In the post-Retail Distribution Review world advisers will need to evolve away from transactional-based ‘advice’ to develop holistic financial planning services to stave off competition from online execution-only offerings, according to Forty Two Wealth Management’s Alan Dick.

Mr Dick, who was earlier this week confirmed as the new vice-president of the Institute of Financial Planning, warned that the prevalence of online direct-to-consumer services is likely to grow from 2013 and that some advisers could be squeezed out of the market.

In an interview with FTAdviser on his firm’s RDR plans, to be published later today, Mr Dick argues that services such as execution-only which allow customers to easily choose and buy their own products online will directly compete with advisers who focus on the sales side of business.

Drawing a distinction between such a sales-focused offering and a tailored financial planning service, he says advisers should take a more goal-oriented, long-term financial planning approach, thus continuing to provide a service that customers could not find elsewhere.

However, he warns that switching approaches is not an “overnight” process that could in fact take four or more years. He therefore warns that, with only four months left before the RDR comes into effect, currently sales-focused firms may find themselves out in the cold after the change.

Mr Dick said: “It takes several years and a lot of time to convert clients. It took us four to five years but we have only got four months until RDR and everyone I have spoken to about the transition has said it is a five-year transition.

“You have to have new business coming in but that isn’t the main focus anymore because you have made the focus transition to recurring income.”

Article source: http://www.ftadviser.com/2012/08/31/ifa-industry/advisory-companies/ifp-vice-president-ifas-must-evolve-beyond-advice-post-rdr-i7PxOyEgd6y3ssSGQxdTyN/article.html

The clients will now be looked after by Perspective’s Marlborough office, Equilibrium Wealth Management.

Kingsworld Walder was previously based in Gillingham, Dorset and run by managing director, Jeffrey Martina, who has now retired. Equilibrium will be servicing Kingsworld’s client base through its existing IFA team and no staff will be transferring to Equilibrium as a result of the acquisition.

Kingsworld operated with funds under management of £26 million and recurring income of £125k per annum.

All Kingsworld Walder clients have been contacted and Equilibrium advisers are now conducting a series of initial meetings to make transition as smooth as possible for individuals.

Perspective Financial Group is one of the top 15 UK financial advisory firms by revenue size. At present it operates out of 23 offices and employs over 230 people. The Group’s annualised turnover is in excess of £23 million, with around £2.5bn of assets under management.

Damian Keeling, managing director of Perspective Financial Group, said: “While most of our acquisitions are of advisory practices which can fit comfortably into the Perspective structure, we are also supporting our regional offices with client bank purchases. The deal to bring the Kingsworld Walder client bank within Equilibrium has now been completed and we can begin the work to ensure the transition for those clients is as seamless as possible and that they continue to have access to first-class financial advice.

“As we move towards the RDR deadline it seems obvious that more advisory practice owners will be weighing up their options and some, like Jeffrey, will choose to retire before the new regime kicks in. Perspective now has a truly national offering and we continue to be interested in talking to any individuals who are still considering their options as we move into this new environment.

“We are open to working with quality, profitable practices in a number of ways, whether it is through client bank acquisition or bringing the entire firm into the Group. The fact is that time is running out – January 1st 2013 will be with us before we know it – and advisers need to make decisions quickly. We are always available to take those calls and answer those questions in order to help firms along the path to their post-RDR incarnations.”

Tony Apps, managing director of Equilibrium Wealth Management, said: “Part of the attractiveness of joining an advisory group like Perspective was the opportunity to grow the office through acquisition and this is proof of our commitment to do just that. We are continually on the lookout for commercial opportunities to expand Equilibrium and the Kingsworld Walder deal provides us with a client bank which has historically received quality advice and has a need for this to be continued as seamlessly as possible. We are pleased to have completed the acquisition and have already begun working with former Kingsworld clients to introduce ourselves and to ensure they continue to receive the best quality financial care, advice and guidance.”

Article source: http://www.mortgageintroducer.com/mortgages/244199/5/Industry_in_depth/Perspective_acquire_client_bank_for_Marlborough_office.htm

Advisory firm Perspective Financial Group has swooped for the client bank of a rival firm.

The Wilmslow-based company has bought the clients from Dorset financial adviser Kingsworld Walder.

The assets bought represent £26m of funds under management, which generate a recurring income of £125,000 a year.

Perspective operates out of 23 offices and employs more than 230 people across the UK.

It has already carried out four acquisitions of wealth management firms this year.

Managing director Damian Keeling said: “While most of our acquisitions are of advisory practices which can fit comfortably into the Perspective structure, we are also supporting our regional offices with client bank purchases.”

The Kingsworld clients will be looked after by Perspective’s group office in Marlborough, Wiltshire, run by Equilibrium Wealth Management. No staff are transferring.

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Article source: http://menmedia.co.uk/manchestereveningnews/news/business/s/1587653_perspective-swoops-on-rivals-clients

By a staff reporter

Aspen Group Ltd have identified 2013 as a key year for the simplification of their business through the enhancement of recurring income, after unveiling a massive loss for the financial year.

Aspen announced a $99.808 million loss attributable to security holders for the year to June 30, a 673 per cent drop from its $17.245 million loss in 2011.

Revenue from ordinary activities fell 27.6 per cent to $68.979 million, from $95.279 million in the corresponding period.

Aspen paid a distribution per security of 3.15 cents, down from the previous year’s 4.2 cents per security.

Aspen announced a back-to-basics approach for 2013, pinpointing the coming period as being a “key year” in the transition to a “simpler business”.

Earnings guidance for FY13 will be provided following the completion of a strategic review, likely to recommend a focus on core strengths to de-risk and improve shareholder returns.

Aspen Group chairman Frank Zapfinger says the growth of quality earning streams is a key focus of the review.

“The strategic review reflects the commitment of the Board to identify and communicate a clear path forward for the group,” he said.

Article source: http://www.businessspectator.com.au/bs.nsf/Article/Aspen-posts-massive-FY-loss-pd20120831-XNV5T?OpenDocument&src=hp6