The market – UK mid 2000’s History – the “Man from the Pru” Anthony Sampson – “Anatomy of Britain”
The market – UK mid 2000’s Selling scandals High rates of initial commission Providers mesmerised by distribution Sir Callum McCarthy’s famous Gleneagles speech launched the Retail Distribution Review TJM – “win, win, win” Sir Callum – “lose, lose, nil score draw”!
The company – Standard Life Strong proud Scottish mutual Fought successfully against Woollard’s demutualisation attack in 2000 Downturn of 2002 prompted FSA to force demutualisation Company had to cut costs, re shape portfolio, could not afford to pay high rates of initial commission
The vision Convert Standard Life from a traditional insurer to a modern strong asset manager From selling to relationships Building value in distribution partners’ portfolios Superior client experiences and outcomes Individual and corporate wrap platforms
The implementation Sent four staff on fact finding trip down-under Developed business plan Obtained permission to proceed Scanned the market Internal IT wanted to build the system
The implementation Fought hard for agreement to go outside Fought hard for agreement to contract with small provider from NZ! (FNZ) – unknown at the time Fought hard to complete development Fought hard to sustain interest of intermediaries – Standard Life Business Club Results in time far exceeded original business plan!
The implementation II UK offers pensions, ISAs, offshore bonds, onshore bonds and private portfolios Corporate platforms make sense At Friends Provident (Friends Life) introduced corporate platform
The market – today (The Platforum UK Adviser Guide Issue 20 November 2014)
Page 12 The future (Future of wealth platforms EY October 2014) InformationOpen communityPrivacy limitationsSocially connected SalesInstitutional directProfessional sellersCustomer co-creators AdviceHolistic F2FNo/general adviceDigital targeted advice ChoiceProprietary fundsOpen architectureGuided research ControlTrusteeAdviserClient TechnologyMainframeClient-serverCloud RetirementDefined benefitDefined contributionAnnuities, protection InvestmentIndividual equitiesManaged fundsDirect, ETF TradingFull service brokingOnline brokingSocial investing fromto
The future Improve client engagement Innovate with product and service Leverage advances in technology