Connected Issue 75 - Spring 2020

Connected Issue 75 - Spring 2020

connected A Tenet Group Publication Issue 75 Spring 2020

SPECIAL FEATURES Helping you make the most of Intelligent Office IN THE KNOW – The FCA’s Platform Consultation

OTHER FEATURES New training for all your protection needs Explore the marketing toolkit to help drive business in 2020

A focus on the

regulatory landscape for 2020

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

connected A Tenet Group Publication Issue 75 Spring 2020

SPECIAL FEATURES Helping you make the most of Intelligent Office IN THE KNOW – The FCA’s Platform Consultation

OTHER FEATURES New training for all your protection needs Explore the marketing toolkit to help drive business in 2020

A focus on the

regulatory landscape for 2020

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

WELCOME – 3

CONTENTS… what’s in this issue

Editor’s Foreword

4 A focus on the regulatory landscape for 2020 Brexit is set to dominate UK market performance in 2020, so Steve Jones, Adviser Relationship Director, updates on the current thinking on this and provides a detailed roundup of all the other areas of focus coming down the track right now. 6 Helping you make the most of Intelligent Office A look at the enhancements and

4

Welcome to your Spring issue of connected Our regular industry update makes a comeback in this issue, with Steve Jones, Adviser Relationship Director, providing a full round up on all that is happening on the regulatory front. He also writes a second article focusing on iO, giving an update of the current position to help you embed iO into your business, including all the enhancements coming down the track. You can read his articles on pages 4 and 6. Also in this edition As mentioned in the last issue, protection is set to feature heavily in 2020 as an area where more can be done to help you generate sales. The support in this area from Tenet is coming to life with new training available as part of this increased focus. See page 12. Technical Services and Research also contribute to this issue with an interesting article on the FCA consultation on platforms which aims to improve competition in this area. See page 8. Supplement enclosed with this issue With this edition we are including our supplement – ‘Protection Insight’. This protection focused publication provides an opportunity for providers and Tenet to help you focus on the protection market, understand customers’ protection needs and offer suitable solutions. Finally… In addition to our regular events article, we also promote the marketing toolkit, to ensure you are fully aware of all the development opportunities we can offer to you and your business. A testimonial from a happy customer highlights the benefit of this service. Take a look at page 14. I hope you find connected informative and useful and as always let me know if you want me to include anything else in future issues. You can email me: [email protected]

support available to help you embed iO into your business.

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7 Refer a Friend - New scheme Now you can earn money without having to wait until the firm is authorised.

8 IN THE KNOW

– The FCA’s Platform Consultation Aimed at improving competition between platforms.

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10 Plan your calendar with our programme of events for 2020

12 New training for all your protection needs We want to make it simpler and easier for you to write or refer protection business, by giving you all the tools and support that you need, so a new suite of protection training modules have been developed as part of this increased focus.

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14 Explore the marketing toolkit to help drive business in 2020

Best wishes

PROVIDER SUPPORT 15 - 32 Latest News and Products

Sara J Healey Marketing Consultant

WINNER Best Network

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

A FOCUS ON THE REGULATORY LANDSCAPE FOR 2020

With the increasing global spread of the Coronavirus, clients are thinking about the impact on their investments. At the time of going to print, our Technical Services and Research Team has provided both an update on the short term market volatility caused by Coronavirus and how this can be addressed with concerned clients, and guidance on preparing for a DIM 10% portfolio drop. This includes a letter within iO that could be sent to clients to notify them of a 10% drop in the value of their discretionary portfolio in line with the requirements of MiFID II. Both bulletins can be found within the TS&R Communications library. On the investment front, essentially our overall message is that clients with sufficient capacity, who are prepared to invest for the longer term, should not be concerned about short term fluctuations in investment values. Brexit is also set to govern UK market performance again in 2020. However, a decisive victory for the Conservatives has fuelled optimism that the Government can finally ‘get Brexit done’ and end the uncertainty that has deterred investors. Before the Coronavirus outbreak, some commentators were even predicting that the UK may have been on track to experience the strongest economic growth in Europe this year. Our trade body PIMFA has outlined the importance for advisers of having a plan if they have overseas clients, so as not to leave them stranded. Our Technical Services and Research team will be monitoring developments in relation to the implications of Brexit on financial services, and further guidance will be issued once the impact of any negotiated trade deal is known. In the interim, our ‘Brexit Uncertainty’

