View more on these topics

&#39Philanthropy is key to building a good reputation&#39

Providing advice on making tax-efficient donations to charity can help IFAs build their reputation with clients, according to experts.

Speaking at a seminar hosted by The Giving Campaign in London last month, Barclays executive director Heather Maizels, Rockefeller & Co managing director Kathryn McCarthy, Capital Guardian Trust Company president John Emerson and personal investment counsellor Bente Strong put the case for IFAs to prompt clients about giving to charity.

This is tax-effective for the clients and can also benefit the IFA, as it builds a personal reputation as a trusted adviser and not just a product salesperson, the seminar heard.

The Giving Campaign says the tax relief on charitable donations can be significant. For example, if listed shares are given to charity, full income tax relief is available. This would mean that if£1,000 of shares were don-ated to charity by a higher-rate taxpayer, then £400 income tax relief would be available and no capital gains tax would apply.

The organisation says the UK is well behind the US in encouraging donations. Its research shows that 90 per cent of financial advisers in the US raise the issue of philanthropy when discussing wealth management with their clients but only 18 per cent of UK-based advisers do the same.

The Giving Campaign has been established to combat this trend and to encourage a culture of giving in the UK. In conjunction with the FSA, it has launched a guide to tax-effective giving for financial advisers that it hopes will encourage them to advise their clients on the tax implications of charitable donations.

Maizels says: “Our business is about enjoying wealth and passing wealth on to younger family members and chosen causes.

“We see philanthropy as a strategic asset management tool in an overall wealth management strategy.”

Recommended

Regulation set to force rethink for small firms

Regulation will hit many smaller players in the mortgage market, fears MCCB chief executive Luke March.At the BSA conference, March revealed that in 2002 there were 7,814 firms with only one member of sales staff. He predicts these will become unauthorised introducers of new business, leave the market or join mortgage networks.March said the demands […]

Selestia takes Sipp service on the road

Fund supermarket Selestia says four more funds are joining its platform, bringing the total to 384 from 47 providers.The funds are Aegon&#39s European bond fund, First State&#39s corporate bond and cash funds and Morley&#39s higher-income property trust.Selestia is also going on the road to promote its expansion into the Sipp market with its IFA partner […]

IFAs on fast track for mortgage regulation

IFAs will be fast-tracked thr-ough the application process to become regulated to give mortgage advice, according to the FSA.FSA manager of the mortgage policy team Susan de Mont said a more “streamlined” process is being designed for IFAs than for non-regulated mortgage brokers.She said the FSA is already familiar with IFAs&#39 profiles and so will […]

20 pc of insurance brokers could go says Bankhall

Bankhall has estimated that up to 20 per cent of general insurance intermediaries could go out of business once statutory regulation begins on January 15, 2005.The IFA support services group says that one in five firms will fail to meet the requirements when they apply for FSA regulation beginning next year.However, Bankhall says the gap […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment