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What Will 2015 bring?

£1 million for life?

finanCial SerViCeS teChnologY

07 16 22

As the New Year begins you may be considering what 2015 will bring and how it will affect your business. Turn to page 7 to read an overview of what it may look like.

Another way to develop your business is to maximise the technology available to you, something which LifeQuote (page 10) and Toolbox (page 27) can support you in doing. You can also read more about financial services technology on page 22.

But what about your clients’ businesses? The Hub can help you to provide tailored employee benefits packages to suit all business sizes. To find out more, turn to page 04.

Thank you to all of those who attended Personal Touch LIVE and we hope you all enjoyed the conference and gala dinner. Turn to page 14 to relive our flagship event.

We have a programme of exciting events lined up for this year, designed with all our members in mind, and I hope to see you at one soon.

Kind regards

Jane Cross Chief Executive Officer

Welcome…to the February edition of Personal View.

PersonalTouchFinancialServices @ptfspersonal-touch-financial-services-ltd

it’s good to be social!To enter our competitions, receive event updates and more connect with us on:

What will 2015 bring?

across the board

how lifeQuote can work for you

interest-ing rates

member Zone


iSa Season

Your Portal

recognising Quality

financial Services technology

root Cause analysis: Desirable Quality advice

tools for the job

04 14

2 | PerSonal VieW febrUarY 2015 | 3

increasing your business client offering

Personal touch liVe 2015

07 08 10 12 1316

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the hub can offer a review for your clients who own their own business. it can be in a singular product area or we can even build a full employees’ benefits package.

There are 3 key areas that we can offer support for, including private medical care (PMI), auto-enrolment (pensions) and death in service (life assurance).

Private medical Care (Pmi)This type of cover provides employees with a valuable benefit where they can utilise private medical care. It ensures that they avoid NHS waiting times, giving them quicker diagnoses and treatments. As a result they will be able to return to work quicker, which will help to avoid a reduction in productivity for your clients’ businesses.

Healthcare and wellbeing benefits can be part of a long term strategy to improve the productivity, engagement and care of your clients’ employees.

auto-enrolment (Pensions)Since the government launched the auto-enrolment scheme, employers now have to provide a workplace pension scheme for their employees to join. This is designed to support their employees in saving for their retirement. If your business clients haven’t made arrangements yet, our specialists in the Hub can handle the whole process on their behalf and also provide ongoing servicing of the scheme.

Death in Service (life assurance)As employers, your clients can provide a death in service benefit. In the unforeseen circumstance that one of their employees dies your clients can provide a lump sum payment to their estate, financially helping their loved ones.

benefitsThere are many benefits to offering these services for you, your clients and their employees.

You will be able to:

• Offer an additional tailored service for your business clients

• Generate growth within your business at no extra cost

• Retain full ownership of your clients

Your clients can:

• Improve engagement, motivation and productivity

• Manage sickness absence effectively

• Attract and retain high quality of staff

• Have the flexibility to tailor the options for a cost effective solution

Your clients’ employees will have:

• A feeling that they are valued

• Access to benefits and discounts that they appreciate

• Reassurance of having prompt access to diagnosis and treatments to aid their recovery

more informationTo find out more about how you can introduce this service to your clients, contact the Hub on 0121 767 1100 or at [email protected].

increasing your business client offeringare you maximising the opportunities available with your business clients?

Louise Evans Head of Client Referral


7

it’s hard to believe we are almost a year into the changes that mmr brought. 2014 turned out to be a fantastically productive year for Personal touch members, with lending up across the board.Already a month into the New Year, I’m sure you have started to plan how your business will take shape and continue to grow.

But what will happen to pricing, who will be lending and at what rate? How will the economy look and how will this affect your business?

bank rate riseIt’s been talked about for so long, with most experts now saying we won’t get an increase until early 2016. However, we may see an increase towards the end of this year although the political landscape post-election will have as much bearing on the decision as the economic one.

inflationInflation is currently well below the 2% target, hitting an all-time low of 0.5% in December 2014.

Economists broadly expect the UK to benefit from this below-target inflation for some time.

global financial issuesWe all hope not to experience the events of the 2008 Lehman collapse but there is still a possibility of unexpected financial trauma, as seen in the Russian economy at the end of 2014.

Closer to home the Eurozone continues to be uncertain. The decoupling of the Swiss Franc from the Euro and the Greek election results remind us of events over which we have no control.

increased regulationMarch 2016 will see the EU directive, which will enter UK regulation as the Mortgage Credit Directive. This will involve a small number of administration changes for lenders.

There is also possibility that requirements for capital adequacy may increase costs for certain lenders and advisers this year.

UncertaintyOur market hates uncertainty and 2015 will be full of it! The general election will dominate in the first 5 months of the year. Then with the potential for a Eurozone crisis, and the continuing falling price of oil, all of which could push up the cost of wholesale funding and effect mortgage rates.

