, on 17th July we simplified our protection panel offering with enhanced terms, more choice and a more simplistic process when quoting. We hope you agree that this is very positive news and shows our commitment to providing you with the best protection support possible. Introducing the new protection panel The previous Pick 6 and Elite panels have been merged back into Tenet’s ‘whole of market’ panel. We have either maintained the existing rates or, in some cases, we have improved them. As the panel is researched by Tenet, it is classed as whole of market so you can hold out as being independent. The ‘whole of market’ panel is broken down into a number of product areas. Advisers should consult the panel before making a recommendation as the panel may not include every product from every provider.

Providers currently included on this panel are:

The panel also includes specialist providers who deal with impaired life, limited product ranges and new entrants to market. If you deem a product through one of these specialist providers to be suitable for your client, notify us of the client and provider name by emailing [email protected].

Specialist providers currently included on the panel are:

Please note: As per our existing ‘off panel’ process, if you need to use a product not included on the panel, please complete the Off Panel Approval Request Form and send it to [email protected] to seek approval. You can download the form via the extranet: https://www.tenetgroup.co.uk/extranet/4838.html

Protection Special Feature - 13

WIDE RANGE OF PROTECTION SUPPORT AVAILABLE As per previous communications over the last few months, we have been making enhancements to the protection support we provider to help you increase your income and for clients to get the cover they need. This support includes: Enhanced helpdesk If you write protection business… our Mortgage & Protection helpdesk is available to help answer any technical questions you have and help you place cases with the right provider. If you don’t write protection business… you can refer your clients to the helpdesk and they will advise the client over the phone and write the business for you. You will receive 30% of the initial commission, with no clawback after six months!

Does anything need to happen with agencies? If you already use providers on the ’whole of market’ panel, then there is no action required – we will have simply moved your existing agency across to the new terms. If you don’t currently have access to one or more of the providers, you can request agency access by emailing [email protected]. Please state which providers you need access to. IMPORTANT action for those previously on the Pick 6 panel If you are on the Pick Six panel you do need to update your Important Information about Our Services Document (IIASD) as you will be moving from a limited range to whole of market. In the protection section, please replace the current wording to: ‘We offer products from a range of insurers for Life Assurance, Critical Illness Cover, and Income Protection Insurance.’ Please note that you do not need to resubmit your IIASD to Tenet for approval. However, we do need a copy for our records, so when you have updated your document, please send a copy to [email protected]. If you are currently using the Whole of Market or Elite panels, you do not need to make any changes to your IIASD as it will already state that you are offering a whole of market offering.

Call: 0113 239 5111 Email: [email protected]

Enhanced marketing support The Tenet Marketing team has produced a wide range of protection marketing support for you to utilise. This includes a ‘guide to protection’, posters, leaflets and adverts for the different types of protection cover, and sales aids to help you overcome objections.

Enhanced documentation There is a new protection fact find and ‘demands & needs’ template, which are much shorter than the previous versions, making them quicker and easier to use. In addition, we have also provided a protection declaration to use with clients who refuse to have protection advice or don’t go ahead with a recommendation. By asking the client to sign the waiver form it heightens the importance and may make them think differently. Enhanced extranet content All of this support can be found on the dedicated ‘protection support’ area of the extranet. Simply type ‘protection support’ into the extranet search box and it will appear as first in the list of results.

14 - Special Features – Deals

EXTENDING THE RANGE OF DISCOUNTED TOOLS AND SERVICES AVAILABLE TO YOU!

What type of deals are available? We have categorized the deals available into 3 main subsections: Software Deals ** Features a collection of special deals

We are continually looking to extend our range of discounted tools and services to support advisers in key aspects of their business and have recently partnered with AssetQ, which is recognised as an essential tool for investment selection and ongoing suitability checks. This ‘deal’ is just one of many, so if you don’t know about the great deals and offers Tenet have negotiated on your behalf, take just 5 minutes to visit the extranet to see what is available and whether your business could benefit*. Where can I find out about Tenet deals? We’ve been busy negotiating on your behalf and can offer a range of deals on adviser support products and services that go beyond just simply software. If you haven’t already done so, why not visit the ‘Grow Your Business’ area of the member extranet :- https://www.tenetgroup.co.uk/extranet/11834.html and take a look around. The latest addition to the offers from AssetQ helps advisers gain an instant understanding of risk on collective investment products and records suitability checks, whether for client DB transfers, CIP management, portfolio risk measurement, legacy holdings assessments or fund screening for new investments.

that have been negotiated with software providers for the benefit of Tenet advisers, including client management/back-office systems, risk profiling tools and financial planning tools. Adviser Support Deals Details an international payment service Product Deals Here you can find details of Platform Special deals and Discretionary Management deals introduced specifically for customers of TenetConnect/Select advisers.

