Connected Issue 76 - Summer 2020

Connected Issue 76 - Summer 2020

connected A Tenet Group Publication Issue 76 Summer 2020

SPECIAL FEATURES Opportunity knocks at the letting door! The value in having a two-way conversation

OTHER FEATURES Tenet Online Events Programme 2020 Our marketing toolkit could help you drive business

Lockdown and beyond

A look at our experience and the regulatory horizon

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

WELCOME – 3

CONTENTS… what’s in this issue

Editor’s Foreword

4 Lockdown and beyond

A look at our experience and the regulatory horizon Steve Jones, Adviser Relationship Director, shares our insight on how the market is reacting, as well as outlining the support we have in place for your business, followed by a scan of the regulatory horizon.

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Welcome to your Summer issue of connected Following the UK entering lockdown on 23rd March, life as we know it has been effectively put on hold and we’ve all had to quickly adapt to new ways of both working and living. In our regular industry update, Steve Jones, Adviser Relationship Director shares Tenet’s insight on how the market is reacting, as well as outlining the support we have in place for your business, followed by a scan of the regulatory horizon. You can read his article on pages 4 and 5. Also in this edition Protection is still an area of dedicated focus with the aim of doing more to help you generate sales. Technical Services and Research contribute on this, with an article looking at the protection opportunities in the rental market – an underserved market at the current time. We also take a look at the role of the Network Focus Group – the voice of the membership who help us develop long term strategies for the growth of Tenet and you, our customers. You can read more on this, including testimonials from members, on page 10. Supplement enclosed with this issue With this edition we are including ‘Fund Spotlight’. This publication provides a dedicated medium for fund managers to showcase their products and services to ensure you are up to date with all the latest news and information in the fund management sector. Finally… In addition to our regular events article, where all activities have moved online at the current time, we also promote the marketing toolkit. The toolkit ensures you have access to a wide range of materials providing development opportunities and also includes new client-facing information sheets to help you keep in touch with people when they need it most. Take a look at page 12. 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] Best wishes Sara J Healey Marketing Consultant

6 T enet Online Events Programme 2020

We are pleased to still be able to support your development through our online events programme, offering the same CPD that you would expect to receive at our live events. Plus you can download anything you’ve missed. 8 O pportunity knocks at the letting door! With the increasing numbers of renting households, protection needs are changing. Because someone is renting property, does not mean their protection needs should be overlooked. The rental market is an underserved area, so may represent a potentially big opportunity. 10 T he value in having a two-way conversation Take a look at the work of the Network Focus Group – where all types of firms and advice is represented, giving a voice to members to help shape the proposition, review initiatives and contribute to on-going work on policy. 12 O ur marketing toolkit could help you drive business 14 R efer a friend Our enhanced scheme means you can make money without having to wait until the firm is authorised

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PROVIDER SUPPORT 15-36 Latest News and Products

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

Market reaction to COVID-19 It’s very easy when stock markets are falling for clients to become fearful and then attempt to take corrective action by changing investment strategy. Luckily, most investors that seek professional advice will have a diversified investment portfolio that has been carefully constructed to protect them from the full extent of a large drop in market values. Plus the valuable work advisers have been doing with clients over the course of their relationship is helping them stick to their long term investment strategies, with no visible ‘dash for cash’. Based on our own modelling, the impact on recurring income appears to be in the range of an 8-15% reduction. In May, the housing market took its first steps towards returning to business, as housing secretary, Robert Jenrick, published new Government advice on home moving during the coronavirus (COVID-19) outbreak. This is a first positive step towards reinvigorating the market and releasing some of the estimated £82 billion-worth of pent-up demand. These announcements do not mean that we’re back to normal by any means and we still have a long way to go before we have a fully functioning housing market. There are still a number of unanswered questions that the industry continues to wrestle with, such as how lenders are going to support people coming off mortgage payment holidays and the ongoing issue of assessing affordability for furloughed workers. Against a backdrop of negative news and a reduction in activity however, as a sector we welcome these changes with open arms. As your network, we will continue to look at how the support we provide may need to change and to see what interventions we can lobby for in order to help accelerate this market recovery. Tenet has already been able to offer some financial support to help member firms’ cashflow, by giving our members an eight week payment holiday from FCA and PII fees from April, and in relation to iO licence fees for furloughed mortgage advisers. Being a well-capitalised and resourced business means that we have been able to continue with our schedule of practice buyouts throughout the pandemic and we have still been able to complete four asset purchases during lockdown, allowing the advisers in question to retire as planned. If you think this may be of interest, please speak to your Account Manager in the first instance. Our response to COVID-19 Our own transition to remote working went very smoothly and you should hopefully be noticing very little difference in your day-to- day interactions with us. We will continue to review the Government’s latest guidance and adapt our working environment as appropriate, but for now it is business as usual, just with teams dotted around the

