A trio of advice industry members have joined forces to set up an action group called ‘Financial Planners United – Striving for Improvement’ on LinkedIn, in a bid to tackle the sector’s biggest issues.
The group was set up by Victoria Hicks, a former adviser and now M&A consultant, Phil McGovern, Birmingham-based director of MPA Wealth Management, and Phil Dibb, founder of compliance firm DW Regulatory Consultants.
The purpose of this group is:
- to unify the profession;
- to provide a voice to the smaller firms that are unrepresented and facing often unfair challenges;
- to protect the smaller firms committed to improving client outcomes.
It is looking to tackle issues such as professional indemnity (PI) insurance, Financial Conduct Authority (FCA) fees and levies, compliance and regulation and improving consumer confidence.
Stronger in numbers
Financial Planners United said in a statement on Linkedin: “The financial planning and wealth management profession continues to enhance financial stability, build confidence and improve lives.
“As advisers, and business owners we never take for granted the level of trust we are afforded, and the importance of our roles in improving the financial well-being of the families we work closely with.
“The nature of our great profession, means that small and medium sized firms share common goals and deliver great advice, whilst operating disparately across the country.
“Together, we can tackle these issues, demand to be listened to, protect the smaller firms respected and valued in their local communities and ultimately improve the profession.”
The group had 261 members at the time of writing.
Expensive profession
International Adviser spoke to Financial Planners United co-founder McGovern on why he set up the group.
“I was particularly racked off when we got our FCA bill a month ago,” he said. “We run a successful IFA practice in Henley in Arden in Warwickshire and we plan the business well so we can meet our bills and liabilities when they fall due.
“We had a large increase last year and when I queried it the FCA said it was because they look at an average turnover of two years and the previous year. We then forecasted that it would be around £72,000 ($94,520, €80,000) this year and when it came through it was £109,707.
“How can you plan a business that way? They are now charging 2.8% turnover for regulation.
“Then there is the PI bill, which will be around 3% turnover. This can’t go on. It’s crucifying businesses large and small. We don’t seem to have any effective representation. I wrote to my MP and he responded but that doesn’t do anything.
“What we want to do is to try and galvanise advisers to have a voice and make the FCA understand that this is not acceptable or fair and we should not be paying for the sins of everyone else.
“If we can do something no matter how small it must make a difference. All the while trying to run a business in this climate.”