EVERYTHING IN ONE PLACE

Disclaimer Our website contains links to websites owned and operated by third parties. If you use these links, you leave our Website. These links are provided for your information and convenience only and neither Tenet Group Limited nor any company within the Tenet Group of companies (together referred to as Tenet), including its employees or agents, are providing any endorsement or assurance on the accuracy or completeness of the content of such linked websites or third parties. Tenet has no control over the contents of any linked website and is not responsible for these websites or their content or availability. Tenet therefore makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, the information contained on them or the suitability or quality of any of their products or services. If you decide to access any third party websites (including, but not limited to, the websites of any software providers with whom Tenet has negotiated specific deals for the benefit of Tenet advisers) and make use of the information contained on them and/or enter into any contract for the supply of goods or services from any such third party, you do so entirely at your own risk. Tenet accepts no liability for any damage or loss, however caused, in connection with the use of, or reliance on, any information, material, products or services contained on, or accessed through, any such linked website. * Your extranet will provide full details of the deals available to you based upon your relationship with Tenet – i.e. a TenetConnect member or TenetSelect client. **These tools are not regulated products and should only be used to assist advisers in the recommendation process. As such, this compilation is not a “recommended panel” of software systems, but will include the most commonly used tools in the marketplace today.

We hope you can take advantage of some of the fantastic deals which are on offer to you as a Tenet member. We are always looking for new suppliers to add to the range so do keep visiting the site to check out the latest deals.

FOR APPOINTED REPRESENTATIVES ONLY

RECOMMEND ADVISERS TO TENET AND WIN, WIN, WIN...

Generate from £500 to a maximum of £1750 * per successful referral. For every referral we’ll enter you into a prize draw to win £250 * . Benefit from being part of our growing network.

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*Amount paid dependent upon the number of new appointed representative advisers. Prize draw terms and conditions apply. Prize is for £250 in shopping vouchers. Draw open 13th September 2017 and closes 31st December 2017. For full details visit https://www.tenetgroup.co.uk/228.html SO WHAT ARE YOU WAITING FOR? Call: 0113 239 5312 Email: [email protected] Visit:

https://www.tenetgroup.co.uk/extranet/228.html

16 - Special Focus

More than eight million employees now auto-enrolled!

The story so far For some of you, auto-enrolment will be a distant memory. Others will be just starting to get into the routine of the added processes. Whichever applies, auto-enrolment was - and is - one of the boldest moves to increase the probability that people will have higher standards of living in retirement. So it is important that the initiative is successful. The burden of that successful outcome falls on the shoulders of the employer and this article is intended to update you the latest position and remind you about some important changes in the timing of increases in employer and employee contributions. The latest figures fromThe Pensions Regulator show that auto- enrolment has passed the eight million employees mark. During June 2017 alone, 168,000 people gained workplace pensions thanks to automatic enrolment – the equivalent of almost one every 15 seconds. This coincided with 44,328 more UK employers declaring that they had completed their workplace pension responsibilities, bringing the total number who have done so to 642,454. A further 500,000 are set to complete the auto-enrolment process in the coming months. Getting eight million people enrolled is a formidable achievement and puts a huge number of people on the path to a more financially secure retirement. The challenge in future will be to keep employees enrolled as the contribution amounts increase. They need to recognise that even with extra contributions from their employer, in most cases they will end up paying 4 per cent of their net income. It will also be interesting to see how the new Lifetime Individual Savings Account (LISA), aimed at first time buyers or retirement, will impact on automatic enrolment participation.

Slightly concerning is that despite an upcoming deadline, a third of small business owners still don’t know what pension auto-enrolment is. A recent survey of more than 2,300 small businesses in the UK* revealed that over a third (35 per cent) do not know what pension auto- enrolment is, and more than two fifths (43 per cent) have stated the extra expense will affect the hiring of new staff. Approximately 200,000 employers per quarter will be reaching their staging date throughout 2017 and auto-enrolment will be mandatory for all British businesses by 2018. Business owners will have to contribute to all of their employees’ pensions, unless they opt out. So it is important that the regulator keeps up the tempo of promoting auto-enrolment awareness. An important reminder - changes to statutory phasing You will be aware that both employer and employee contributions are set to be phased over the next couple of years and that this has been put back to reduce the extra cost impact. For those who have staged over the last year or so the picture hasn’t changed, but for older staged companies, the phasing dates have been revised. New regulations have also been published which alter the dates on which the minimum contributions required will need to be increased. The phasing in of these increases will be as follows: • From the employers staging date until 5 April 2018 (previously 30 September 2017), the statutory minimum contribution for an employer is 1 per cent of a jobholder’s qualifying earnings. • From 6 April 2018 to 5 April 2019 (previously 30 September 2018), the statutory minimum contribution for an employer is 2 per cent of a jobholder’s qualifying earnings. • From 6 April 2019 (previously 1 October 2018), the statutory minimum contribution for an employer is 3 per cent of a jobholder’s qualifying earnings.

