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Mail Madness! Simple customer service that’s easy to forget

April 15, 2013

I can’t remember the exact date that I got my very first e-mail, envelope but since that fateful moment I’ve been under its spell.

I will not be alone in thinking that e-mail has controlled me and been the thief of time over the last 15+ years or so.

I also have tried on many occasions to change my relationship with the electronic menace and to better disciplined (like my colleagues!) and have better “systems” for dealing with my inbox.

Whether its just a symptom of my personality or just plain stupidity, nothing has really worked until now…

I have now discovered a fantastic system that sorts out my emails into the really important ones and the ones that can be read later and puts them into my inbox or not.

It does a whole lot more besides and I’m not doing it justice here but that is only a small part of the point I wanted to make.

The reason I so happy with my new email system is not just that it works and does what I need it to do, but it was the experience from a customer perspective that rang my bell most.

The trialing and buying of the system was all done remotely and was just fine, but there is always that slight feeling of “what have I done” after handing over money when I’d had no contact with anyone at the company.

One personal email thanking me for purchasing from the system’s owner and creator (correctly allowed into my inbox!), and I felt vindicated, valued and happy.

I did actually email him back to say how I felt and the real point is saying thanks to your clients and customers is key to ensuring that they or their business don’t feel taken for granted.

It’s such a simple thing to do that we simply don’t do enough.

Thanks to Stuart for reminding me to thank my customers better and more often.

Back to my emails I think…

Roland Oliver

PS – please get in touch if you want to know more about the system.

The Price of Advice

April 12, 2013

In the build-up to – and in the aftermath of – the Retail Distribution Review advisers up and down the country have been scrambling to find a charging mechanism that works.

For many the end of commission has been a death knell; bond pushers that used to take up to 7% initial and advisers that offer no ongoing service have found themselves suddenly having to become transparent and losing client interest as a result.

There is no doubting that this is a very positive thing; for a long time the smoke and mirrors in financial services have served to cloud the clear picture to consumers.

In terms of pure economics, the worst thing about lack of transparency in a marketplace is the fact that the market cannot operate efficiently and competition is hindered. And the moment competition is hindered consumers get a bad deal.

For a charging structure to ‘work’ it must be fair, not daunting, actually cover the work being done and cover costs the clients don’t see – regulation, compliance, software etc.

The charging structure must also be manageable. We have seen difficulties with some investment platforms as to the logistics of how the product fees to the adviser are actually generated. Some say nothing has changed, some require a wet signature on a fee statement for each and every piece of business, and some require us to manage a time consuming and complex method of moving money around within a client’s investment to cover charges.

As a business trying to do the best by our clients and get paid properly for the valuable work we do, without any hidden agenda, it can be challenging. Edinburgh_Castle_-_geograph.org.uk_-_28

We have discussed every way we can structure our fees so that they are attractive, fair, workable, easy to implement and simple.

Each time we reach this undeniable fact: a simple initial and ongoing fee, not linked to the value of the assets managed and paid externally from any platform, is the only way forward.

It will take time to implement fully, but we shall be extracting ourselves from any overly complicated or confusing charging and shouting the virtues of this from the ramparts of Edinburgh Castle.

The Greatest

March 27, 2013

The use of positive affirmations is often used by personal and business coaches as a way of creating the right mindset in order to help you achieve goals and targets that can appear beyond you.

Tony Robbins has long used the fire walk as away of demonstrating how your mind can overcome obstacles (in this case 1000 degree burning coals) to achieve great physical feats. Muhammad Ali

Famously Muhammed Ali declared “I am the greatest” and not many argued that he wasn’t.

My personal favourite was attributed to Henry Ford who said “whether you think you can or think you can’t, you are right”

All very touchy feely and New Age, Roland, but what’s the point?

Following on from my “No Hidden Agenda” blog, there were a number of positive comments. Many agreed this when dealing with large financial institutions and how that it is incredibly difficult for these types of business to win back customer trust.

There might be real determined and skilled management at the heart of these businesses but if the people really don’t believe, then you’re fighting a losing battle.

My local branch of Lloyds TSB were throwing out so may negative and unhappy vibes recently at the teller level, I nearly got the rope out…

Naturally it leads to a poor customer experience and unsatisfactory feeling all round.

I truly pity the poor front-line staff at any Cypriot bank when it opens its doors again on Thursday.

I’m very lucky that the people that work with me have a serious desire to provide the best service they can to clients and go the extra mile.

We like to believe that this approach is both nature and nurture but you have to continue to want to do better and create the right business attitude and environment to do this.

Providing a better service, more enjoyable customer experience is what we are all about.

I personally don’t think banks in the UK will ever regain their status in the eyes of the public and the new paradigm is businesses that do care about their clients and the service they offer.

I also think as a nation we need to vote with our feet more than ever and if you have any doubts about how you will looked after and treated by any business, then look for somebody else.

Our Second Opinion Service is designed to provide prospective clients with a view on the current service they receive for their adviser and suggest one of three possible outcomes;

continue with your existing arrangements as it works.

here is the name of an adviser that might be better suited to your requirements.

or you might want to considering working with us.

Either way, you’ve nothing to lose and we might just be your greatest decision.

Roland Oliver

No Hidden Agenda

March 18, 2013

As previously mentioned by Claire in her blog, we recently ran a seminar on our approach to customer-led Wealth Management.

Of the number of noticeable comments made was that the attendees felt that the was “no hidden agenda” in our presentation and that people could see that we clearly had an interest in providing a service that had them at the centre of it.

As big business and politicians continue to try and win back our trust, the phrase “no hidden agenda” keeps coming back to me.

We are all incredibly sensitive to this feeling. Dealing with anybody providing a service of any type today must make sure that our needs are being met in a way that suits us first and not the provider.

