Embed Size (px)
Citation preview
Marketing material for professional investors or advisers only.Marketing material for professional investors or advisers only.
Keith Hare, Corporate Development Director
Best Practice – To 2020 and Beyond
Best Practice Quarterly Meeting
December 2019
Thank you!
Our Vision – Since 2003
NO COMPROMISE
09/12/2019
4
Key drivers in our industry
5
Move fromProduct / Investment Sale
to Value Proposition
Increasing Regulatory
Burden
Need for Structured Succession Planning
Embedding Digital Advice is
becoming critical
Group5 Year Focus
1. Help existing firms grow and
prosper
2. Recruit high quality firms into
Best Practice
3. Facilitatenon-disruptive
succession planning for BP Member firms
4. Drive innovation and
automation through
technology
5. Continue to scale the
business in the right way
6. Build and grow
innovative investment solutions
Benchmark Group Strategy
5 things financial planners are losing sleep over(and why you shouldn’t!)
Opportunities and challenges for the next 3 years
Better marketing to existing client bank Buy another business / book of business Defend against ‘robo-advisers’ / D2C Improve financial management and controls Improve relationships with professional connections Improve the overall client experience Spend more time advising Join up the technology dots Manage and build the firm’s reputation Manage cash more effectively within the business Manage growth Mandate common processes throughout the firm Move to fixed fees Protect against market volatility Recruit new advisers Recruit and retain the right talent Reduce risk and uncertainty in the business Selling the business (or positioning for sale) Stay ahead of the game Streamline the investment / risk process Sustain or increase average fee levels Regulatory pressures
Opportunities and Challenges for the next 3 years VitalVery
ImportantQuite
Important
1 Stay ahead of the game 7 8 2
2 Make me look great in front of the client 3 11 3
3 Recruit and retain the right talent 5 6 1
4 Manage / build the firm's reputation 2 11 3
5 Mandate common processes throughout the firm 4 6 5
6 Sustain or increase average fee levels 3 8 4
7 Join up the technology dots 2 9 4
8 Better marketing to existing client bank 1 11 1
9 Streamline the investment / risk process 1 10 5
10 Manage growth 2 7 511 Reduce risk and uncertainty in the business 1 9 4
12 Recruit new advisers 4 3 2
13 Improve relationships with professional connections 3 3 5
14 Protect against market volatility 0 7 6
15 Spend more time advising 1 4 7
16 Defend against "Robo-Advisers" / D2C 0 4 6
17 Improve financial management and controls 1 1 8
18 Move to fixed fees 0 3 3
19 Buy another business / book of business 1 1 3
20 Manage cash more effectively within the business 0 2 3
21 Selling the business (or positioning for sale) 0 1 7
Opportunities and Challenges for the next 3 years Vital Very
ImportantQuite
Important
1 Stay ahead of the game 7 8 2
2 Make me look great in front of the client 3 11 3
3 Recruit and retain the right talent 5 6 1
4 Manage / build the firm's reputation 2 11 3
5 Mandate common processes throughout the firm 4 6 5
6 Sustain or increase average fee levels 3 8 4
7 Join up the technology dots 2 9 4
8 Better marketing to existing client bank 1 11 19 Streamline the investment / risk process 1 10 5
10 Manage growth 2 7 5
11 Reduce risk and uncertainty in the business 1 9 4
12 Recruit new advisers 4 3 2
13 Improve relationships with professional connections 3 3 5
14 Protect against market volatility 0 7 6
15 Spend more time advising 1 4 7
16 Defend against "Robo-Advisers" / D2C 0 4 6
17 Improve financial management and controls 1 1 8
18 Move to fixed fees 0 3 3
19 Buy another business / book of business 1 1 3
20 Manage cash more effectively within the business 0 2 3
21 Selling the business (or positioning for sale) 0 1 7
12
Demonstrating your value
Advice Platform Discretionary Management
Asset Management Product
The Financial Planning ‘Supply Chain’
RDR has moved control in this direction
Trust and integrity
30%
Knowledge and professionalism
21%
Providing good investment
returns20%
Simple fees / I know what I'm
getting11%
Everything else18%
Sources:Investec Wealth Annual Survey 2016-19M Kitcses Annual Client SurveyVanguard Annual Adviser Survey
What do clients value most?
“Top Down” vs“Bottom-Up” Value
15
Your Time
The Financial Plan
Fee Structure
Product and Investment Advice
Culture / What We Stand For
You / Your Firm’s Knowledge and Expertise
Being a “FinancialLife Coach”
Wealth & TaxManagement
Source : Money Marketing / Canada Life, Dec 2019
1. Compliance risk – 72%2. Economic risk – 50%3. Time management – 47%4. Cyber security / Crime – 38%5. Cost disclosure / Margins – 36%6. Managing client expectations – 36%7. Legal risk – 34%8. Operational risk – 32%9. Staffing and retention – 25%10.Competitive risk – 17%
18
“The compliance function operates within anticipated and acceptable tolerances, is producing appropriate outputs and is managing the risks of the business in line with the
business plan risk profile.”
James Lasenby, Compliance Director
Keeping pace withtechnology
21
Does size matter?*
* from a technology perspective
22
23
Making the best use of your most precious commodity
Ensuring your clients are in safe hands
09/12/2019
27
Adviser demographicsin the UK are interesting…
Sell? Stick around?Appoint a successor?
For any selling firm, this is their retirement plan…
There’s lots of cash in the market…
(For now)
Firms are being shown a lot of love
Selling an advice business is a big, complex, potentially confusing decision
Timing is everything!
Many firms look to sell at the wrong time
“Don’t come in here and call my baby ugly…”
Lack of client disruption should be paramount
Cultural alignment equally so…
Our commitment to you
38
01 Best Practice will be the primary focus of Benchmark group’s future strategy
02 We will strive to communicate more effectively with you
03 2020 will be the year we get back on the front-foot from a technology perspective
04 We will focus on bringing new services and greater support to help you prosper and grow your businesses
