View more on these topics

Simon Chamberlain: Why Succession is changing its structure

Customers deserve a thorough individual assessment

As we come down to the last six months before the RDR, there are still many decisions to be made by many wealth managers. The decision over independence and restricted is the main one but there are other decisions for firms like Succession over the nature of our relationship with the client and the use of platforms in the future.

If you consider what is best for the client before each decision is made, then the answers become clear. Our key objective is to deliver financial planning to the clients of our member firms and help our members deliver that service in the most cost-effective and professional way possible.

That is why we see platforms and fund management as pure commodities. Succession will move its relationship from being a white-labelled distributor of platforms to becoming a white-labelled operator and changing the relationship held historically. The benefit of this is we will use our volume in the market-place to drive down the cost of fund management on behalf of our clients through the use of our platform and we will drive down the cost of technology by using our size and scale in the market to benefit our member firms and clients. I am happy for technology providers and fund firms to battle out the price war on these services and Succession will continue to observe that war and choose the best solution for our clients.

There has been much said about what the FSA will and will not allow but it should be what we as advisers do. In Succession’s case, every client is individually assessed and we would hope that would lead to a majority of clients needing a very similar solution but the world is made up of very different people and there will always be reasons to deviate from a central model. No client in a Succession firm will ever be shoehorned into any particular solution. This is equally true with the debate on independence versus restricted.

We believe there is a misunderstanding over the requirements of being independent and restricted, in that we believe every client should be assessed as if they were in a whole-of-market proposition. All that “restricted” refers to is a limitation of product ranges that will be made available to clients at the end of that analysis. This will mean if you are restricted you will be turning clients away that do not fit your central proposition. I cannot see how that benefits our members’ client base, which is why our investment proposition will remain independent and whole of market.

It is important for each firm to have a core proposition to offer clients. It is impractical to believe advisers’ client bases will be spread across many platforms, as, in a majority of cases, history shows circumstances are fairly similar.

But this can only be ensured by a proper individual assessment for every client. This should not be done as a result of the RDR but because it demonstrates a respect for the client you are dealing with.

Simon Chamberlain is founder of Succession Advisory Services


Advisers could face having to pay charges

Platforms will move to billing advisers for their services in the future rather than the current arrangement where clients pay the platform charge, according to Nucleus and Transact. Speaking at the Marketforce and Institute of Economic Affairs conference in London last week on the future of life and long-term savings, Nucleus and Transact agreed that […]

MPs ask what is the point of MAS?

MPs have launched a stinging attack on the Money Advice Service, accusing it of “scrambling around” for a purpose to justify its budget and losing its direction. During the committee’s first evidence session for its inquiry into the service last week, Labour MP George Mudie attacked the MAS for lacking a purpose at a time […]

MM Profile: Bob Freeman

Voyant UK’s chief operating officer has helped adviser firms transform their businesses with financial planning software but warns against becoming over-reliant on technology.

The Technical Quiz- June 21

To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions QUESTION 1 From a tax standpoint, what is the major advantage for an investor of a unit trust over an investment bond? A) The rate of tax imposed on the underlying income of a unit trust […]

Tax allowances and exemptions

Helen O’Hagan, Technical Manager at Prudential, looks into the planning strategies that can deliver considerable tax savings for your clients. Inheritance tax (IHT) Consider Margaret, featured on our Planning Matters family hub, who is a sprightly eighty year old with four children and several grandchildren. She’s recently been widowed and IHT planning is high on […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm