The March publication of Investment Adviser featured a 2 page spread on The Spectrum Group.

1. intermediary profile Spectrum ifa Group
Spectrum IFA Group’s financial advisers say the company, which has operations in six
countries, adheres to a corporate philosophy that treats both its staff and clients fairly
left to right: David holmes, anne Ollerenshaw, Michael lodhi
All for one, one for all
By helen Burggraf best performers as well as in a way that, like an Of course, part of what
a working event, typically extended family, it gives one is picking up on in any
It is such a cold night in the featuring talks by product its members the moral sup- gathering of Spectrum IFAs
Vila Nova de Gaia district suppliers such as life com- port they need.” is the fact many of them
of greater Porto, Portugal’s panies and funds houses. A few days later one of have known one another
second-largest city, that Watching his colleagues Davies’s colleagues added: for upwards of 20 years.
you can see your breath. wandering amicably in “I never worked in any As their careers took
Around 30 mostly male the direction of the coach, company whose princi- them around stations of the
financial advisers are being Switzerland-based, UK- ples are as high as here. cross of the UK offshore
Key pointS herded on to a coach that born Spectrum consultant I left the last three firms I financial world such as the
will take them back to their Robbin Davies, seated just worked for because they Isle of Man, Luxembourg,
Spectrum is marking its hotel from the Graham’s behind the driver, likens were the opposite.” France and southern Spain,
seventh year in business Port winery, where they the annual conference to these advisers formed
in 2010. have just had dinner, a family reunion, and says friendships that outlasted
l Long-term friends
Founders and former Hansard having previously been the gathering and others their various postings,
colleagues Michael Lodhi, given a tour of Graham’s like it are an important part While it is not unusual for and which evidently have
Anne Ollerenshaw and David 120-year-old port-making of the company’s success. employees to gush about grown deeper since many
Holmes set out in 2003 to facilities. The second “Being an IFA is a lonely their employer in the pres- of them joined Spectrum.
create a different intermediary
evening of Spectrum IFA business. You are judged ence of a journalist, some- Founders Michael
business model, including
share ownership and a sense Group’s annual conference by your results, and you thing about the way these Lodhi, Anne Ollerenshaw
of family. is coming to an end. have to produce them,” he Spectrum advisers behave and David Holmes are
Spectrum holds its explains. “Michael [Lodhi, around one another, and no different. Their paths
Product providers praise the annual conferences in a one of Spectrum’s co- in the presence of the three first crossed in the early
company’s ethical and risk-
aware philosophy.
different city each year, as founders], recognises this, founders, suggests that it is ’90s, when Ollerenshaw
a reward for the company’s and designed Spectrum not just an act. and Holmes were working
March 2010 [www.international-adviser.com] INTErNaTIONaL aDVISEr 37

2. intermediary profile Spectrum ifa Group
“
When we set up for Hansard International
fact file finances that what might
on the Isle of Man, and happen to Mrs Smith at
Spectrum, we felt it Lodhi was an adviser for Founded: 2003 home with the three Smith
Mondial, the direct sales children if something were
would be a good idea arm of Hansard. At that
No. of clients: around 6,500
to happen to Mr Smith that
if we controlled our point Lodhi, who today is No. of employees: 46 advisers, seven other employees Mr Smith begins to think
based in Luxembourg, was Locations: Six countries (see box out below) it might be a good idea to
own destiny – that working out of Mondial’s have a Plan B in place.”
No. of offices: 11
is, that the people Benelux office. Lodhi adds that most
“Then Anne went out Website: www.spectrum-ifa.com of Spectrum’s clients “are
who were working to work in the Far East, I more sophisticated than
in the business left Hansard in 1998, and separate entities – in Barcelona tend to be work- that” but still argues that
”
Michael got involved in some cases working for ing, and their needs are for many people who are
owned a part of it a brokerage operation in national companies, such different from the retired struggling to balance pay-
Michael lodhi, chairman Luxembourg,” says Holmes, as Baskerville Advisers in clients who live on the Côte ments for cars, televisions,
and co-founder, Spectrum an Isle of Man native who Spain and TSG Insurance d’Azur, Malaga and so on.” mortgages and children,
Ifa group remains on the island. Services in France – which “financial planning is gen-
“So we did not work in turn are under con- l Hand of technology erally a low priority”.
together after 1998 again tract to Spectrum, through Like most advisory firms
until we founded Spectrum which they are licensed The Spectrum found- with offshore and expatri-
in 2003 but we knew each and under whose banner ers note that technology, ate clients, Spectrum advis-
other all that time. And they market themselves. which was partly respon- ers work entirely on a com-
as you know, the inter- sible for the rapid growth mission basis, a model that
national financial services l Client type variety of the offshore advisory has fallen out of favour in
community is quite small business in the ’80s – with the UK, under pressure
and closely-knit.” Unsurprisingly for a firm the introduction, Holmes from the Financial Services
whose advisers operate in notes, of the fax machine Authority. UK financial
l New model 11 markets in six countries, – continues to shape the advisers have been told
Spectrum caters for a range industry as it evolves. that they will have to move
Lohdi, whose title is chair- of client types. “But our job is still to to a fee-based remunera-
man, says that when he, “Principally we are tar- talk to people, it is still a tion model from 2013.
Ollerenshaw and Holmes geting British expatriates,” relationship business,” says Lodhi is unconvinced
decided to launch their says Holmes. “They prob- Ollerenshaw. that commission is inher-
own firm, they looked at ably represent more than Adds Lodhi: “Financial ently bad or unfair to cli-
the kinds of companies 90% of our clients. But services have to be sold. ents, arguing that “what is
they had worked for, and we are able to do busi- People are not generally relevant for the customer
others in the industry, and ness with others living and pro-active about this stuff. is the total cost of the
decided to create some- working in the six countries I have been in this busi- transaction”.
thing different. in which we are licensed ness a long time and I At least one of Spectrum’s
“When we set up – providing they are happy could count on two hands suppliers vouches for
Spectrum, we felt it would to work with financial con- the number of times I this approach, at least as
be a good idea if we con- tracts that are in English.” have had phone calls from Spectrum practises it.
trolled our own destiny Ollenshaw, who is someone saying ‘I want to John Hall, business
– that is, that the people French by birth but lives sort out my retirement, I development director for
who were working in the and works for Spectrum out want to buy a life insur- Standard Bank, which
business owned a part of of Barcelona, adds: “Our ance policy’. provides such products
it,” he explains. “So we put clients vary enormously, “It is only once people as structured products to
in place a structure where- depending on the area. meet [a financial adviser] Spectrum’s clients, says it is
by the advisers, once they People who live in Paris or and start talking about their among the industry’s “top
had been with us for two ten” advisory firms, not-
years, would start earning european preSence withstanding its fee struc-
a piece of it. I think we COUNTRY OFFICES ture, and he praises “the
have about 35 sharehold- way they work [and] their
France Paris, Cote d’Azur
ers in total now.” ethics with their clients”.
While the shares do Spain Barcelona, Madrid, Javea, Costa Blanca, Costa del Sol What is more, he says,
not have any value at the Luxembourg Luxembourg City Lodhi is unusually adamant
moment, if the company by industry standards in
were at some point to be Netherlands Amsterdam his insistence that there
sold, they could, he says. Portugal Faro be no “soft commissions”
In the meantime, the hidden in the products
Spectrum advisers are Switzerland Lausanne Spectrum sells.
38 INTErNaTIONaL aDVISEr [www.international-adviser.com] March 2010