This is balanced by the strong motivation to buy a first home or to move to another property which we expect to keep the mortgage market buoyant.

There is still an overwhelming expectation that we will continue to see growth in lending from conservative estimates of around 2% right up to around 7-8%. So plenty of business will be possible this year, not forgetting all of the re-mortgage work to be done with impending bank rate rises and uncertainty dominating.

What will 2015 bring?Vikki Jefferies

Mortgage Propositions Manager

6 | PerSonal VieW

Mortgage Plus Plan - all the protection of Life Cover with added Incapacity coverSince the introduction of the Mortgage Market Review there’s been an increased focus on sustainable lending, primarily concerned with affordability if interest rates change. But we know the risk of death or illness could have a much bigger impact on clients’ families and their ability to repay their mortgages.

The mortgage protection market has long focused on covering just the risk of death. However, we know that the risk of being ill and unable to do our own job is much higher. So, to help you give your clients more comprehensive mortgage protection we have launched the Mortgage Plus Plan.

It gives all the protection of life cover, but it also includes Incapacity Cover to help cover your clients for severe illness or injury. So, if they’re unable to work because of an illness we cover, they’ll get up to 24 monthly payments designed to help pay the mortgage. And if they suffer a new condition after claiming on another, we’ll cover that for up to 24 months too.

Clients can also add extra covers to their Mortgage Plus Plan, including:

• Serious Illness Cover for Mortgages

• Optional Serious Illness Cover for Children

All this means better protection for your client’s mortgage than they get from life cover alone.

SEE THE BENEFITS WITHOUT HAVING TO MAKE A CLAIM

The Mortgage Plus Plan comes with access to our healthy rewards and discounts. We help your clients save money and get healthy, and reward them for their efforts. We want your clients to live life well and we’re here to help them do it. The discounts and rewards we offer help your clients get healthier, and save money at the same time. So your clients don’t have to make a claim to see the benefits.

FIND OUT MORE

For more information on our Mortgage Plus Plan, please visit vitalitylife.co.uk.

TIPGiven all of the uncertainty of what will happen throughout the year, it has never been more important to stay up-to-date on industry and product news. This will support you in achieving good customer outcomes and maintaining your knowledge.

Each week we put together our newsletter Personal Column, which includes the latest news from all product areas and latest industry news. Look out for it in your inbox every Friday!

I have over 30 years experience in financial services including working with banks, life offices and distribution businesses in sales, operations and IT.

I initially joined Personal Touch in August 2011 on a consultancy basis to head up the implementation of the retail distribution review (RDR) within the network.

Following the successful implementation, I was appointed as head of the newly formed propositions team in 2012. I changed responsibility to head of member services in 2013 and was appointed member services director in January 2014.

Most recently I have assumed responsibility for the IT team within my current role. As part of this I particularly enjoy engaging with members to promote and collaborate in the delivery of good customer outcomes. I also like the innovation and creativity that can be achieved through technology. My main responsibilities include:

• Ensuring our members deliver good customer outcomes through monitoring the quality of advice via our desk-based AQR team and our field-based MCCs.

• Providing relationship management through the member contact team and the relationship team.

• Defining and delivering our service proposition, including technology developments.

Turn to page 22 to read more about our exciting Toolbox technology.

2014 AchievementsLast year, we reviewed our service delivery standards and framework and aligned them to the delivery of good consumer outcomes. We implemented direct supervision, developed and implemented the new Fact Find and suitability letter wizard within Toolbox.

Our advice quality review team further developed our risk-based approach to file reviews and put consistency measures in place for file review processes. We have also provided technical support through our member contact team and mortgage helpdesk.

Forthcoming ProjectsThroughout 2015 we will be implementing a revised training and competency scheme that focuses on supporting member development and the delivery of good customer outcomes. We will continue to drive improvement in our service standards and add value through business development. This includes a more collaborative approach to advice quality: working together to get it right first time.

Our proposition will be developed to continue to offer a flexible approach to services, how we provide them and charge for them. In addition technological enhancements, such as electronic ID verification and integrated mortgage sourcing, will be embedded to support quality advice and increased productivity.

This month our member services and IT director, Dave Edwards, tells us a little bit more about his work and personal life. We will be holding member forums to discuss all

of these new initiatives, look out for more details coming soon.

EventsThe wealth management conference was a great opportunity to interact with advisers and providers at the round table events. I particularly enjoyed LIVE as we launched our fantastic new initiatives with exciting live demos. Turn to page 14 to read more about our annual flagship event.

Outside of workI enjoy spending time with my family and part of this involves travelling around the world, as most of our immediate family lives overseas. This year I’m looking forward to visiting America and Italy, where I will hopefully put my Italian to good use.

I am also a sports fanatic and I spent most of my youth and early working life travelling the country playing football, including playing for Port Vale. My highlights include playing against David Beckham and Manchester United and also playing alongside Robbie Williams.

