PV Feb 2015 WEB

FOR INTERMEDIARY USE ONLY
FOR INTERMEDIARY USE ONLY
View
Personal
February2015
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
£1 million for life?
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
13
16
18
19
20
22
24
27

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.
Benefits
There 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 Information
To find out more about how you can introduce this
service to your clients, contact the Hub on
0121 767 1100 or at advice@personaltouchfs.com.
Increasing your business client offering
Are 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 Rise
It’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.
Inflation
Inflation 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 Issues
We 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 Regulation
March 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.
Uncertainty
Our 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 cover
Since 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.
TIP
Given 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 Achievements
Last 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 Projects
Throughout 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.
Events
The 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 work
I 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 TIPS
The 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 Power
Protection 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 service
Our 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.
Evolution
The 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.
Recruitment
Until 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 Proposition
We 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 view
Stephen 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!

£1 million for life?
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

Simplicity
It’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.
Innovation
Another 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.
Opportunities
You 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.
Precision
The 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:
Contact
If you would like more information or have feedback about
your portal, please get in touch with the marketing team at
marketingteam@personaltouchfs.com.
Your Portal
Jay Naylor
Senior Marketing Manager
Simon Hewitt
Wealth Proposition Manager
ISA Season
Ahead 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
Member response
satisfies action
points
Member response
satisfies action
points
AQR raises action points
and case receives fail
record keeping status.
Case receives pass
AQR raises action points
and case receives fail
record keeping status.
Case receives pass
Case may be failed at
this stage
Firstadvice
reviewstage
Thirdadvice
reviewstage
Secondadvice
reviewstage
AQR3stagereviewprocess
Advice 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.
Selection
Cases 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.
Review
First time passes
The 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 passes
If 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 passes
However, 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.
Fails
At 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 information
If you have any questions or would like more
information, please speak to the member contact
team on 0121 767 1002 or at membercontact@
personaltouchfs.com.
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.
Benefits
By 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.
Customers
Customer 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 Technology
A 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
Strategies
Technological 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 Edwards
Member Services and IT Director
Infomation
Advice
80%
Internet Friends / Family Insurance
company
T.V. Bank / Building
Soicety
Financial
Advisor / Broker
Work
Colleagues
70%
60%
50%
40%
30%
20%
10%
0%
INSURERDISTRIBUTION
ENDCONSUMER
START CONSUMER
Online
search
Targeted
advert Receive
quote
Product-related
call
Request further
information
Follow-up call
Liason with
loss-adjuster
Post rating
and review
Fill out on-line
claim request
On-line
customer
surveyBuy online
Text / email
confirmation
Check with
friends
Approach
agent
Buy
through
agent
Tweet
review Referrals
to family /
friends
Renewal
notification
Like
Tweet
review
Compare
quotes Browse
reviews
Gather
information
Seek
advice
Purchase
policy
After sales
service
Make
claim
Internet
Mobile
Social media
Agent / broker
Call centre
Retail branch /
bank
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 Outcomes
FOS 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 Whorriskey
Complaints Manager

ROOT CAUSE ANALYSIS
- Desirable Quality Advice
Undesirable Outcomes
Self-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).
MortgageSource
MortgageSource 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.
Toolsfor
the job
Dave Edwards
Member Services and IT Director

REMORTGAGE
For Intermediary use only
Nationwide 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)
£250
Cashback
or 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 Guide
Our independent online
remortgage guide covers
everything your clients
need to know about
remortgaging. Why not
download a copy to share
with your clients.

PV Feb 2015 WEB

Recommended

Recommended

More Related Content

Similar to PV Feb 2015 WEB

Similar to PV Feb 2015 WEB (20)

PV Feb 2015 WEB