1973 - 2008

LBA Corporate Club – March 2010

TODAY, we can either:

You tell me your burning questions and I’ll deal with them,

OR

I will go through• A snappy overview of our world today• A step through professional practices concepts• Regulation – once over lightly• 1 SIMPLE idea that will help you today• Highlight the things that will get you through the next year• Q & A time….

1973 - 2008

Our world today….an Overview

• Advisers still have choices:

1. AFA – Authorised & Registered Financial Adviser

2. RFE – Registered Financial Adviser

3. QFE based practitioner – agent as RFA, AFA, employee?• The law (F.A.A.) is known. The Code of Professional Conduct

is not – but we’re 90% sure.• Education standards required are sorted.• “Financial Planning Service” is the big trap.• Not all clients are good clients – WARNING!• Remuneration pressure, and consumer pricing pressure.• Selling on price is a dying business.

1973 - 2008

The Adviser facing Regulation

1973 - 2008

What is “Professional” Practice?

In simple terms?

Doing the right things right, and, doing right while doing them.

• Good process = managing expectations, being transparent, being client focused, analysing and considering different solutions, recommending the best for the client, helping them get the solutions put in place, then holding their hand and continually checking it’s still good.

• Sound like a 6 Step advice process?• Be prepared, practiced, polished…with a work ethic. That’s

Professional.• Be Ethical? Ethics are the morals of business, and what is

moral is what you feel good after…..

1973 - 2008

Regulation & the BIG adviser decision

What’s the best licensing structure for you?

Become an AFA (Cat 1 or 2 products) and licensed direct with Securities Commission.

• Become an independent RFA (cat 2 products only)• Become either an AFA or RFA under a QFE?• Leave the business?

1973 - 2008

The Questions That Work It Out

1. Do I want to be a financial adviser?2. Do I want to offer a full range of advice and product choice?3. Am I happy to be restricted to Category 2 products only then?4. Do I want to avoid being aligned with any particular supplier?5. Am I happy then to be aligned to a particular supplier?6. If so, which ones are the possibilities for me?7. How restrictive would the supplier QFE be in terms of product choice

for my clients and I?8. Does that QFE have the right people and systems in place to support

me as an aligned adviser?9. Are that QFE’s people and systems better than the others in my view?10. What is my financial or production commitment to the QFE?11. Once regulation is in place, will the QFE be a good business partner?12. Will they help me grow my business?

1973 - 2008

A Great (& simple) idea – an “agenda”

1. INTRODUCTION & Full Disclosure

2. EXPECTATIONS:

What are your expectations of an Advisor?

What are my expectations?

3. CHOICE :

Place an Order or Personalised Advice for you?

4. AUTHORITY TO PROCEED

Scope of Service:

□ As per your order; or

□ Limited Advice; or

□ Full Advice Process

1973 - 2008

1973 - 2008

1973 - 2008

1973 - 2008

1973 - 2008

What’s the future for the professionals?

Fantastic!!

• Fewer competitors• More supplier demand for you• More WAYS of earning money• More money to be made• Easier to move into preferred markets• Professional standing with clients & in community

1973 - 2008

…in conclusion….

I hope we have been leading you in the right direction…

…any Questions?

If not, thank you and good luck.