Playing sport at this level has provided me with an introduction and great insight in how to plan, motivate, control and support colleagues to deliver the right outcome, a great result for the customer.

My hidden talent includes checking ropes for escapologists on the BBC….don’t ask!

DAVE’S TIPSThe over-riding thing for me is knowing your customers and understanding their individual aspirations to help shape your advice. Remember, the quality of advice is vitally important and we’re here to support you in delivering that.


ACROSS THE BOARD

If you would like to understand more about the benefits of LifeQuote and how it can help grow your business, please contact Chris Garcia, LifeQuote Sales Support Manager, on 01243 791030.

How LifeQuote can work for you

Success

“Using LifeQuote is simple and easy; it allows me to focus on meeting all of my clients’ mortgage and protection needs and it frees up valuable time to allow me to grow my business. The support from the administration team is second to none, they are always on hand to provide updates on my clients’ cases and help with any queries. Nothing is ever too much trouble for them and their team is quick to ensure my cases are on risk.

LifeQuote allows me to focus more on my clients’ protection needs and ensures they have the right cover in place to protect not only their mortgage, but their family. I would recommend LifeQuote and their services to other advisers, as it really does help manage the administration burdens we can come across when advising on protection.”

Throughout the industry, there is a trend which sees mortgage applications grow and protection figures start to drop. In 2014 we have seen Ian’s mortgage figures grow and his protection applications too, which is extremely encouraging.

Paul Roberts from LifeQuote explains “LifeQuote is absolutely delighted to have worked closely with Personal Touch during 2014 and to have helped so many Personal Touch advisers meet their client’s protection needs.

We’re particularly pleased that Ian has truly embraced LifeQuote’s range of quote, application and administration services and integrated them successfully into his business with both Ian, and his clients, benefitting from using LifeQuote.

Personal Touch is clearly a business based on experienced leadership and advisers with a strong customer focus. LifeQuote is really looking forward to developing our partnership with Personal Touch during 2015 while helping more customers address their protection shortfalls.”

ian lewin from Core mortgages decided to use lifeQuote to see how it could work for his business. he runs a successful mortgage and protection firm, but in 2014 found himself extremely busy with new mortgage enquiries.

Ian and his team didn’t have the time or resource to focus on all of their clients’ protection needs. Mortgage applications were building up and he knew he needed some support. When LifeQuote launched Ian realised this could be the tool that could support him and grow new business opportunities. The easy to use technology portal and the administration support was just what he needed.

Charlotte PowerProtection Proposition Manager

Throughout 2014 we worked to enhance our protection proposition to help you increase your protection business. We wanted to provide the tools and products to deliver quality cover to clients and help you grow protection sales, making it quicker and simpler. We ran a number of technical training member workshops each quarter, we launched new innovative products with our provider partners and ensured market leading technology enhancements were made available.

The biggest enhancement was access to LifeQuote’s quote and administration services. Created for busy advisers selling mortgages and protection, LifeQuote delivers market leading quotation functionality. It offers a comprehensive range of application and administration services, all supported with clear research output tools providing you with a seamless compliance trail.

benefits

There were a number of reasons why we wanted to provide you with access to LifeQuote:

• Quotes based on clients’ needs in order of priority

• Ability to compare single vs. joint plans

• Multi-benefit quote function

• Pre-underwriting decision-in-principle tool

• Full post-sale administration support

• Generic application form and process for all providers

The majority of our protection business written is focused on providing straightforward life cover to protect the mortgage debt, or in some cases protection cover is not sold at all. Also, we see very little focus on income protection, family income benefit or menu based sales. This is not providing clients with suitable protection solutions, based on their needs identified within the advice process.

Working with LifeQuote will allow members to easily quote from a menu-based option that takes account of clients’ needs and budgets. As LifeQuote manages the start to end process, you will also save time on administration and costs.


interest rates: probably the most important and most talked about facet of the financial services world, particularly if you are a mortgage adviser.

We have fixed rates, discounted rates, standard rates and even London interbank offer rates. If your client was not already confused, they will be when you have explained all that!

As you know, we are currently in the longest running period of low interest rates in history and much has been discussed about the time when rates will increase. Two members of the Monetary Policy Committee have already voted for a rise consistently of late. There has not been any agreement and it is unlikely that it will rise until the end of 2015; at the very earliest it might after the May general election. So what does that mean for clients who are seeing wages reduce in real value, costs increase, and potentially their mortgage payments increase?

It means that it is really important for you, their adviser, to be on the ball. Monitor those period end dates, keep in touch with your clients regularly, and perhaps send an e-mail about interest rate trends or a newsletter. Make sure you do, because lenders and competitors will!