Increased focus on ethical investing More and more funds are adopting ESG criteria, which stands for environmental, social and corporate governance. These are the three central factors in measuring the sustainability and ethical impact of a company’s investments. The FCA wants to improve transparency and disclosure in this area and final rules are due before June this year, with the overarching aim of protecting consumers from so-called “greenwashing”. This is where funds and firms market products and investments to appear more sustainable and ethical than they really are. Proposals here include common classifications and labelling, but there will also be an increased onus on advisers following good practice in assessing ethical preferences. Ultimately however, the suitability of a product will trump any green wishes, which raises challenges for the industry to identify enough suitable investments to meet increased demand, without harming performance. The FCA will continue to increase its focus on how financial services firms treat clients who are susceptible to making poor decisions. As explained in our updated Advice Standards and Guidance, it’s important not to think of vulnerable clients solely in terms of those who are aged over age 75. Older people can become vulnerable when making financial decisions but vulnerability is not something that happens automatically on someone’s 75th birthday. Many clients aged over 75 will not be vulnerable and equally, quite a few clients who are younger than 75 will be vulnerable. The key is for the adviser to recognise when a person is potentially vulnerable and use empathy and their people skills to identify whether the person actually is vulnerable. If they are, advisers must then take appropriate action to avoid the risk of the client making a Vulnerability – it’s more than just a number

guidance, issued in January 2019, remains a good reference point. This examines some of the considerations around advising clients in the circumstances of no deal on Brexit, with an underlying theme being that Brexit does not really change anything with regard to establishing client objectives and assessing the suitability of investments to meet these. Looking beyond Brexit, what are some of the key regulatory themes of 2020? DB Transfers - preparing for the proposed contingent charging ban At the time of writing, we are still awaiting the publication of the FCA’s policy statement and final handbook text in this area, due at some point in this first quarter of 2020. If introduced, the ban on contingent charging for DB pension transfer advice means that advisers will be required to have the same method for calculating the fee, regardless of whether or not a transfer is recommended or arranged. If introduced as proposed, the new rules could then take effect very quickly, although there will be a transitional period where a contingent fee can be received. This is only where an ‘engagement letter’ agreeing to the charge was issued to the client before the rules came into force and the fee is incurred no more than three months after the rules applied. We would recommend therefore that firms who agree to provide advice on DB pension transfers on a contingent charging basis should ensure that they get their relevant fee agreements signed at the earliest opportunity. It’s also very important for firms to keep a record of enquiries they receive from both existing, and/or prospective clients who are considering a DB pension transfer but are deterred from doing so at the triage stage. This information may be required as evidence in the future to the FCA or PI insurers that a significant proportion of enquiries in this area do not progress.

INDUSTRY UPDATE – 5

We’re expanding our 2020 Mortgage and Protection Development Programme for CAS status Following feedback from firms about the difficulty in bringing on new advisers and having the time to mentor them to competent adviser status, our fully mentored mortgage and protection programme launched last year and has proved very popular. To fulfil current demand, in January this year we welcomed two new mentors, Leigh Beal and Lisa Padden. Their appointment will allow us to expand our mentoring to a total of 32 trainees in 2020. Leigh worked for Yorkshire Building Society for 17 years, progressing into a training and competence mortgage specialist role, whilst Lisa has over 30 years’ financial services experience and was previously Regional Head of Mortgages for HSBC. The programme offers full support for trainees who have achieved CeMAP (or equivalent) to achieve competent adviser status (CAS), taking away the responsibility from firms. Tenet’s programme includes all study materials, a five-day induction course, two days of assessment via role plays and file checking, and ongoing coaching and support from the mentors. To express your interest, please contact Mark Penswick in the Central Recruitment Team on 0113 239 5118 or email [email protected]. Finally, iO continues to be a major focus for Tenet in supporting you on the journey to embed the system into your business. I’m able to share with you some of the developments coming down the track, including enhancements to functionality, support with >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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