Special Focus - 17

If you are concerned about auto-enrolment or have a question about employee benefits and pension schemes in general, please contact TEBS by e-mail at: [email protected]

We await to see how payroll software companies will notify and undertake the changes, and suspect in many cases that it will be a manual payroll operation. Therefore, we suggest you contact your payroll software company and/or bureau to ensure you are adequately equipped and have factored-in the time to make the necessary adjustments. These government-made changes recognise the fact that auto- enrolment still poses a financial strain on many businesses and the new phasing dates are aligned with the tax year - making it administratively easier for employers and scheme providers. TEBS on the move As the pace of auto-enrolment continues to increase, we are close to completing the transition of our admin services to Leeds. We currently have more than 550 schemes on board and are uploading an estimated 3,000 files per month as the next round of staging dates draws closer. …and new, improved benefits in the pipeline In tandem with the move, we are developing an exciting new suite of employee benefit solutions to embrace group risk, employee voluntary benefits and health & well-being. During the course of our auto-enrolment activities we have received a significant amount of feedback from employers about the need to appeal to the younger generation and make auto- enrolment easier for them to access and understand. Accordingly, we shall be launching our new range of benefits later this year to dovetail with the immediate needs of young people’s lives and will communicate further details when everything is in place.

As part of the process, we will be working closely with advisers to ascertain how best to tailor the benefits to suit the intended audience.

* Conducted by local services marketplace, Bidvine.com.

18 - Special Feature

In just a few short weeks since the official launch of Tenet’s platform we have over £1m AUM (Assets Under Management) on the platform with further significant investments in the pipeline too! Why use a Platform? The use of platforms has become common place with an estimated £592 billion of investments now being managed on platforms in the UK (UK Adviser Platform Guide*). There are different reasons as to why a platform can be in the interests of a particular client; however, the overriding factor is usually the convenience of having all of their investments in the same place. This convenience does come at a cost though, and it’s worth considering if all of the features of the platforms are required by your clients. Although using a platform can simplify advisers’ administration, it’s important to remember that as the client is paying the platform fee, they must be the ones receiving the benefit of using a platform - not the adviser or their administrators. With the launch of the new Tenet Platform, we look at some of the important areas to consider when choosing a platform for your clients investment. Features and tools Platforms offer a range of features and tools including CGT calculators, a client portal, secure adviser/client messaging and electronic client acceptance of advice when in advisory model portfolios. Whilst these features and tools sound good, they can come at a cost, so it’s important to check what costs are associated and ensure that the client is not paying for something that they won’t use - which can happen with some platforms. The Tenet Platform offers all the above features as standard, including central management of the Tenet Model Portfolios, all at a market leading platform fee. Access to the right funds and products Once you have selected a suitable investment and product solution for your client, its availability on platforms will obviously impact which platform you recommend. Could your clients benefit from the new TENET PLATFORM?

*“Adviser/intermediated platforms have grown around 1.5 times faster than direct platforms”. Platforum UK Adviser Platform Guide Issue 29, Figure 10 (March 2017).

Special Feature - 19

Just be sure that the client will be using all of the features of the product you have selected. For example, if the client is not interested in dealing in shares/ETFs, or purchasing commercial property, it’s unlikely that the additional cost for a Self-Invested Personal Pension (SIPP) over a Personal Pension (PP) would be in their interests. On the Tenet platform we chose an integrated PP/SIPP, so all clients start in a PP. This converts to a SIPP only when the client requires a SIPP feature, ensuring costs are managed effectively. Value for money In most client recommendations, value for money is a big consideration. Whilst the cheapest is not always the best, the key question to ask is “will your client use the available features that they are paying for?” If the needs of your client can be met by multiple platforms equally, logic would suggest that the cheapest platform would offer the most value for money. The Tenet platform has a great range of features and is available at a market leading rate. It would therefore be wise to consider it against the platforms that you presently recommend to assess which offers your client better value for money. • The platform must be of benefit to the client, not the adviser • Consider the features and tools available, and if the client would want or need them • Choose a platform where you can access the right product and investment solution for your client, without incurring unnecessary costs for unused features • Ensure your research is focused on selecting a platform that offers the best value for money to the client If in doubt, the cheapest platform that offers a suitable investment solution, product wrapper and the required features will probably offer the best value for money to your client. If you want to find out more about the Tenet Platform, you can contact the Tenet Platform team on 0113 239 5121 or via [email protected] . So in summary, remember when considering which platform to use for your clients:

20 - Special Feature

Are you missing an opportunity to get an independent TVAS report?

The surge in DB transfer value requests has taken its toll and increased pressure on those in the market that can offer this service. Many are working to extended turnaround times, further reducing the time advisers have available to fully analyse the case and provide a recommendation to the client. Product provider led TVAS reports can often be tied into their specific solutions, which could leave them ‘not fit for purpose’, where the end solution is not the most appropriate for the client’s circumstances and objectives. Tenet Paraplanning – our service to you

• Our Paraplanning Team offer an independent Transfer Value Analysis Service at cost effective rates.

• Our service level is 10 working days once all the necessary scheme information is available, and there is no obligation to progress to a full financial planning report (although we are more than happy to look at the full advice if required!)

• All TVAS reports are produced by experienced paraplanners and checked internally within our 10 working day service level.

Whether or not you choose to use us for the full paraplanning service, you can rest assured that the TVAS will meet Tenet requirements. In addition, we will >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36

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