One point to note is that whilst re-mortgage offers may provide a free valuation or free legal costs, the lender will probably charge an arrangement fee. If you have carried out a few re-mortgages over the years for a client, how long will it take them to recoup any fee that has been charged and does this negate the savings made on the reduced rate?

Other than that, don’t forget the customer should be at the heart of everything you do. Keeping up to date with their interest rate concerns will enhance your relationship with them.

Interest-ing Rates

*Figures correct at printing January 2015.

Each month we focus on a member’s success story from their business. This month Rob Marchini has highlighted the achievements of Stephen Thomas, director of Optimize, based in Scotland.

Stephen’s viewI have over 25 years’ financial services experience and have worked within the industry since 1989. Optimize Financial Solutions Limited was established in 2002 and since becoming independent in 2006 we joined Personal Touch. Myself and fellow director, Alex Lawrie, chose Personal Touch as we felt that the network shared the same values, honesty and integrity that we did, with a focus on providing quality advice that is valued by our clients.

Customer serviceOur focus has always been providing good customer service. This is reflected by our very loyal client base and the level of repeat business and referrals we get. We believe the key to achieving this is through clear communication with our clients and the provision of consistent quality advice.As part of this, we are proud to have a green RAG status across all aspects of our business. We intend to maintain this going forward, with the support of Personal Touch and the advice quality team. EvolutionThe company has seen a number of changes over the years, but we have always stuck to our core values.We are still adapting to RDR, however we believe we were fortunate in that the RDR reflected a lot of what we were already doing.It has not been difficult for us to make the transition from commission to fee charging, as we always had an emphasis on ongoing fees (trail) with lower than average upfront commissions. Our clients have always been aware of what they are being charged for and what they can expect from us in terms of ongoing service.RecruitmentUntil recently recruitment has not been important to us, but we have taken on one investment and pension adviser in the last 18 months, as well as recruiting a trainee GI adviser. This has certainly made a difference to our business. We are currently looking for at least one more qualified adviser to help us develop the business further and to achieve the levels of service we want to provide across our client base.Service PropositionWe are continuing to work on our service proposition to ensure it is fit for purpose and flexible enough to meet the different needs of our clients. In addition, I have used the Hub recently for areas outside of our authorisation and found that this is a slick service, which will enhance our proposition going forward.

ZONE

Rob’s viewStephen and Alex’s firm has continued to grow despite so much regulatory change. Optimize are a great example of a sustainable, high quality business that understands what it is good at: providing excellent advice to a mass affluent demographic, always putting the clients’ needs at the forefront of everything they do. This has enabled them to grow via referrals and “word of mouth” in their proximity and, in my opinion, they embody the core values that Personal Touch espouses.


Paul Bennington Product Support Consultant

on 22 January a record number of over 200 advisers and 27 provider partners from across the UK joined Personal touch staff for a day of networking at birmingham hilton metropole. there was also an evening of recognition and celebration for member and provider achievements alike.We have put together a special supplement to capture all of the highlights from our unrivalled annual flagship event.

Take a look at our exclusive LIVE supplement online! Visit www.bitly.com/LIVE2015 for details of:

• The conference• Our exhibition hub• Exclusive updates• Strategic provider presentations• Seminars• Gala dinner• Provider award winners• Member award winners

We would love to hear your feedback! Visit www.bit.ly/LIVE2015 to let us know what you thought about the day and the evening celebrations.

thank you to our delegates and provider partners for making the event such a huge success!



Londoners face an average cost close

to £1.2 million.

Couple from the North East have a leaner

average of £702,000.

The average amount spent on babies during their first year is £3,069.

A typical three bedroom semi-detached house in the UK is close

to £175,000 (£174,429).

The joint retirement fund required to maintain an average couples’

standard of living currently stands at close to £685,000.

The average married couple has to borrow exactly 50% of the total money

used to fund their own share of

wedding costs.

Only 9% of people marrying had to borrow

all of the money they spent on their wedding.

43% managed to fund their

wedding entirely from savings.

The average first time parent has to borrow only 9% of first-year

baby costs.

Almost three-quarters (73%)

manage to avoid ‘baby-borrowing’

altogether.The averagae first-time-buyer

puts down a 20% deposit.

The report reveals that those who start saving early in life are 50% to 57% more likely to gain ownership of

property and investments in their forties and fifties.

Among those 45-64 year-olds who

started saving seriously before

age 25, 55% now own their home outright.

Among those who only started saving seriously at age 34 or later, only 35% owned their home

outright.

60% who started saving seriously before age 25

owned non-cash investments, compared to just 40% of

those who didn’t start saving until 34 or later.

Average cost of marriage stands at £11,168 (average

2010-2014).

At the start of the year many of your clients will be preparing for key lifetime events such as buying a house, getting married, having children or perhaps retirement plans. But do they know the true costs of these?

A report* about the costs average UK couples have for such events has been published. It reveals that on average they will spend close to a million pounds (£877,000)* on these.

