25RJB FINANCIAL SERVICES |
BEST PRACTICE REPRESENTATIVE 2018
Managing with what we’ve already got
and maintaining our current standing
is a realistic, rewarding place to be.
Regulatory ups and downs
We have recently become directly
authorised by the FCA, rather than
being an appointed representative. This
has generated an extra workload in
getting used to the new requirements.
Instead of relying on due diligence
from others, we have to do a lot more
ourselves. On the upside, however, we
now have a direct relationship with
the FCA, which has its own benefits
and drawbacks. A clearer, more open
dialogue is useful, but it comes at
the cost of more work. It’s a far less
prescriptive way of doing things with
the emphasis being on principle-based
regulation.
GDPR, however, is, by definition, an
extra workload. Clients don’t pay extra
for it, and it takes up more time that
we could otherwise spend with clients.
It may be well-intentioned. There
isn’t any perceived benefit for most
clients, or, at least, a very minimal
benefit. It just provides us with further
administrative duties in the short term.
Difficult terrain
New FCA directives and discussion
documents are always an issue. I can’t
imagine a time when they turn around
and say that they’ve got too many
staff and regulation, and start cutting
back – we’re always more likely to get
more than less. It keeps you on your
toes. Government policy is the same;
for instance, if inheritance tax suddenly
vanishes – an extreme example – there
would be no inheritance tax planning,
and we would lose a massive chunk of
our business. Changes in legislation are
always a challenge.
Another real issue is education. A lack of
it can mean people take the burden on
themselves and refuse to go to advisers
or accountants. Quite often, they make
mistakes that could be fixed easily just
by speaking to somebody. For example,
with freedom of pensions, this can be
a real danger. People occasionally need
protection from themselves – in the
case of gamblers or addicts, short-term
decisions can detrimentally affect long-
term logic. We will advise and advise
and advise, but sometimes, people
will just make those decisions anyway
when they’re desperate.
Finally, we are starting to see the effect
of extended retirement age. People
are living longer, but not getting any
healthier – when they retire at 65,
without access to a state pension or
the ability to work, they can’t bridge
the gap. Without plans or savings it’s
difficult. Of course, there’s a reason
behind it, and we recognise that the
state pension is an expensive facility to
maintain, but more and more people
are working beyond age 65 than ever
before.
The future of the business is unknown
at this stage. It’s difficult with a lifestyle
business to sell it or pass it on. Naturally,
we have become incredibly protective
of our clients, as we believe we know
how to deal with them. It’s not whether
or not they need you as much as it is
whether or not you need the clients;
but at the moment, the future is
uncertain. We want to wait and see,
and keep doing what we’re doing – it’s
profitable and it’s rewarding.
The Boston Stump
Managing with
what we’ve
already got and
maintaining our
current standing
is a realistic,
rewarding place
to be
“
“
Rt Hon The Lord David Blunkett
Rt Hon The Lord Eric Pickles
