Accredited Financial Planning Firms Conference 2013

Transcription

1 Accredited Financial Planning Firms Conference 2013 Thursday 7 March 2013 VAT & financial services Richard Stradling Baker Tilly 1

2 VAT AND FINANCIAL SERVICES Richard Stradling Associate Director VAT AND FINANCIAL SERVICES A reminder the law EU legislation Directive 2006/112/EC, Art 135(1)(b)-(g) (g) UK legislation VATA 1994, Sch 9 Group 5 Item 6 The provision of intermediary services... (whether or not any such transaction is finally concluded) by a person acting in an intermediary capacity 2

3 VAT AND FINANCIAL SERVICES What are intermediary services? The bringing together of persons seeking to receive and persons seeking to provide financial services; together with The performance of work preparatory to the conclusion of contracts... Intermediary services do not include; Market research Product design Advertising Promotional services VAT AND FINANCIAL SERVICES The impact of RDR HMRC s view 1. gather information about the customer (fact-find) 2. carry out research to find suitable investment options 3. provide the customer with reports, financial health-checks, forecasts 4. recommend specific investment products to the customer, including prices 5. act between the product provider(s) and the customer with a view to arranging a sale 6. where applicable, ongoing review service, 3

4 VAT AND FINANCIAL SERVICES The impact of exemption No requirement to register unless making taxable supplies over threshold No recovery of VAT on costs Supplies to clients within the EU outside the scope of UK VAT Supplies to clients outside the EU outside the scope of UK VAT with recovery Where supplies are mixed, partial recovery of VAT on costs VAT recovery Partial Exemption methods VAT AND FINANCIAL SERVICES Richard Stradling Associate Director 2008 Baker Tilly UK Group LLP, all rights reserved Baker Tilly Tax and Advisory Services LLP, Baker Tilly UK Audit LLP, Baker Tilly Corporate Finance LLP, Baker Tilly Restructuring and Recovery LLP and Baker Tilly Tax and Accounting Limited are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. Baker Tilly & Co Limited is authorised and regulated by the Financial Services Authority to conduct a range of investment business activities. 4

5 PI insurance Jamie Newell IFA Solutions NOT ALL PROFESSIONAL INDEMNITY POLICIES ARE CREATED EQUAL A talk by Jamie Newell of IFA Solutions to IFP Accredited Financial Planning Firms 7 th March 2013 Hilton London Kensington 5

6 Changes to the marketplace 3 main providers of PII to Financial Planners have withdrawn from the market kt The purchase and provision of PII has become commoditised since the economic downturn The costs of implementing RDR Many PII providers know this!!! Changes to policy wordings Introduction of new policy language and terms Is your policy FSA compliant? Is your excess transparent? Are you fully aware of your claims notifications and conditions? Does your policy have a full insolvency exclusion? 6

7 Changes to policy wordings Introduction of new policy language and terms Is your policy FSA compliant? 7

8 Changes to policy wordings Introduction of new policy language and terms Is your policy FSA compliant? Is your excess transparent? 8

9 Changes to policy wordings Introduction of new policy language and terms Is your policy FSA compliant? Is your excess transparent? Are you fully aware of your claims notifications and conditions? 9

10 Frequently Asked Questions and Myths Claims made not losses occurring Limit of Indemnity costs inclusive Retroactive Date Product Exclusions UCIS 10

11 IFP Accredited Financial Planning Firms PII Facility via IFA Solutions Average Premium Saving 22.9% ClaimsNotification Clause FSA DIC Clause Transparent Excess Fully retroactive Pro bono work Regulatory Investigations Costs Newly Acquired, Merged firms auto included Refer to Policy Wording for full terms and conditions Platform due diligence Gillian Hepburn Platform People 11

12 Platform Due Diligence Nuts & Bolts What? How? Due Diligence Why? 12

13 What? Outcome and Application: Appropriate platform selection FSA Compliant Documentation Consistent application in the business Improved efficiency & control Reduced PI costs Increased Value Multiple Not: A provider booklet (although helpful start) A file full of FSA docs A decision based on the ranking tables Mobile phone/ purchasing a car? What? Is: Based on the way you wish to provide a client service A significant decision A robust comparison (based on knowledge & research) Selection (Primary/Secondary) or a platform review Why? FSA Comments: Clear segmentation of the client bank and effective matching of firm services and platform selection (following good due diligence) can be a beneficial approach (PS11/9) Market developments.mean periodic reviews may be required Very rare, if possible at all, that a firm could use a single platform for all of the investment business of all of its clients Key risk: firms failure to carry out adequate due diligence or align the platform with the client base Delivery of a High Quality Client Proposition: Client reporting Reports Reviews Investment proposition Why? Good business practice: Reduces business risk Right platform can improve processes, reduce time and support the proposition Significant costs to move Avoids fines (Moneywise) 13

