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Lee Jones speaks to Willie Mowatt about setting up an IFA firm and how once being on the other side of the fence with NU is working in his favour
For Willie Mowatt, moving from Norwich Union to become an IFA focused on retirement planning was a natural progression.
Mowatt says: “At Norwich Union, we did a massive amount of research into people going into and people at retirement. The whole topic is fascinating for me as it is a social problem, not just a financial one. But we were trying to concoct all these solutions for customers and, putting myself in the customers’ shoes, it felt like I didn’t want just one provider putting together a solution for me.
“I would want the best of all the retirement solutions out there and that is an IFA.”
Mowatt, former NU director of marketing for protection, annuities and equity release, saw an opportunity to move from the provider world, where he had worked at designing financial products for 18 years, to the world of the IFA. He left NU in July 2008 and set up his own IFA business, which launched at the start of last month.
He says: “There was a bit of a change-around at NU and the opportunity came up to move on. Some of the stuff I had been doing at the firm woke me up to the opportunity of becoming an IFA. From my position at NU, I was seeing an emerging problem that people were not receiving enough advice for their retirement.”
Mowatt found it easy enough to become qualified - he is a trained actuary and achieved his PFS level 3 without any problems. He is presently earning his diploma in readiness for the RDR deadline. His only criticism of the process is that he felt as though the exams had not fully prepared him to sit down and advise.
A better understanding of how IFAs operate on a day-to-day basis would really help providers
He says: “I think the FSA should be trying to offer more ‘at work’ experience. Rightnow, it is too weighted on the theoretical side. I was going from working for a provider to giving advice so I was not very clued up. The main difficulty for me was how you go from not having advised before to getting out there and actually advising - there aren’t many routes open to do that.”
Mowatt felt uncomfortable asking IFA colleagues to allow him to learn the trade in their offices but, after talking to some distributors, he chose the SimplyBiz programme that allows newly-qualified IFAs to join an existing firm, train and then move on with a newly acquired client base.
He says: “The most attractive route was with SimplyBiz. They find you an IFA and you are there to become confident. I really struggled to find that. Other groups were willing to help but SimplyBiz was the most official.”
So now, just over a year after leaving NU, Mowatt has successfully launched his retirement planning IFA, Mowatt Financial Planning, and thinks his provider experience is already giving him some advantages.
He says: “I have been used to working through efficient provider processes and controls and have adopted that end-to-end process in my business, using the right risk parameters. A lot of IFAs are still operating with these mad paper-based, inefficient systems.”
Mowatt complimented some providers for offering services and technology to help him put his “big business” processes into action but feels like too many of the bigger providers are not listening to the needs of the IFA.
He says: “Providers need to get out a lot more and try and understand the IFA market. Looking back, I was guilty of that too. A better understanding of how IFAs operate on a day-to-day basis would really help providers. The sales consultants will know how things work but, as you get into the head office area and product development, that dilutes out.”
Now he is on the other side of the fence, Mowatt admits that he sees the difference between providers. “Those who are focused on the IFA market can be felt - how they deal with you, what they have on offer. I think it is a sizeable thing.”
When it comes to retirement planning solutions, Mowatt also thinks the providers have something to learn from advisers and the trade bodies. He says: “I think the big providers do understand the issues facing the UK’s aging population but the problem is that they are businesses and all have their own agendas and they are going to bang their own drum. So you need the trade bodies to make sure that the overall picture and direction is right.
“When I was at NU, we were trying to focus on the 55 to 60 market but that is difficult bec-ause you can help them a lot more if you catch them earlier. I offer people help from pre-retirement right through the retirement journey, which is why I would consider my business holistic but with a focus on retirement planning. Like me, retirement product providers should be aiming younger.”
Mowatt admits that providers are creating better products so as to help people before they get to retirement age but thinks ultimately it is the job of the adviser to prepare people for their autumn years.
He says: “It’s about helping people in the journey to become financially independent earlier to help them get on track for retirement. The providers want to understand the customer but it is the IFA that knows the customer and can bridge that gap.”
A better understanding of how IFAs operate on a day-to-day basis would really help providers
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