Raymond James

Highlighting best practice as a representative in The Parliamentary Review

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 Raymond James is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

www.kingstreetwm.com

THE PARLIAMENTARY REVIEW
Highlighting best practice
28 | RAYMOND JAMES KING STREET
Mark Parello, Managing
Director
Based in central Manchester, Raymond James King Street
provides financial coaching and investment management
solutions for institutions, trustees and private individuals.
Managing Director Mark Parello tells
The Parliamentary Review
about their rapid progress in recent years.
Raymond James King Street was created with two core goals in mind: to force change
and improvement in the financial services industry, and to provide the tools, education
and coaching to enable as many people as possible to become financially independent,
remain financially independent and improve their lives. With 20 years’ experience in private
banking, financial planning and discretionary investment management I have listened to
clients from across all these service levels who find our industry confusing, complex and high
cost. In many instances, a product was “sold” to them with no real planning to back it up.
We challenge ourselves daily to solve these issues and challenge the status quo. The
way we do this is through four core principles, which form our DNA and guide our
culture and decision-making. We do have regulatory principles we adhere to; however,
in addition to these we employ the principles of long-term thinking, radical truth,
radical transparency and radical open-mindedness. By employing these principles in our
dealings with clients and our staff, best practice becomes a benchmark to be improved
upon – and we constantly strive for excellence.
Client and adviser successes
By being radically transparent and truthful with our fees and the fees of our competitors, our
client advisers have been able to illustrate how we are typically saving clients between 0.5
per cent and 7.5 per cent per year. Many individuals were completely unaware of this and
of the impact it has on their future wealth. We have taken the decision to stop upfront fees,
ad hoc fees or exit fees, which has led to clients being better off financially. Our advisers
win, on average, four times as much business a year as the industry-average adviser.
Organisational and cultural success
Having been radically truthful and transparent in everything we do, MiFID II had very
little impact on the way we operate. Because others are being forced to become more
transparent, this has led to us winning more business as a result. In order to manage
a successful business, it helps to think of oneself as an engineer and the business as
a machine. We are constantly looking for ways to improve the machine and make it
run more smoothly, which involves finding the right people to take ownership of and
manage their roles within the business.
The principles of radical transparency and radical truth have benefited our organisation
as they allow employees to rate the strengths and weaknesses of others within the
organisation. It forces individuals to be honest and it allows us to put the right people in the
right roles. For example, you wouldn’t want an introvert who is great with numbers working
in the sales team. It would probably not lead to great sales statistics; however, they might
make a great analyst. We are truthful about our employees’ strengths, and therefore it
becomes easy to build teams with complementary skills and find the right individuals where
AT A GLANCE
RAYMOND JAMES KING STREET
»Managing Director:
MarkParello
»Founded in 2015
»Based in Manchester
»Services: Unique wealth
management services for
institutions, trustees and
private individuals
Raymond James King
Street
29RAYMOND JAMES KING STREET |
BEST PRACTICE REPRESENTATIVE 2019
gaps may exist. Our investment committee
is a fine example. As we have access
to over 80 analysts globally, we need a
team of individuals who ultimately decide
what goes into our clients’ portfolios. The
investment committee consists of three
CIOs, led by Matthew Singleton. The
expertise of the CIOs is complementary,
but with sufficient knowledge and strong
personalities to challenge each other’s
ideas – with new ideas and those we
continue to hold in our portfolios.
Client communication
We communicate with clients face to
face, via post, electronically and by phone.
Procedures are in place to ensure all
communications with clients are clear,
understandable and compliant. Much
of the work involved with on boarding
clients is done face to face. Providing
clients with an education is the start of
the client journey, which is more easily
conveyed in person. Many individuals
won’t understand the differences between
private bankers, financial planners and
investment managers, and the service a
client receives will differ hugely depending
on who they are meeting and dealing with.
In our opinion the advice process should
begin with a solid financial plan – without
one, it is very difficult to suggest suitable
investment recommendations. All client
reviews are also carried out face to face.
Challenges faced
The industry as a whole has faced a
number of challenges in the last 12
months, including GDPR and MiFID II.
Many hours were spent on understanding
exactly what the implications of this
legislation would have on our business.
The changes we had to make, however,
were relatively small, having already
employed the principles of radical truth
and radical transparency.
The biggest challenge we face on a
continued basis is finding good people
who share our principles. I believe our
industry suffers from a terrible reputation,
and I can understand why. Unfortunately,
many members of our industry only see the
numbers. What really matters is the people
behind the numbers – our clients. Our
job is to help them meet their goals and
aspirations – that’s why we have a job. We
should be grateful and look after our clients
as best we can. By creating a business
that operates solely on the principles of
radical transparency and radical truth, the
business will have longevity, will scale and
will force change within the industry.
Organisational strategy
We have a very flat hierarchy structure,
where the managing directors of each
department are entirely responsible for
running their business. I meet weekly
with the heads of each department to
discuss the activity of the previous week,
the current week and the following
week. We also hold separate weekly
investment committee meetings.
Currently we act for business owners,
those who have sold business and high-
earning professionals. The next step
is to create a structure where we can
distribute our investment proposition to a
wider market. We aim to achieve this by
increasing the number of financial planners
within our business, creating an external
sales team and establishing a platform to
educate and create wealth for individuals
who probably don’t have access to face-to-
face advice. We are hugely positive about
the industry and the future of our business
within the industry. I think the industry
is open to disruption and change, which
creates opportunity. We look forward
to the future and continuing to make a
difference to an ever-increasing audience.
The three directors
We have a very
flat hierarchy
structure, where
the managing
directors of each
department are
entirely
responsible for
running their
business

www.kingstreetwm.com

This article was sponsored by Raymond James. The Parliamentary Review is wholly funded by the representatives who write for it.