14 How? Timing Initial platform decision Annually FSA good practice Business mergers New clients Change to proposition Market changes e.g. new entrants Strategic Filters e.g. Life Office v Independent Commitment and scale Referrals Dealing and custody only Support Online comparison tools Consultants Service provider How? Client Service Proposition: Influence of Segmentation Reviews and reports Additional services e.g. Tax planning Comparison of your functional requirements vs Platforms Define functional requirements H/M/L to deliver proposition Which platform best suits might be per segment? Charges? Investment Proposition: Models DFM (On or off platform?) Active v Passive Rebalancing ATR and Asset allocation Who owns the Client? Ensuring Alignment of Investment Tools and Solutions? Requirements for DFM Due Diligence? Is one Platform okay? Questions? On or off Platform Tools? Charges Comparison? What shape are YOU in? 14

15 Session three: Sustainable, profitable & predictable growth post regulation Daniel Richards Insight Marketing & YourIFA.co.uk 3 ways every firm here can protect clients and generate quality new ones... 15

16 Every firm can implement these ideas... 1) Website and blog 2) Mobile Websites 3) Referral generation Free 1:1 available no obligation, focussed on you, so you get best value... marketing.com ) Your website + I blog How does your website make you react? 16

17 Everyone can do these two steps Fundamental SEO to generate visitors to your website How to easily manage social media with the unique and proven I Blog We ve all been sold a myth... 17

18 What is Search Engine Optimisation? If they can t find you, they won t come. SEO basics a) page title b) meta description c) Keywords, h1 and h2 d) Google places 18

19 SEO every page on your website. a) Page Title b) Meta Description c) H1 d) H2 e) H3 f) Keywords in body If they can t find you; they won t come. 19

20 Now that I ve found you, what do I do? Converting visitors... Do s Soft Offers Meeting request with value Use forms to capture data Webinars Don ts XHave nothing XDistract XSend people off your site XHave out of date invitations X Complicate it Other ways to market... 1)PPC 2) marketing kti 3)Don t ignore offline marketing 4)Webinars 5)Backlinks 6)Social Media 7)I blogs 20

21 Are blogs really that important? A few facts: (courtesy of Hubspot s Marketing Benchmarks report) B2B companies that blog only once or twice a month generate 70% more leads than those who don t blog. Companies that increase blogging g from 3 5 times a month to 6 8 times per month almost double their leads. What is a Blog? 21

22 6 reasons to have a blog. 6 compelling reasons for the I Blog 1) It saves hours every week. One post updates everything including all social media and your APP 2) Increased traffic to your website 50% +++ 3) You are in control Content creation made easy 4) Full training free 5) Simple low cost purchase 6) Proven results + proven savings in operational time 22

23 Are all blogs the same? Here is a common mistake Oh! Here it is.... But it will not work like this 23

24 How it could be working. Gain difficult web rankings; easily 24

25 Increased traffic often by 50% or more! One post updates everything 25

26 One post updates everything Update Everything Including Your App 26

27 Google Alerts plus other portal s Plus many other industry specific sources in a few minutes searching... 2) Mobile Websites 27

28 Mobile websites for a changing world 50% of local searches are performed on a mobile device 183% increase in last 2 years in Europe for mobile share of web traffic 27% open rate from our last e shot! 327 empire state buildings every day! Find the people they know, that you want to do business with... 28

29 2 final ideas... Apps & Coffee! Custom Design Home Menu Calculators 29

30 The importance of coffee...!! 30

31 Turning conversation into currency We generate a return ONLY once the engagement goes offline. Therefore it is critical to have a defined & integrated offline strategy to get ROI from your social networking. Next Steps and Q&A... Free no obligation website, I blog or App demo from the comfort of your own desk Free 1:1 by phone for confidential, expert, no obligation review of your firms marketing kti danielr@insight marketing.com 31

32 Accredited Financial Planning Firms Conference 2013 Thursday 7 March