thursday 7 march 2013 · 2013. 3. 18. · 18/03/2013 1 accredited financial planning firms...

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Accredited Financial Planning Firms Conference 2013

Thursday 7 March 2013

VAT & financial services

Richard Stradling

Baker Tilly

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VAT AND FINANCIAL SERVICESVAT AND FINANCIAL SERVICES

Richard StradlingAssociate Director

VAT AND FINANCIAL SERVICES

A reminder – the law

• EU legislation Directive 2006/112/EC Art 135(1)(b) (g)• EU legislation – Directive 2006/112/EC, Art 135(1)(b)-(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”intermediary capacity

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• 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


The impact of RDR – HMRC’s view

1. gather information about the customer (fact-find)g ( )

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,

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The impact of exemption

• No requirement to register unless making taxable supplies over threshold• 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


Richard StradlingAssociate Director

© 2008 Baker Tilly UK Group LLP, all rights reserved

Associate Director

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 andMarkets 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 arean 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.

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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 FirmsIFP Accredited Financial Planning Firms

7th March 2013Hilton London Kensington

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Changes to the marketplace

• 3 main providers of PII to Financial Planners h ithd f th k thave withdrawn from the market

• The purchase and provision of PII has become “commoditised” since the economic downturn

• The costs of implementing RDR

• Many PII providers know this!!!• Many PII providers know this!!!

Changes to policy wordings

• Introduction of “new” policy language and tterms

• Is your policy FSA compliant?

• Is your excess “transparent”?

• Are you fully aware of your claims notifications and conditions?notifications and conditions?

• Does your policy have a “full insolvency exclusion”?

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• Are you fully aware of your claims notifications and conditions?notifications and conditions?

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Frequently Asked Questions and Myths

• Claims made not losses occurring

• Limit of Indemnity – costs inclusive

• Retroactive Date

• Product Exclusions

• UCIS

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IFP Accredited Financial Planning Firms PII Facility via IFA Solutions

• Average Premium Saving 22.9%

• Claims Notification ClauseClaims Notification Clause

• FSA DIC Clause

• Transparent Excess

• Fully retroactive

• Pro bono work

• Regulatory Investigations Costs

• Newly Acquired Merged firms auto included• Newly Acquired, Merged firms auto included

Refer to Policy Wording for full terms and conditions

Platform due diligence

Gillian Hepburn

Platform People

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Platform Due Diligence‘N & B l ’‘Nuts & Bolts’

What?

Due DiligenceHow? Why?

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What? 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?

Outcome and Application:

Appropriate platform selection

FSA Compliant Documentation

Consistent application in the business Improved efficiency & control Reduced PI costs Increased Value Multiple

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)

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How?Strategic Filters e.g.

Life Office v Independent

Commitment and scale Referrals Dealing and custody only

Timing

Initial platform decision

Annually ‐ FSA good practice Business mergers New clients Change to proposition Market changes e.g. new entrants

Client Service Proposition:

Influence of Segmentation

Reviews and reports Additional services e.g. Tax planning

Support

Online comparison tools

Consultants Service provider How?

Investment Proposition:

Models

DFM (On or off platform?) Active v Passive Rebalancing ATR and Asset allocation

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?

Who owns the Client?

Is one Platform okay?Requirements for DFM Due Diligence?

Ensuring Alignment of Investment Tools and Solutions?

Questions?

DFM Due Diligence?

On or off Platform Tools? Charges Comparison?

What shape are YOU in?

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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...

Websites | Blogs | Apps | Lead Generation | Consultancy

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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...

danielr@insight‐marketing.com | 07879 654191

1) Your website + I‐blog

Websites | Blogs | Apps | Lead Generation | ConsultancyHow does your website make you react?

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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...


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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


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SEO every page on your website….

a) Page Title

b) Meta Descriptionb) Meta Description

c) H1

d) H2

e) H3


f) Keywords in body

If they can’t find you; they won’t come….

http://www.google.com/places/


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Now that I’ve found you, what do I do? Converting visitors.....

Do’s Don’ts


Do sSoft OffersMeeting request with valueUse forms to capture dataWebinars

Don tsX Have nothingX DistractX Send people off your siteX Have out of date invitationsX Complicate it

Other ways to market....

1)PPC

2)E il k ti2)Email marketing

3)Don’t ignore offline marketing

4)Webinars

5)Backlinks

6)Social Media


6)Social Media

7)I‐blogs

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Are blogs really that important?

A few facts: (courtesy of Hubspot’s Marketing Benchmarks report)

• B2B companies that blog only once or twice a• B2B companies that blog only once or twice a month generate 70% more leads than those who don’t blog.

• Companies that increase blogging from 3‐5


p gg gtimes a month to 6‐8 times per month almost double their leads.

What is a Blog?


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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


) p p

6) Proven results + proven savings in operational time

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Are all blogs the same? ‐ Here is a common mistake


Oh! Here it is . . . . But it will not work like this


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How it could be working….


Gain difficult web rankings; easily…


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Increased traffic – often by 50% or more!


One post updates everything


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One post updates everything


Update Everything Including Your App


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Google Alerts – plus other ‘portal’s…..

http://accountancyprofession.com/

http://www.bbc.co.uk/

http://www.telegraph.co.uk/

Plus many other industry specific sources in a few minutes searching....


2) Mobile Websites


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Mobile websites for a changing world

• 50% of local searches are performed on a are performed on a mobile device

• 183% increase in last 2 years in Europe for mobile share of web traffic

• 27% open rate from


• 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....


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2 final ideas... Apps & Coffee!


www.yourifaapp.co.uk

Custom Design | Home Menu | Calculators


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The importance of coffee....!!


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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 f fi k ti


of your firms marketing

07879 654191 danielr@insight‐marketing.com

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Accredited Financial Planning Firms Conference 2013

Thursday 7 March 2013

thursday 7 march 2013 · 2013. 3. 18. · 18/03/2013 1 accredited financial planning firms...

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