Lockdown and beyond A look at our experience and the regulatory horizon A lot has certainly changed since I wrote my last update in early March! Following the UK entering lockdown on 23rd March, life as we know it has been effectively put on hold and we’ve had to quickly adapt to new ways of both working and living. In this article, I’ll share our insight on how the market is reacting, as well as outline the support we have in place for your business, followed by a scan of the regulatory horizon.

Steve Jones Adviser Relationship Director

INDUSTRY UPDATE – 5

We didn’t just want to provide online support however and our series of COVID-19 live video conferences and workshops, have been very well received and have given us the opportunity to hear first-hand your own experiences of the current situation. We’ve also been working closely with our Network Focus Group (NFG) to ensure we keep our finger on the pulse (there is an article focusing on the role of the NFG on page 10) and new focus groups are being established to look at technology, communications, compliance and business development.

the coronavirus pandemic, but we have taken the decision not to go down the furlough option, instead taking the opportunity to bolster frontline teams. At the end of April, we launched our new Tenet Assistance Programme (TAP) in conjunction with Care first - an independent, leading provider of professional support services. This is a free and confidential service, funded by Tenet, for you and any other employees of your firm to use. All our COVID-19 related support can be easily accessed via our dedicated extranet area.

country! Due to the adoption of Intelligent Office, our infrastructure is also primarily cloud based, which means that core functions such as payment processing, have remained unaffected. We are actually seeing more efficiency in certain areas since lockdown, such as our schedule of virtual events, which have attracted very positive feedback. There may be elements of these new ways of working that we will retain after restrictions lift, with more of a blend of online and physical sessions. Reportedly, two fifths of advice firms have been forced to furlough staff as a result of

REGULATORY FOCUS

Risk profiling in the time of COVID-19

Reminder on DFM 10% drop notifications

COVID-19 - commitment to help existing mortgage customers On 28th April, UK Finance announced that, as a result of the COVID-19 pandemic, mortgage lenders have renewed and expanded on a cross-industry voluntary commitment to help existing mortgage customers easily switch to a new deal when they reach the end of their term. This includes borrowers who have been granted a payment holiday or have been furloughed. As a result of the pandemic however, many more consumers may be vulnerable, so it is vitally important that they explore their options. Whilst a product transfer may seem the most straightforward option, we are underlining the message, via our membership of industry bodies such as the Association of Mortgage Intermediaries (AMI), that consumers should talk to a mortgage broker, to assess individual circumstances. With around one million customers expected to reach the end of their fixed rate deal between now and the end of 2020, this clearly highlights the need for advisers to have an effective client contact strategy in place. To finish, I hope when I next write this update in the Autumn, that normal service and business levels will have largely resumed. I think we’ll in fact be looking at a new normal, which will retain some of the positive developments from the past months and could see the release of some of the pent up demand currently in the market. Have you benefited from any efficiencies from the enforced remote working and are you looking to blend the way you interact with your clients in future as a result? We’ve certainly had our eyes opened at Tenet to different ways of working – the positive reaction to our online events schedule being a key example. There will always be a place for actual physical events and interactions but there are certainly some great efficiencies to be gained from embracing technology for the right tasks.

An important part of a client’s annual review is conducting a new risk profile, to check that their attitude to risk hasn’t changed. Normally there might be small variations every few years, but what do you do when your client’s attitude changes dramatically in the midst of a global pandemic-triggered stock market correction? Advice from our Technical Services and Research team is that the conversation with the client is critical. We recommend setting the scene by discussing the below points before completing a new risk profiling questionnaire: Remind them about the original risk profiling process • Using descriptive language will help them go back in their memory to the place they were when they completed the risk profiling questionnaire • Talk through max drawdown and the capacity for loss that they agreed on Discuss the goal that they were working towards • What was it and when? • Are they still on track to achieve it? Hopefully, the financial plan was built to withstand short term market fluctuations and reminding a client of this can bring reassurance. The above should help to get the client in the right mindset to complete a new risk profile questionnaire, without reacting to short-term panic brought on by the present situation. It’s important to remember that moving to a lower ATR will change the strategic asset allocation, therefore ‘locking in’ the loss by lowering the chance of gains. Staying invested at the current ATR, however, will give much more chance for the client’s portfolio to recover from the COVID-19 related market fall. If the client is still adamant that they want to lower their risk profile considerably, ultimately this is their decision, however it is best practice to document that you have had the above conversation and the dangers of lowering the risk profile in relation to achieving their goals.

