Broom Consultants Ltd

A Message from Lord Pickles and Lord Blunkett, followed by Broom Consultants Ltd's best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from Broom Consultants Ltd is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Rt Hon The Lord David Blunkett, MP

Rt Hon The Lord Eric Pickles, MP

THE PARLIAMENTARY REVIEW

Highlighting best practice

2| BROOM CONSULTANTS

Owner and Managing

Director John Broom

John Broom created a specialist group of firms in the personal

development space to create facilities that allow people and

companies to grow into market-leading financial advisers.

Based in Brentwood, he has operated in this sector for over

27 years. Not using a one-size-fits-all philosophy, his team

act as holistic general practitioners, establishing needs and

shortfalls, then cross-referring between four distinct firms that

provide specialist solutions as required. Owner and Managing

Director John tells the

Review

how this philosophy works and

how the growth of his companies allows them to manage over

£200,000,000 in invested assets, and employ 40 people.

I have established four distinct companies that work in very specific areas to ensure

clients receive comprehensive and expert advice from advisers specialising in a particular

aspect of financial services. Each separately operated model employs people of the

highest calibre who can focus on their area of expertise. This model came about when,

as a traditional IFA, I found that I was offering specialist advice to a developing network

of similar IFAs who wished to access my resources for their own clients. To avoid any

potential conflict of interest with IFAs referring to a company in the same field, I created

independent companies that would not conflict with the introducing IFAs, providing them

with compartmentalised services in specific fields.

Four distinct brands – four distinct services

Broom Consultants Ltd: Established in 1992 as an independent financial advisory firm.

Today we employ eight financial advisers, two mortgage-only advisers, with a further two

trainee advisers, working their way up via apprenticeships. A large administration hub

backs-up the advisers, providing expert guidance in SIPP and SSAS, personal pensions and

drawdown, life assurance and protection, savings, ISAs and investments, along with tax

planning and discretionary fund management solutions. This company identifies shortfalls

in our clients’ financial planning and looks to the general practice model which diagnoses,

prescribes and administers solutions that may include referrals to associated companies

which provide in-depth advice in specific areas.

Countrywide (SE) LLP: Financial adviser firms understand the importance of clients having

a current Will and the benefits of placing assets in trust during lifetime or on death. Many

IFAs, however, lack the time or systems to cover this in-house. We appreciated these

IFAs may not want to introduce clients to a rival IFA. Setting up the independent Wills

and Trust arm, with a Trust and Estate Planner on board, backed by a Wills and Trust

corporation, seemed logical. This offering was first established in 2006 as an in-house

resource. As a natural progression, Countrywide (SE) LLP was set up in 2012 as a regional

Wills, Trusts and Probate service to other independent adviser practices.

Developing systems that assist other IFA firms across the region to ensure their clients

receive full, holistic estate planning in an easily accessible manner. This approach has led

AT A GLANCE

BROOM CONSULTANTS

»Owner and Managing

Director: John Broom

»Founded in 1992

»Based in Brentwood, Essex

»Services: Financial advice for

businesses and individuals

»No. of employees: 40

Broom Consultants

3BROOM CONSULTANTS |

BEST PRACTICE REPRESENTATIVE

to excellent tax-efficient outcomes with no

fear of cross-selling for those companies

referring.

Pension Income Planning Ltd: Post pension

freedoms, I anticipated the broad demand

for defined benefit scheme advice in

relation to transfer or remain options.

Another specialist company, Pension

Income Planning Limited, was set up in

2015. Initially using in-house technical

expertise, we felt we could once again

offer a new bespoke service to our IFA

community. Anyone reading or listening

to the news will relate to stories regarding

these types of pensions. These have

become a hot topic in the industry. We

wanted to lead the way in getting correct

outcomes for clients. This company has

grown rapidly, serving IFA introducers

nationwide and now boasting eight FCA

recognised pension transfer specialists,

headed by a Fellow of the Pensions

Management Institute. The unique

approach to this complex area has led to

rapid recognition as a leader in the field

and appointment to a large IFA Network’s

national panel. Many IFA firms exclusively

use us for their defined benefit clients.

Brooms Payroll and Pensions Solutions Ltd:

Broom Payroll and Pensions was created to

provide advice and services for businesses

to meet their regulatory needs, setting up

auto-enrolment pensions and servicing

those employer pension payments via

payroll. This complements any IFA’s

offering, allowing a professional outlet

for customers in an area that is not strictly

within an adviser’s daily remit.

Regulatory challenges

We believe our success is largely down

to our unique business model. We are

expanding and foresee continued growth

as steady rather than rapid. Advisers across

the country face challenges from many

angles:

• Associated costs when employing new

staff can be burdensome. Therefore, taking

on specialist employees when the workload

is not guaranteed, is a financial risk.

• Ever-rising Professional Indemnity

premiums and other associated business

costs can mean less growth or lead to

increased fees, in turn, restricting the

general public’s access to quality advice

and, therefore, the consumers are being

penalised. This is at odds with the FCA view

that advice should be readily accessible.

• Americanisation of attitudes towards

claims has damaged the sector. Some firms

encourage claims of mis-selling based on

a scattergun approach. This is costing IFAs

time and money. Fortunately, the FCA have

recently created a system for regulating

claims handling firms, ensuring claims have

a valid basis.

These issues have a knock-on effect on

recruitment strategies. Negative portrayals

in the media result in fewer young,

qualified graduates wanting to join the

industry. Older advisers are leaving the

industry and fewer new businesses are

being established, compounding this

sector’s problems.

Solutions

• Concentrating specialists who work hand

in hand with other adviser firms reduces the

staff hiring needs when workloads may not

be guaranteed. Specialists working in one

company on specific areas develop more

in-depth skills and can constantly strive to

improve the offering.

• Systems and staff concentrated on a

specific market solution, allow introducing

IFAs to benefit from a pooled cost. It also

allows the public to access expert advisers

at competitive prices in areas that may not

be viable for their own trusted adviser to

offer.

• Targeted investment into bespoke

systems and people creates robust and

consistent compliance. This is more easily

obtained when a larger volume of business

is written in one specialist centre. Our

solutions relieve our introducers of the need

to develop expensive, complicated systems

and employing specialist skill-sets that may

only be needed a few times a year. Pooling

the work, benefits introducing adviser

firms and, most importantly, clients seeking

advice.

We believe

our success is

largely down

to our unique

business

model

“

The Parliamentary Review Publication, in which this article originally appeared, contained the following foreword from Rt Hon Michael Gove.

Rt Hon Michael Gove's Foreword For The Parliamentary Review

By Rt Hon Michael Gove

This year's Parliamentary Review comes at a momentous time for parliament, as we collectively determine the destiny of the United Kingdom.

On October 31, the UK will leave the European Union. The successful implementation of this process is this government's number-one priority.

Three years after a historic referendum vote, we will deliver on the decisive mandate from the British people. Trust in our democracy depends on it. Until that final hour, we will work determinedly and diligently to negotiate a deal, one that abolishes the backstop and upholds the warm and close relationship we share with our friends, allies and neighbours in the EU. But in the event that the EU refuses to meet us at the table, we must be prepared to leave without a deal.

As the Chancellor of the Duchy of Lancaster, it is my job to lead on this government's approach, should that scenario happen. Preparing for Brexit is my department's driving mission. But while I am leading this turbocharged effort, the whole of government is committed to this endeavour.

Ministers across Whitehall are working together to ensure that every possibility is considered, every plan is scrutinised and every provision is made. A daily drumbeat of meetings means that we are holding departments accountable, so that preparations are completed on time.

The chancellor has confirmed that all necessary funding will be made available. And we have mobilised thecivil service, assigning 15,000 of our most talented civil servants to manage our exit from the EU.

We will make sure that on November 1, there is as little disruption to national life as possible. Our trade relationships will continue to thrive, thanks to agreements with countries around the world worth £70 billion. Our country will remain secure, thanks to nearly 1,000 new officers posted at our borders. And the 3.2 million EU nationals now living and working among us can remain confident, with absolute certainty, of their right to remain in the UK.

Above all, our goal is to be transparent. Soon, we will launch a public information campaign so that citizens, communities and businesses are ready and reassured about what will happen in the event of “no deal”.

In my first few weeks in this role, I have travelled to ports and tarmacs, borders and bridges, all across the UK –from the seaside of Dover to the rolling green hills of County Armagh. I have heard from business owners and border officials, farmers and hauliers. They are ready to put an end to uncertainty. And they are ready to embrace the opportunities ahead.

Our departure from the EU will be a once in a lifetime chance to chart a new course for the United Kingdom. Preparing for that new course will be a herculean effort. But this country has made astounding efforts before. We can do it again.

Rt Hon Michael Gove
Chancellor of the Duchy of Lancaster