Axa wealth nma2012 finalv2


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Axa wealth nma2012 finalv2

  1. 1. AXA Wealth The Retail Distribution Review Preparing for a New World New Model Adviser Conference and Awards January 2012
  2. 2. Standards for Independent AdviceRules apply at Firm and personal recommendation levels• Firms to decide charges for services ahead of client meetings• Inform each client individually about services, current and future charges• Pricing structures to be compatible with impartial advice• Provide unbiased and unrestricted advice• Be equipped to give comprehensive and fair analysis of „relevant‟ markets
  3. 3. Standards for Independent AdviceWhat does comprehensive mean?• Awareness of all types of retail investment products suitable for a client• Consider all providers of and products available in the market placeWhat is a relevant market?• Contains all retail investment products capable of meeting a client‟s needs and objectives• May be limited by the client - e.g. ethical investments
  4. 4. Retail Investment ProductsIndependent advisers will have to consider a broader range of productsPackaged products Retail investment productsA life policy A life policyA unit in a regulated collective investment scheme A unitAn interest in an investment trust savings scheme A stakeholder pension schemeA stakeholder pension scheme A personal pension schemeA personal pension scheme An interest in an investment trust savings scheme A security in an investment trust A structured capital-at-risk product Any other designated investment which offers exposure to underlying financial asset National savings and cash deposit ISAs
  5. 5. Standards for Independent AdvicePanels• Summarise the outcome of research• Must be reviewed regularly• Sufficiently broad to support a comprehensive and fair analysis• Reasons for exclusion consistent with client‟s best interest rule• Firms responsible for criteria used by third parties• Must be possible to go “off panel”
  6. 6. Standards for Independent AdviceOther issues • Professional Indemnity insurance • Adviser within a Firm not permitted to advise on certain products • Can a firm be both Independent and Restricted? • Specialists • Permissions • Platforms – single platform and independence
  7. 7. What are the implications? Additional study / CPD/ on-going training Keeping up to date with market developments Understand the resources required and costs Advice process needs to be reviewed Investment process needs to be reviewed Existing client portfolios7
  8. 8. Investment process All Firms should have a documented investment process in order to … • Evidence how they identify clients‟ risk profiles • Demonstrate the rationale behind investment solutions recommended to clients • Support „suitability‟ and do all of this consistently for all clients of all advisers of the Firm This is now a „hot topic‟ for the FSA • Final guidance on assessing risk March 2011 – capacity for loss • “Dear CEO” letter June 2011 • Centralised investment propositions thematic review8
  9. 9. Restricted adviceWhere the rules for independence are not met• A restricted range of retail investment productsRestricted advisers may be any form of adviser• Directly authorised/appointed representatives/ multi or single tiedIt is for advisers to decide the basis of any restrictions• Product provider/product type/markets/platforms/investment strategiesAdviser charging/qualifications/suitability/capital adequacy are unaffected
  10. 10. Restricted adviceWhy might this be an option?• Clients needs are met by current investment solutions• The business is able to retain it‟s current regulatory status• Maintain position as “agent of the client” (except tied advisers)• Training and competence issues less extensive• The costs of dealing with the “Retail Investment Market” may be less• Potentially reduced regulatory risk
  11. 11. In conclusionWhat markets to operate in / clients to work with?Determine the service proposition – initial and on-goingType of advice – independent or restrictedDevelop processes/systemsDesign an investment process to demonstrate suitability/consistencyMigrate clients to the new proposition
  12. 12. Important informationInformation about tax is based on AXA Wealth’s understanding of current legislation and HMRevenue & Customs practice. Tax treatment can change and depends on your personalcircumstances.The information contained in this presentation does not constitute advice. It is designed forfinancial adviser use only and is not intended for use with individual investors. Any sample screenshots displayed are correct at date of issue but may be subject to change.AXA Wealth, Winterthur Way, Basingstoke RG21 6SZ. Telephone number: 01256 470707. As partof our commitment to quality service, telephone calls may be recorded.AXA Wealth includes the following companies: Architas Multi-Manager Limited (No.06458717), AXA Portfolio Services Limited (No. 01128611), AXA Wealth Services Limited (No.02238458) and AXA Wealth Limited (No. 01225468). All of these companies are registered inEngland and limited by shares. Their registered office is 5 Old Broad Street, London EC2N 1AD.Each company promotes and distributes its own products and is authorised and regulated by theFinancial Services Authority. AXA Wealth Services Limited also promotes and distributes theproducts of AXA Isle of Man Limited and AXA Life Europe Limited in the United Kingdom. Details ofthe companies offering specific products are shown in the product literatureAXA Wealth is a marketing brand used by AXA Portfolio Services Limited.12