The FCA confirmed at the start of April they were temporarily relaxing the rules surrounding notifying clients of a 10% drop in investments held with a Discretionary Investment Manager (DIM), in comparison to the value at their last periodic statement, and for each subsequent 10% drop thereafter. The FCA have confirmed they will not take enforcement action where a firm: • Has issued at least one notification to retail clients within a current reporting period, indicating their portfolio has decreased in value by at least 10%; and • Subsequently provides general updates through its website, other public channels (such as social media) and/or generic, non-personalised client communications. These communications should update clients on market conditions, explain how clients can check their portfolio value and invite clients to contact the firm if they wish; or • Chooses to cease providing 10% depreciation reports for any professional clients. The relaxation of the rules will apply for six months until 1st October 2020. Further guidance and support is detailed in our TS&R DIM Portfolio 10% Drop Update. DB Transfers – deferment on the proposed contingent charging ban The publication of the FCA’s final rules in this area have been deferred until the end of the year due to the pandemic. 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. Pension scheme trustees are also warning members about the risks of transferring out of their defined benefit scheme amid the COVID-19 crisis. Trustees have been asked by the Pensions Regulator to send a letter warning to DB members looking to move retirement funds, urging them to consider the decision carefully.

6 – EVENTS UPDATE

Tenet Online Events Programme 2020

As you are aware, due to current circumstances, we are unable to host our events at venues across the country, however, we will be bringing all of our events, scheduled to take place during this time, to you online.

SPECIALIST INVESTMENT WORKSHOPS ONLINE – Available on-demand These events focus on specialist investments and the value they can add to your business. Tenet will utilise the expertise of providers and fund managers, to create a valuable event; giving key industry insights, technical guidance and sales support. The purpose of these events is to provide a higher level of education, through the use of case studies and planning scenarios to provide you with a greater understanding of each product and a proposition’s place in the market. Length of Sessions: 30 minute structured CPD sessions and 5 minute elevator pitches

Length of Sessions: Fifteen minute unstructured CPD sessions from our lender partners, and 30 minute structured CPD sessions from Tenet adviser training and senior management Total CPD Available: 1 hour & 45 minutes unstructured & 1 hour structured Access Lend One Online events: http://webinars.tenetgroup.co.uk/lend-one-OD INVEST BUSINESS FOCUS EVENTS ONLINE – Available on-demand These events focus on investments and pensions, providing you with key updates on the market and the industry as a whole, including product development. The events are designed to meet advisers’ development needs and provide a valuable insight into the current markets. Length of Sessions: 30 minute structured CPD sessions and 5 minute elevator pitches Total CPD Available: 5 hours structured & 50 minutes unstructured Access Invest Business Focus Events Online: http://webinars.tenetgroup.co.uk/ BFE-Invest-1 LEND BUSINESS FOCUS EVENTS ONLINE – Available on-demand These events focus on mortgages and lending, providing you with key updates on the market and the industry as a whole, including product development. The events are designed to meet advisers’ development needs and provide a valuable insight into the current markets. Length of Sessions: 30 minute unstructured CPD sessions Total CPD Available: 3 hours unstructured Access Lend Business Focus Events Online: http://webinars.tenetgroup.co.uk/ BFE-Lend-1/register

We are pleased to still be able to support your development through these online events offering the same CPD that you would

expect to receive at our live events. Our online event programme includes

investment, mortgage and protection events. Our events programme moved online on 21st April, and, if you didn’t manage to view any of the online events live, those that have already taken place are now available to view on-demand, at any time. If you have a Focus Progress account, reflective statement documents can be downloaded from the online event pages, completed, and returned to events@ tenetgroup.co.uk. The events team will upload this, and allocate your CPD time, to your Focus Progress account. We have also re-vamped our Tenet Events App, to allow you to complete your reflective statement here.

