AXA presentation _ www.bit.ly/taiho123

independence FSA accepts that for client groups where needs are similar and suited to benefits of a wrap platform, the use of a single suitably comprehensive wrap solution will not jeop

‘Reviewing your choice of Platform

in light of RDR’

Business Development Director

Future drivers impacting on business

Base: All Respondents (387)

What future drivers will have an impact on your business over the next 12 months? Please tick all that apply Source: NMG IFA Census February 2009

RDR and TCF will be the dominant drivers for the

future changes

Meeting the requirements of the FSAs Retail Distribution Review

 From 2012 all Advisers operating as Professional Financial Planners will be required to agree the price of advice separate

to any commissions generated through the sale of a product

 Firms wishing to grow recurring revenues will need to

demonstrate the value that clients continue to receive for

ongoing advisor charges

 Advisers will need to ensure absolute transparency of charges

Single platforms vs independence

 FSA accepts that for client groups where needs are similar and suited to benefits of a wrap platform, the use of a single suitably comprehensive wrap solution will not jeopardise advisers’ independent status.

FSA CP 10/29 – Use of single platform

 One platform for all clients for all investments

 Requires clearly defined client bank

 Similar range of needs and objectives

 Selected platform can address all needs

 Some clients will have needs not addressed by wrap

 These “outlier” clients would need to be “screened out”

 One platform for all clients for most investments

 A more likely, realistic and pragmatic scenario

 Means “default” wrap used

 Allows room for off-platform/niche solutions

 One platform for some clients

 Single wrap for defined group with same needs

 Means off-platform or other platform used for clients outside this client group e.g one wrap per market

Flexible Adviser Remuneration

Elevate Portfolio Charge

Net AMCItemised charges

Fund manager

rebates paid to client

SL Wrap

Elevate Charge

Multiple Platforms or a Dual Charging Platform????

 Tips to support and enhance your ongoing platform due diligence

Wraps – a practical definition

The FSA defines wrap platforms as follows:

‘Platforms are online services, used by intermediaries

(and sometimes consumers directly)

to view and manage their investment portfolios.’

FSA Discussion Paper on platforms, June 2007

Life and pensions provider pensions Life and provider #2

#3

Life and pensions provider Life and pensions provider Funds

supermark et

SIPP

provider

Life and pensions provider

office software

Back-Exchange Advice tools

Client Management

POS / Advice tools

Back-office / MI

Trading Platform and Products

Client Management

POS / Advice tools

Back-office / MI

Wraps bring operating benefits

FROM THERE & THEN TO HERE & NOW

Wraps = a venue for investment

Due diligence

 3 elements influence relevance & value of wraps:

1 Type of client you wish to advise

2 The relationship you wish to offer your clients

3 The investment proposition relevant to your market

 Some “niche” areas not served by wraps – yet!

 So what should I consider when choosing a wrap…

Due diligence

1 Strategically

 Identifying a wrap that meets:

• The operating requirements of your desired business model

• The investment proposition needs of your target clients

• Criteria you use to assess fitness of a key business supplier

2 Tactically (i.e client by client)

 Confirming whether utilisation of the wrap platform you have selected is suitable for a specific client

 Deciding whether to “screen out” clients for whom a wrap-based

proposition is not suitable

Due diligence

 FSA – Fact-sheet:

 Platforms: using fund supermarkets and wraps

(considerations when examining wrap platforms & their providers)

 Your Business

 Agree that wraps offers business and client benefits

 Understand the client types or life-stages you wish to serve

 Articulate the client value proposition and processes you will deliver

 Have a robust investment proposition you wish to deliver

 Create criteria a wrap has to satisfy for your model - based on FSA Fact-sheet

 Include qualities in a business supplier that protect/enhance your reputation

• e.g financial strength, disaster recovery, added value services etc.

 Create a short-list before RFI

 Conduct interviews/site visits

 Select wrap

 Decide how often you will renew your due diligence exercise

 Document it!!

 AXA Wealth – Elevate Wrap Platform – Our story:

 Due Diligence – short leaflet and comprehensive document

 “Why We Chose Elevate” – AXA Business Consultancy

 Delivering enhanced planning capability

Craig Monahan- Platform Consultant Presentation

- Upload/

download your own music/

videos

- Create your own playlists

- Download your own apps

Place business

What is Elevate- Just a bit of technology…

Use as a phone and listen to music

Camera Calculator Email Internet Diary GPS

Tools Reports Platform and Business consultancy

Entertainment system

Portable office Digital photo album Phone and MP3

- Improve client experience

- Increase business efficiency

- Help clients be more engaged with investments

- Tool to place business

- Own logo and colour scheme

- Set your own pricing structure and

remuneration levels

- Create your own model portfolios

- Choose your own best buy lists

Elevate is an enabler, it allows you to

do as much or as little as you want

What else

- Market leading

- Ergonomic design

- Future updates

- Product guarantees

- Recognised brand

- Financial stability

- Commitment

to market

- Future development

Elevate proposition

 Strategic importance to the AXA group

 Built on sound principles

 Sensible use of award-winning technology

 Technically innovative tax wrappers

 Straight Through processing

 On-Line Anti-Money Laundering

 Negative Affirmation

 Supports financial/lifestyle planning

 Access to the right investments

 Underpins a Flexible Remuneration Strategy

 No barriers to entry or exit

 RDR friendly

 Clear upgrade path

 Specialists to support transition

Risk report

• Consistent with offline version and

so can be used in conjunction

Enhancing your investment proposition

 Old Broad Street Research (OBSR) model portfolios

 Created and managed by OBSR

 Directly aligned to TP Risk Assessment outputs

 Reviewed quarterly, alerted when changed

 Enables outsourcing of fund selection

 Adviser model portfolios

 Created and managed at adviser or firm level

 May be applied across a number of different clients

 Efficient management of multiple portfolios with similar needs

 Client–specific model portfolios

 Created and managed at firm or adviser level

 Applied to one client account only

 Can be applied across different wrappers in the same account

Adviser

Client

OBSR

Enhancing your planning capability

 Ongoing Management of risk is critical

Strategies

 Models can increase service to more clients

 Technology & Wraps can deliver the efficiencies required – STP

 Dual Charging Option

Questions?