• 'Off the shelf' software.
• Commercial enterprises dealing solely with specific aspects of traditional business.
• Audit thresholds being raised, and business lost to bookkeepers.
• Advent of specialist 'Management Consultants' and one stop 'Business Services' providers.
• Tax returns completed by 'Tax Shops' on the internet.
• Legislative changes.
• Increase costs and regulatory burden of providing financial advice.

• Look to be more broadly based in the products and services they offer.
• Will naturally look to replace lost and threatened income.
• That these are the main reasons for considering working with Financial Advisors

• Greater perceived client service. Research shows that clients wish for quality financial advice. And that they wish this from their Accountants, as they perceive them to be more credible and trustworthy.
• Additional business opportunities. The information obtained during a formal fact finding process by the IFA can have great value to firms by highlighting areas of other potential business.
• Extra quality income for the Practice.
• Improved client retention. It is often difficult for firms to maintain contact. Financial Services offer another ongoing connection. Avoiding the annual purchaser mentality, and promoting the ongoing client relationship.
• Return referrals. Contrary to what is the norm; Lowndes Alexander Daniel do introduce their clients to Accountancy connections.
• Joint activities. Whether offering CPD training [prior approval by ICAEW] or joint seminars, we do look to share ideas and information. Often through our ongoing newsletters.
• Reduced risk of losing clients to other professional firms. Eliminates risk of your clients IFA referring him to another Accountancy Practice.
• Helps with client risk management. Promotes an holistic approach to clients advice needs, e.g. Pensions Simplification.
• There are regulated products that aid significantly with such areas as ongoing CGT and Self Assessment processes.

Objections to a formal relationship often given to
Lowndes Alexander Daniel Ltd in the past.

• We don’t have enough time. We are pressed as it is to focus on matters directly related to our own profession.
• How can we trust the IFA.
• We don’t know enough about financial services.
• We are worried about compliance.
• This work does not fit with our culture.
• Complexity of dealing with accounting for commission, clawbacks and additional administration.
• We lose control.
  

• An agreed and accepted written professional service standard.
• If required, feasibility business plan with detailed financial model.
• Open to any due diligence or third party reference.
• Ensure introducing firm has overriding control of client relationship. Both formally and informally.
• Software that delivers accurate commission and fee tracking, details of incomes received supplied on a regular basis.
• A full array of working structures for a joint venture relationship.
• Regular feedback and training support.
• Help with business development and marketing.
• Full and ongoing compliance, administration and business processing responsibility.

In short, by putting clients first, and applying professional ethics and quality service standards, we are able to deliver true added value.

Ensuring your client relationship is enhanced and protected. And that the trading position and wealth preservation objectives of your client are maintained.

Alternative Structures for Joint Venture Relationships

Summary of the Alternatives

There are a number of different ways that the relationship between a Solacc and an IFA can be structured depending upon how informal or formal the parties wish the relationship to be and the relevant importance placed on such elements as compliance, audit trails, identity etc...

Outlined below is a list of five different structures that can be established. We then go on in this chapter to explain each structure in some detail, covering these various issues and explaining the relative advantages and disadvantages. Companies should choose the structure that they find most suitable bearing in mind their own particular objectives and concerns.

The main structures are:

A. Straightforward PTP/ATP Agreement: The Professional Connection provides client introductions to the IFA under a PTP/ATP agreement for which they may, or may not, be remunerated by way of a share of the income generated.

B. Trading Style: The Professional Connection provides client introductions to the IFA under a PTP/ATP agreement using a separate trading style in order to closely identify the clients, income and client referrals as being associated with the introducing firm. The Professional Connection is remunerated by way of a share of the profit generated.

C. Trading Style with a Non-Regulated JVC: The Professional Connection provides client introductions to the IFA under a PTP/ATP agreement using a separate trading style in order to closely identify the clients, income and client referrals as being associated with the introducing firm. A pre-determined proportion of the income is distributed to a non-regulated joint venture company (JVC) established between the two firms and profits are distributed to the shareholders by way of dividend payments.

D. Regulated Joint Venture Company (AR): The Professional Connection and IFA set up a joint venture company that is an Appointed Representative (AR) of the IFA. The Professional Connection provides client introductions to the Joint Venture Company under a PTP/ATP agreement. Profits from the joint venture company are distributed to the shareholders as dividend payments.

The following are some typical subject areas we work on with professional Connections and their clients.

1. Succession planning. Cross option/ Single option agreements.
2. Directors Retirement Planning [Growth] utilising self investment within SSAS/SIPPS.
   
3. Retirement Options.
4. Directors Retirement Planning [Income Payment] utilising Phased Retirement /Income Drawdown with USP income options.
5. Investment Platforms. Asset Management advice to Trustees.
6. IHT and CGT mitigation.
7. Review of existing Employee benefits and Pensions. Together with the installation of new Employee benefit provision.
8. Income Protection.