Total CPD Available: 3 hours and 30 minutes structured & 35 minutes unstructured

Access Specialist Investment Workshops Online: http://webinars.tenetgroup.co.uk/ specialist-Investment-1 PROTECTION SEMINARS ONLINE These events will focus on the protection market. With Tenet and the industries focus in this area, they are designed to meet advisers’ development needs and provide a valuable insight into this market. All of the sessions at these events will offer IDD CPD. Our Provider partners will also look at other ways you can obtain further IDD CPD. Length of Sessions: A mixture of 30 minute, 15 minute and 5 minute IDD CPD sessions Total CPD Available: 2 hours and 35 minutes IDD CPD Access Protection Seminars Online: http://webinars.tenetgroup.co.uk/protection- seminar

INVEST ONE ONLINE – Available on-demand

These events focus on investments and pensions. The events are designed to meet advisers’ development needs and provide a valuable insight into the current markets. They will offer a variety of important information from a wide range of provider partners, Tenet’s Senior Management and Tenet Adviser Training. Length of Sessions: A mixture of 30 minute structured CPD sessions and 5 minute elevator pitches Total CPD Available: 4 hours and 30 minutes structured CPD & 45 minutes unstructured Access Invest One Online events: http://webinars.tenetgroup.co.uk/invest- one-2020 LEND ONE ONLINE – Available on-demand These events focus on mortgages and lending. They are designed to meet advisers’ development needs and provide a valuable insight into the growing lending market. The events will include a variety of niche and highstreet lenders, packagers and other providers who can help you develop further business opportunities. They will offer a variety of important information from a wide range of lender partners, Tenet’s senior management and Tenet adviser training.

BOOK YOUR PLACE TODAY You can book our events online – simply visit: https://events.tenetgroup.co.uk/ADP2020 If you have any queries, please call the events team on 0113 239 0011, extn. 8132 or email [email protected]

EVENTS UPDATE – 7

CPD WEBINARS - WEBINARS AVAILABLE TO WATCH ON-DEMAND Get your 30 minutes of CPD for each webinar you view! Starting in February, Tenet host a series of 10 webinars on the morning of the last Friday of every month 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. So if you need to top up your CPD, take a look at the webinars that are available. All you need is a device to view it on and your headphones!

NO 1: Bank of Ireland ‘Serving the complex customer’ Presented by Lauren Wiles, National Account Manager on 28th February 2020 What the webinar covers…

NO 3: LV= - ‘Change is the only constant: Are you generation future-proof?’ Presented by Marcus Primhak, Business Protection Product Manager on 24th April 2020 What the webinar covers… Baby Boomers, Millennials, Generations X and Z. The descriptions have changed, but so has the whole financial landscape. Do we understand the new groupings, along with their aspirations, needs and behaviours? More importantly, what are the implications for providers and advisers in responding to this new reality? Things will certainly change for product design and engaging with and servicing clients’ needs. http://webinars.tenetgroup.co.uk/webinar-3-2020 WEBINARS COMING SOON.. We recommend registering for all the webinars, then opt out as and when, if you are not available or the content is not relevant. Date Provider 26/06/2020 Zurich 31/07/2020 The Exeter

The typical mortgage customer is changing. Lenders are seeing more and more cases of complex income, such as contractors, professionals and self-employed workers that may not work a standard 9-5 role. This webinar will take a look at the 2020 landscape and how lenders, especially Bank of Ireland UK, can help with this changing market. http://webinars.tenetgroup.co.uk/webinar-1-2020

NO 2: Just - ‘Technological Developments – A new approach to retirement income’ Presented by Karl Steadman, Retirement & Later Life Specialist on 27th March 2020 What the webinar covers… The combination of changing advice models has led to greater adoption of technology and platforms. Meanwhile, freedom and choice has led to a more scientific view of retirement income. What does all of this mean for the way guarantees are put in place and the interaction with other funds and assets? http://webinars.tenetgroup.co.uk/webinar-2-2020

28/08/2020 Unum 25/09/2020 Vitality 30/10/2020 Precise Mortgages

To register for any of these webinars visit: https://events.tenetgroup.co.uk/tenetcpdwebinars2020

8 – SPECIAL FOCUS

Opportunity knocks at the letting door! Protecting an underserved renting market

Financial protection discussions don’t normally crop up unless triggered by a life event. Research from Sainsbury’s Bank revealed that buying a house is the main reason people decide to take out protection, with 34% of those surveyed citing this as the main reason 1 . Whilst it’s great that this type of life event leads to people thinking about their protection needs, this trigger moment may not ever be sparked for some. There are many adults who openly acknowledge the likelihood of them ever owning a property will only occur upon the death of a family member and the inheritance that could be left to them. As such, these households may only ever own a property much later on in life, or in many cases, will never be homeowners at all.

Research from Legal & General highlights that by 2025 50% of adults under the age of 40 are expected to rent privately. The same research study also indicates that by 2023 nearly a quarter of UK households will be made up of those who are renting their home 2 . This increase is also supported by the latest >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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