With these significant costs, it is has never been more important for people to manage their money and plan sufficiently by seeking quality financial advice.

ISAs can be an effective way for clients to make savings in preparation for such events. Are they maximising their full allowance? Turn to page 19 to read more about ISAs.

* The Lloyds Bank Family Savings report 2014

Perception vs. Reality - Time for a reality check?

At the recent Personal Touch conference, we talked about ‘Time for a reality check?’ – a hard-hitting, yet captivating way to talk about the need for financial protection with your clients.

At the heart of our message was the very real need to help clients to sense check what financial protection they have in place, or what they think they have in place; as there can often be a big difference between perception and reality.

And often the reality of their situation only hits home when things go wrong. Take for example, being off work because of an accident or illness. LV= research shows that one in three workers (38%) have lost income as a result of sickness, with the average worker suffering a £430 drop in their weekly income. This serious loss of income can have a devastating financial impact not only on them, but also their loved ones and family members.

So, how do you get to the nub of your client’s financial situation quickly and effectively?

Try the 3 step ‘Reality Check’. Help your clients to sense check their financial health and very quickly they’ll see the importance of having the right protection in place, should something unexpected happen to them.

3 step ‘Reality Check’:1. Make sure you see your client’s contract of employment

Check exactly what they’re covered for, so you can tailor the level and type of cover to their circumstances.

(Remember, even if they qualify for sick pay, employers are only obliged to pay Statutory Sick Pay of £87.55 per week for up to 28 weeks).

2. Print off the Employment Support Allowance claim form

It’s complicated and long… very, very long. 57 pages, in fact!

LV= claims form by stark contrast is 7 pages short.

3. Try the award-winning Risk Reality Calculator

If you haven’t already, try the calculator at riskreality.co.uk/personaltouch. It makes the need for financial protection very clear and your client conversations much more personal, relevant and real in seconds.

Your client’s monthly income underpins their lifestyle today, tomorrow and in the future. So, help them to get reality in check and make their income the first thing they think about protecting. Then, if their financial circumstances do change unexpectedly, they’re sorted.

Visit LV.com/personaltouch 21546443 01/15

By Graham Taylor, LV= National Account Manager


SimplicityIt’s a gateway for everything you need to access to run your business, including the integration of Toolbox, the Fact Find and the Training Centre. You can keep up-to-date with the latest news, social media and blog posts all in one place, making life easier for you. With our dedicated sections and clear navigation it couldn’t be easier to find what you need when you need it.

innovationAnother benefit is that we own the technology, so we can use this platform to develop new services for you to continuously meet your needs and remain at the forefront of the technological market.

One aspect we will be looking to implement is toolkits to help you grow your business and your client base and support the advice process. These will provide you with information and support in achieving your goals, whether you’re a principal or an adviser.

opportunitiesYou can view and access the wide variety of services that we offer to maximise your membership and add value to your business. What’s more, you can find out about exclusive Personal Touch updates alongside provider updates and product launches.

In addition, the streamlined journey through one access point will save you time, giving you more time to spend with your clients.

PrecisionThe portal is a new type of communication channel. You can read the latest messages that are specifically tailored to you and your expertise, for a truly personalised service.

Back in December we launched your brand new portal, a central location for all of our services and information. This piece of technology is something that we designed with you and your business in mind.Here are just some of the things that your portal provides, supporting you in offering a fantastic service to your clients:

ContactIf you would like more information or have feedback about your portal, please get in touch with the marketing team at [email protected].

Your Portal

Jay NaylorSenior Marketing Manager

Simon HewittWealth Proposition Manager

iSa Seasonahead of the iSa season it is always beneficial to look at key trends in the iSa market and the characteristics of iSa investors.

HMRC requires all ISA providers and managers to report certain information each year. From this they then produce an annual report which is readily available to the intermediary profession and indeed the general public.

As well as giving providers an array of useful MI on client behaviours, it also gives the adviser community valuable information and can help with building your ISA campaign. You can also use this information in client meetings to increase awareness of how the UK market is evolving, particularly with the generous increase in the annual ISA limit from July last year.

Below are the key headlines, including information up to tax year ending April 2014:

• 13.5 million people opened an ISA in 2013 / 2014• 78% of these were cash ISAs• £57 billion was invested in ISAs• Average premium = £4,250 • Junior ISAs – 432,000 were taken out • Estimated exchequer cost of the tax relief for 2013 - 2014 was £2.85 billion

There are some interesting numbers above and these are of course gleaned from statistics gathered prior to the budget announcements last year. It will be interesting to see how the new flexible `at retirement arena’ impacts ISA sales and average premiums.

Platforms are likely to benefit significantly from the higher than usual increase in ISA allowance(s). This, together with less people automatically annuitizing their pension funds at retirement, gives them significant scope to retain assets for much longer.

