7 New Year resolutions for advice firms

For financial professionals only

Want to get 2020 off to a positive start? Here are 7 hot topics that could set you and your clients off on the right foot.

1. SMCR – Tune up your website

The new Senior Manager regime came into effect in December and the FCA stopped approving individual CF30s. This will make it harder for the public to check if someone really is a legitimate financial adviser.

Time to make sure your firm’s website clearly demonstrates your professional credentials and proven trustworthiness.

2. Make 2020 that little bit greener

Everyone is wanting to do their bit to save the planet so investing in ESG solutions is an obvious step. Parmenion have a unique range of forty Ethical portfolios which can be recommend to your clients. These extend from Risk Grade 1 to 10 but you also have a choice one of four increasingly restrictive levels of engagement, from Responsible Leaders to Traditional Ethical.

3. Tricky markets? Take a look at Conviction

Parmenion’s Conviction portfolios offer our best thinking about which style of fund – active or passive – in each asset class gives the best value for money.

Every month, we look at the risks each sector faces and decide how to capture upside – and restrict downside – most cost effectively.

Right now, the broad exposure of passive bond funds to credit risks from the very good to poor or bad means we tend to favour the more selective active bond managers.

4. Look out for Investment pathways – coming your way in July 2020

Investment pathways are the FCA’s latest tactic to get the public to do sensible things with their pensions – rather than spend it fast, keep it in cash, pay unnecessary tax or do nothing at all.

Pathways will ensure that non advised clients have at least four sensible options which may at first sight seem like a cost effective answer. Our Income Manager Tool (IMT) can help your firm demonstrate the value of personalised advice versus a generic approach.

5. Risk Grades – proceed with caution!

Rory Percival’s landmark ‘Assessing Suitability’ papers are now nearly ten years old – but be wary of embedded systematic risk profiling.

Distinguishing how worried someone is about risk and loss and encouraging them to make an informed choice of the appropriate level of risk to achieve their goals are equally important especially in drawdown.

6. Re-imagine annual reviews

Inspiring action in annual reviews comes from clear reporting, a greater emphasis on client goals and objectives, and visualising changes in longevity and investment risk.

The best Plan B in retirement is a dynamic, flexible Plan A, adapted as circumstances change, with proper evaluation of the odds of success.

7. Don’t rely on averages

ONS life expectancy data can give significantly different results when compared with personalised data based on gender, health and postcode such as Club Vita. Why plan for Mr Average’s situation when a clearer, personalised view is available?

If you’d like to know more about any of these resolutions, get in touch with our Client Services team on 0117 204 7640. Here’s to a successful New Year.

This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.  

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