Head of tax and financial planning Colin Jelley says advisers with clients who are struggling to meet income objectives should review the tax structures of their investments to ensure they are getting the best returns.
He says: “Rather than one wrapper, it might be that they offer a mix of collectives and bonds. We are also seeing it in pensions and inheritance tax planning – advisers might put a bit of money in a discounted gift trust, a bit in a loan trust and hang on to the rest.”
Jelley believes that repackaging portfolios and building bespoke advice for clients should be part of the transition towards a recurring-income model and lends itself well to the growing platform market.
He says: “In the transactional world, it was difficult to see things in one place but platforms facilitate this and allow you to see and manage portfolios in their entirety.
“It is a competitive market for advisers and if they want to retain and acquire clients, they must take a step back and think about what solution offers the best outcome.”