There is hope that this will further drive down costs for consumers, as the battle for distribution plays out between platforms and traditional packaged product providers.

It is an exciting time for our industry. There are so many reasons to talk to clients and they will be looking for your expertise in advising them on some critical decisions. We will be working with you to help ensure your clients’ savings needs are met in an efficient and informed manner.


throughout 2015 we will be evolving this further to integrate new services designed to help you manage, develop and grow your business. look out for updates in the coming months.

Case reviewed by AQR and actions sent

to members

Case is given fail record keeping status and query points are sent to member

Case recieves pass or pass with

learning status

Case receives pass with learning status

Member conducts remedial work and responds via Toolbox

Member response satisfies action

points


points


points

AQR raises action points and case receives fail record keeping status.


AQR raises action points and case receives fail record keeping status.


Case may be failed at this stage

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AQ

R 3 stage review

processAdvice quality review adopts a risk-based approach to identifying cases for review. This is dependent on the risk rating of the adviser and the product, as shown in the table below:

Red Product

Amber Product

Green Product

Red Adviser

100% 100% 100%

Amber Adviser

100% Thematic / sample

Thematic / sample

Green Adviser

Thematic / sample

Thematic / sample

Thematic / sample

We have included an outline of our process below and created a simple 3 stage flowchart to explain what happens and what you can expect at each stage, giving you greater clarity.

SelectionCases are selected for review approximately 10 days after the policy record is created on Toolbox. The case is reviewed initially to ensure that all appropriate documents are attached. This administrative review has no effect on the final rating of the file and results do not affect the KPIs in the Dashboards.

reviewFirst time passesThe case is then reviewed by a quality reviewer to assess suitability of recommendations, products purchased and to ensure good customer outcomes have been achieved. A successful outcome would result in the case being marked as a pass. An e-mail is then sent to congratulate the adviser for passing first time. In the event that best practice points are made for future reference, the case is marked as a pass with learning; either way, this counts as a first time pass.

Second time passesIf there are issues that need to be addressed the case is marked as failed record keeping and the query points are sent to the adviser via Toolbox. The adviser has 10 days in which to conduct remedial work and respond via Toolbox. If no response is received after 10 days, a reminder is sent giving another 5 days to respond. If there’s still no response a 48 hour warning of a breach is issued.

Providing the member response answers all of the queries raised within the timescales, the case is marked as pass with learning. This is recorded on the Dashboards as a second time pass.

Third time passesHowever, if the adviser fails to address all the points raised, the responses lead to further queries or the timescales have not been met, the case is again marked as failed record keeping. This would mean the case can now only be a third time pass as further work is required.

The same approach as above is taken: the query points are sent to the member via Toolbox, the adviser conducts the remedial work and responds via Toolbox. Support is also available from member competence consultants as they are informed of all cases that have gone beyond a second time pass.

FailsAt any point during the process the case could fail if poor consumer outcomes are identified. Before a case is recorded as a fail, the reviewer discusses the rationale with the advice quality manager. If the manager agrees with the rationale the case is marked as a fail on Toolbox and the member competence consultant is informed.

The case is then reviewed by the past business review team. This may result in customer contact and possible redress. If following the past business review the team are able to establish no customer detriment, the case will referred back to advice quality review. The case status will be adjusted to pass with learning.

Be aware that all pre-verified cases are reviewed to the same process and the results affect the KPIs on the Dashboard, even if following pre-verification the case does not proceed.

more informationIf you have any questions or would like more information, please speak to the member contact team on 0121 767 1002 or at [email protected].

Recognising Quality

David Dean Head of Quality


Technological developments continue to affect the way consumers engage with financial services and how products and services are distributed. They will drive the need to establish effective and cost-efficient distribution channels.

benefitsBy adopting and improving the use of technology in your business, your customers and you can benefit in many ways. Interactions will be quicker, less costly, simpler and more efficient, improving customers’ experiences. In addition, customers will be able to source products with more ease and gain access to new channels for advice and information.

CustomersCustomer demand for online financial access is causing a shift towards more direct and immediate interaction with products and services. The demand for technology has seen an increased usage of digital platforms and the use of online sources of information within financial services.

This shift in consumer behaviour and demand will turn the distribution model on its head, as we move to an age where it all starts with the customer.

This will require customers to gain a better understanding of the type of complex and important products they are purchasing and servicing directly through distribution channels.

This requirement is likely to be met in large part by technology-enabled information services, for example online guidance forums for financial products, some of which will be suitable for some intermediaries and customers.

The distribution of financial services products will need to evolve in line with the increasing customer demand to have the flexibility to self-serve and seek information or advice at many different stages of the advice process.

The consumer experience, including the advice process, will need to be multi-dimensional and have in-built flexibility to deliver information, advice and service via technology. This generation shift will also increase the dependency on advisers and brokers to have technology at their disposal on which they can build their business proposition.

our technologyA key differentiator for us is that we own our technology and have the capability in-house to develop and support it. This mean we can react quickly to changes in customer and regulatory requirements and control the associated costs.

