Financial Planning, by its very nature, covers a broad spectrum of areas which can, initially, appear confusing. This is especially relevant where one area of planning interacts with another, taxation being a case in point, and where you have been fortunate to build or inherit significant wealth.
Accordingly, a disciplined approach to planning is recommended. This approach should then ensure that all areas of planning are discussed and addressed.
To ensure we deliver advice in a structured and disciplined manner, the CPW planning process is based on the international standard for Financial Planning (ISO 22222).
The international standard for Financial Planning is based on a six-step planning process and CPW have tailored and condensed these six-steps into three stages to aid understanding.
The three stages can be summarised as the ‘Scoping’ stage, the ‘Research and Implementation’ stage and the ongoing ‘Review’ stage.
“Planning is bringing the future into the present so that you can do something about it now.”
― Alan Lakein
The financial services industry is notorious for its jargon.
We understand this does not help build trust, which is a vital ingredient in a business relationship with our clients. We are aware that some of the terms used above are industry jargon, so in our endeavour to build trust with our clients, we will attempt to clarify some of the terms utilised above.
To assist us articulate ‘what we do’, and break through some of the jargon, we have set out some background information from KPMG’s excellent research document entitled ‘UK Wealth Management at the tipping point?’ kpmg.co.uk - date 2012 and followed that up with our own definitions of much used and rarely defined services:
Although the materiality of any value-add to clients from ongoing services will come under regulatory scrutiny, it is likely that relationship – as opposed to product-led models – will better support ongoing service propositions:
Financial planning necessarily evolves as clients’ needs and circumstances evolve. This will require regular reviews that may call for strategic or tactical adjustment to investment, credit or protection programmes or require other advisory or administrative services “Financial planning should inform the investment decision and not be an optional bolt-on.” Survey respondent
A banking or investment management-led relationship management model tends to focus on specific product sets, and constitutes, therefore, a narrower base for ongoing services’
Wealth Managers have often struggled to incorporate financial advisory capabilities into the traditional model in which the relationship manager is also the portfolio manager. Firms that have introduced financial planning and pension advisers, commonly treat this as ancillary to “running the money” rather than as a means to build more holistic relationships.
Source - KPMG "UK Wealth Management at the tipping point?"
In an attempt to clarify these often-used financial services descriptors, Chetwood Private Wealth sets out its own definitions of these commonly used financial services terms:
Seeks to understand each client as an individual and develop with them their personal planning objectives. We design and implement a strategy and keep it up to date via a thorough review process to deal with life’s inevitable twists and turns. This is the foundation on which all other services are built.
Running the money! Whether that is self-directed, managed on an advisory or discretionary basis, deploying passives/trackers, ETF’s, investment trusts, individual stocks, OEICS, environmental, social and governance mandates, or any combination thereof. It is one of the nine heads of planning, albeit a highly important one.
Builds on the financial planning foundations, incorporates an investment strategy and interconnects with the legal and accountancy world generally via your existing solicitor and accountant. True wealth management, in our opinion, can only be delivered by an experienced, highly qualified, independent advisor who will pull together the patchwork quilt of financial products acquired through life with an all-encompassing strategy incorporating financial, investment, legal and tax advice.
Chetwood Private Wealth
60 High Street
Tel: 01823 666 809
Fax: 01823 666 552
For any general inquiries, please fill in the following contact form: