Amid all the doom and gloom hanging over the financial services sector, there are glimmers of encouragement.
Most of the low-cost endowments on our books are those in existence prior to our involvement with the clients in question although we receive copies of the various updates and reprojections issued by the life companies. As we all know, the latest round is more alarming than ever and in many cases quite unecessarily so, thanks in no small measure to the regime ensconced at Canary Wharf.
I thought we had a duty to our clients to explain the basis of these latest projections – not least because the FSA will not allow the providers themselves to do so – and set out their options for addressing any possible shortfalls of which they may be fearful. It presents a good opportunity to renew contact.
So far, no new business has resulted from these letters – and, no, we have not been recommending top-ups to existing policies. However, it was very nice to receive a visit from a pair of clients who said that of all the people to whom they have talked thus far, we are the only ones not pressing them to commit extra money either to the product they already have or to something supplemental to it.
Well, I replied, you know who you will be able to trust when you win the lottery. Hopefully, my day will come.
Julian Stevens WDS Independent Financial Advisers, Kingswood, Bristol