
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
“
“