A key part of our technology vision will be to deliver an integrated solution within Toolbox that can be supported through the advent of mobile technology. Business use of mobile technology has lagged behind consumer use, which up until recently has driven innovation.

The core technology in Toolbox remains key to our combined success. We are in a unique market position if we can make data available to all members and their customers across mobile devices. A key differentiator would be the use of mobile and cloud technology to present data to advisers and customers.

I strongly believe that technology will be our leading differentiator as we look to develop, expand and improve the services we provide to our existing customers and new markets.

Financial Services Technology

StrategiesTechnological innovations have become crucial to the strategies that advisory firms will implement to increase the volumes of transactions that they can handle and the cost-effectiveness of their operations. Combined with growing consumer demand for automated, online and instantly accessible financial services, this is an area that is increasingly driving how the financial services sector develops and distributes financial products and services.

Dave EdwardsMember Services and IT Director

Infomation

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Images source: Swiss Re, 2014 ‘Innovation through data and technology report’

ROOT CAUSE ANALYSIS- Desirable Quality Advice

this month we are focusing on the impact of both desirable and undesirable outcomes.

The 4 complaints analysed were concluded by Personal Touch and / or the Financial Ombudsman Service during April, May and June 2014. Our root cause analysis helps identify areas we need to address as a business, following a Financial Ombudsman Service (FOS) decision going against us or if we uphold a complaint. These case studies highlight the importance of the steps you take in your advice processes and how the details affect the bigger picture for your clients and your business.

The first case below covers an advising firm that did ensure the customer was looked after. However, a claims management company became involved with the customer some years later and we faced a complaint about investment advice.

This demonstrates that it is no bad thing to consider what is desirable, especially when noted by an independent arbitrator, such as the FOS, who agreed with the defence of a complex complaint.

Desirable outcomesFOS adjudicator’s decision on a complaint found in our favour

This case relates to an investment taken out by a couple in 2006. We were able to refer to good solid advice and documentation to defend the complaint handled by the claims management company.

A claims management company approached the FOS and they agreed with our decision. Some of the positive steps the advising firm took during the advice process were crucial in both why Personal Touch reached the decision it did and why the adjudicator agreed with our stance. Some of these include:

• A full completed Fact Find and record of personal circumstances. • A clear record of customer objectives; the customer was looking to reduce the risk in their investment portfolio

during retirement. The adviser’s recommendations addressed this need. • Full consideration of the different investment / product options available, especially the benefits of utilising tax

efficient wrappers.• Greater diversification than the previous investment and in line with recorded attitude to risk. • The signed cancelled and replacement / switch policy declaration provided clear evidence that they understood

the rationale behind the recommendation and the costs involved. • Clear statement of the customer’s risk profile and appropriate definition. • Clear outline of investment risks in the suitability letter with references to appropriate documentation.

Conclusion

Although the adviser reduced risk in their investment portfolio, the customers suffered heavy losses (along with many other people) with the stock market crash in Autumn 2008. Instead of “riding the storm” and letting the funds recover over time the customer chose to surrender their investments, thus crystallising their losses. Our decision was the adviser could not be responsible for this.

The file evidence really showed a picture of happened and what advice was given, which really helped defend the complaint.

Learning Outcome

The arguments used by the claims management company in this instance were not carefully considered and we were able to counter them effectively. This really highlighted the value of the complaints team in dealing with a claims management company that adopted tactics of throwing almost every argument imaginable into the situation.

But most importantly, the advising firm treated the customer fairly and had the evidence to prove it.

good advice is the building block to creating a long term customer relationship.

Paul WhorriskeyComplaints Manager


ROOT CAUSE ANALYSIS- Desirable Quality Advice

Undesirable outcomesSelf-employed and pre-existing medical condition

In the first case, the customer complained that the advising firm mis-sold a mortgage payment protection insurance (MPPI) policy in 2008. In particular, he believed that the policy would not have covered unemployment as he was self-employed at the time of the sale.

The definition of the policy recommended for unemployed or loss of employment is: “a period during which you are no longer in employment, and if you are self-employed have completely ceased to trade, and registered as unemployed with the Department of Work and Pensions”.

We found in this case, the customer was not sufficiently aware of the terms and conditions relating to unemployment. Therefore, the customer may not have taken out the policy if this information had been made clearer to him.

Mortgage Payment Protection Insurance (MPPI)

In the second case, the customer complained about a MPPI policy taken out in 2004 in conjunction with a mortgage. The customer believed that the advising firm mis-sold the policy because she felt pressured into purchasing it and it seemed taking out the policy was a condition of being granted the mortgage. In addition the limitations and exclusions, particularly those relating to pre-existing health conditions, were not highlighted and explained to her making the policy unsuitable.

Our conclusion in the second case was that the advising firm was obliged to bring pre-existing conditions to the customer’s attention when it sold the policy and to take them into account in any advice it gave. We had limited documentation from the time of the sale. Therefore we were unable to establish whether the advising firm gave sufficient consideration to the customer’s health in making its recommendation or that they highlighted this very significant policy limitation.

Considering the nature of the customer’s pre-existing condition (ongoing medical tests and mild depression), we felt the need to make provision for it would have been uppermost in the customer’s mind. Had it been explained that the customer may not be covered or the policy may not be suitable they may not have taken it out.

Conclusion

We were not convinced either customer would have proceeded with the recommendations if they had fully understood the implications of the policy limitations.

Both complaints were upheld. Premiums (with 8% interest) were refunded to both customers.

Learning Outcome

When arranging cover advisers need to very careful around existing medical conditions and other plan restrictions. Where these are directly relevant to the customer, you need to make sure that your correspondence with the customer reflects this. It needs to explain both how the limitations apply and why you think the plan is nonetheless suitable. Be particularly careful around self-employed customers and those with pre-existing medical conditions.

Unless the customer really understands the restrictions for pre-existing conditions and the fact a claim may be declined, the policy can be easily mis-sold in these circumstances.

Unless the customer really understands the restrictions for self-employed persons, a recommendation to a self-employed person is never a good idea. They must have a clear understanding of the claim process, such as ceasing trading and registering as unemployed at the Department of Works and Pensions.

Our technology zone at Personal Touch LIVE brought you exciting updates for the Fact Find and Suitability Letter Wizard. It also brought exclusive initiative previews for 2015 including MortgageSource and electronic ID verification (EIDV).

mortgageSourceMortgageSource is a new technology solution from Twenty7Tec which will be available to you as a stand-alone mortgage sourcing solution from early February. Twenty7Tec will be providing dedicated support to show you the benefits of using the system.

What are the benefits?

We believe you will be impressed by its:

• Usability• Accuracy• Results • Intuitive

It supports the whole process and you will have access to a web-based version, which will give you the flexibility to mortgage source on any device from any location.

how does it work? The system uses in-depth analysis of product criteria to drive more accurate sourcing results. Furthermore, the product criteria and rates can be updated in real time by the Twenty7Tech product team, helping to ensure that sourcing is always performed across the very latest product data.

What does this mean for you?During 2015 Mortgage Source will be an inclusive benefit of your membership which means access is without charge for all mortgage authorised advisers.

With the expansion of our current sourcing options that we have selected, you have a choice of solution alongside Trigold and Mortgage Brain. Your current arrangements with Trigold and / or Mortgage Brain are unaffected by MortgageSource.

Following Toolbox integration it will help you seamlessly source mortgages and produce KFIs from within Toolbox, ensuring all clients’ Fact Find data is used to help you source the most suitable product and support you in working more efficiently, eliminating the need to rekey data.

electronic iD Verification (eiDV)From early February the use of electronic ID (EIDV) checks will be the primary form of identification for standard due diligence transactions and the charge has been completely removed.

In addition when using EIDV you will no longer have to upload a completed CVI form and the EIDV will screen PEP and sanctions databases.

What are the benefits?• Reduction in fraud - the improved and more robust

process will combat the risk of accepting fraudulent documents at the verification stage.

• Improved quality and productivity - the streamlined process requires less manual intervention, which will reduce queries. It will increase the number of cases going through at the underwriting stage and deliver a positive message to lenders and providers.

• Audit trail - the automated verification process provides an audit trail and assistance in meeting legislative and regulatory compliance.

• Reduced costs - there will be a reduction in administration costs, with the cost per check being met by Personal Touch.

• Enhanced customer journey - you will be able to provide an even better service for your clients, as they won’t need to find and produce a number of documents.

What does this mean for you?As a consequence of these improvements an EIDV will be required from 02 February 2015 for all standard due diligence transactions. The requirement for simplified due diligence transactions is unchanged.

Turn to page 22 to read more about the importance of financial services technology.

Tools for

the job


Dave EdwardsMember Services and IT Director

REMORTGAGE

For Intermediary use onlyNationwide Building Society, Nationwide House, Pipers Way, Swindon, Wiltshire, SN38 1NW. *Free standard legal fees cover the conveyancer’s professional charges relating to the remortgage when using one of our panel managers. Details correct at time of going to print. F740 V1 (10-2014)

£250Cashbackor free standard legal fees*

Helping you to offer more choice to your remortgage clients For more information visit nationwide-intermediary.co.uk/remortgage

Independent Remortgage GuideOur independent online remortgage guide covers everything your clients need to know about remortgaging. Why not download a copy to share with your clients.

F740_Remortgage_210x297_02.indd 1 10/10/2014 15:20

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