Whether its a local restaurant, or high street bank, hiding you must be clear about what you are providing to your customer as nothing will sour the relationship quicker than the discovery of a hidden agenda.

The gaining of a client’s trust is a privilege that is repaid in long term customer loyalty. In the post RDR world when fees are going to be scrutinised, ensuring you don’t lose it through any hidden agenda is crucial.

In a day when the the Cypriots are perhaps finding out about another hidden agenda, its clear to me that we need to continue to be clear, open and honest about what we do for our clients.

In case you were counting, I mentioned the phrase “no hidden agenda” 5 (6, if you include this one) in this short blog.

Nothing to hide here.

Roland Oliver – March 2013

Wealth Management Seminars

March 15, 2013

Anyone who follows us with regularity will know that we are passionate about what we do here at Oliver Asset Management and committed to providing a superior wealth management experience.

We decided early on this year that it was crucial for the business to spread the word about what we do and help educate people in how they can manage their finances better with our help.

If you follow us online or receive our newsletter you will have known we had our first seminar last night at the prestigious Greywalls hotel.

I am delighted to note that the inaugural event was a great success and provided us with the opportunity to meet some new and very interesting people.

I am also pleased to note this will be the first of many seminars for 2013 and if you missed last night and would be interested in hearing more about our next seminar do get in touch or keep checking in on the website.

We’ll be confirming the next date and location soon!

Dr Claire Armstrong

2012: The year it didn’t happen

January 9, 2013

Judging by the headlines in the financial press, investors spent much of the past year anxiously awaiting one calamity after another that failed to occur. The plunge off the so-called fiscal cliff was averted. The euro zone did not fall apart. China’s economy and stock market did not crash. The bond market did not implode. The re-election of President Barack Obama did not derail the US market. Doomsday did not arrive on December 21, as some interpreters of the Mayan calendar suggested it would.

Instead, the belief that owning a share of the world’s businesses is a sensible idea appears to be alive and well, despite suggestions from some observers that the “cult of equity” is dead. For the year, total return was 16.42% for the MSCI World Index in local currency, and 16.00% for the S&P 500 Index. Among forty-five global stock markets tracked by MSCI, only three posted negative results in local currency (Chile, Israel, and Morocco), and twelve markets had total returns in excess of 25%, with Turkey leading the pack at 55.8%. Although much of the financial news over the past year highlighted Europe’s fragile financial health, most of the region’s equity markets outperformed the US, including Austria, Belgium, Denmark, France, Germany, the Netherlands, Sweden, and Switzerland. For US dollar-based investors, results were further enhanced by a modest decline in the US dollar relative to the euro, the Danish krone, and the Swiss franc.

As is so often the case, earning the rewards offered by the world’s capital markets may have required a combination of discipline and detachment that eluded many investors.

We always advocate this kind of investment approach and encourage clients to rise above the noise of day to day fluctuations and ignore the temptations of market timing and speculation.

2012 Index and Country Performance

Total return (gross dividends) for 12-month period ending December 31, 2012.

MSCI Index	Local Currency	USD
WORLD	16.42%	16.54%
WORLD ex USA	16.73	17.02
EAFE	17.89	17.90
EMERGING MARKETS	17.39	18.63
EMERGING + FRONTIER MARKETS	17.15	18.35
TURKEY	55.80	64.87
EGYPT	54.66	47.10
BELGIUM	38.56	40.72
PHILIPPINES	38.16	47.56
THAILAND	30.84	34.94
DENMARK	30.37	31.89
GERMANY	30.07	32.10
INDIA	29.96	25.97
HONG KONG	28.01	28.27
POLAND	27.05	40.97
AUSTRIA	25.07	27.02
SOUTH AFRICA	25.07	19.01
COLOMBIA	23.87	35.89
SINGAPORE	23.54	30.99
NEW ZEALAND	23.28	30.38
CHINA	22.85	23.10
JAPAN	21.78	8.36
FRANCE	20.93	22.82
AUSTRALIA	20.77	22.30
MEXICO	20.09	29.06
PERU	19.73	20.24
THE NETHERLANDS	19.35	21.21
SWITZERLAND	18.91	21.47
SWEDEN	17.11	23.41
USA	16.13	16.13
FINLAND	14.71	16.50
KOREA	12.89	21.48
TAIWAN	12.84	17.66
HUNGARY	11.86	22.79
INDONESIA	11.83	5.22
ITALY	11.72	13.46
NORWAY	11.63	19.70
UNITED KINGDOM	10.24	15.30
MALAYSIA	10.23	14.27
BRAZIL	10.14	0.34
RUSSIA	9.73	14.39
CANADA	7.46	9.90
IRELAND	4.66	6.29
GREECE	4.11	5.73
PORTUGAL	3.36	4.98
SPAIN	3.12	4.73
CZECH REPUBLIC	0.26	3.48
CHILE	–0.14	8.34
ISRAEL	–6.24	–3.91
MOROCCO	–12.63	–11.48

To speak to us about how our investment philosophy could help you contact us on 0131 273 5202 or use the form on the website.

Malcolm Stewart

Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.

Automatic Enrolment

September 21, 2012

In more recent months the trend in our new enquiries has been from small to medium business owners who are not only picking up on the need for business protection but are also now looking into alternative savings for the business liquid assets AND the requirement to provide a company pension scheme under the up and coming automatic enrolment.

If you follow our blogs you will know we’re no strangers to business protection in fact we feel quite passionate about it and more recently we have posted commentary on the structured deposit accounts as an alternative for business cash holdings. We will no doubt continue to revisit these topics with regularity but for this week auto enrolment is the focus.

Although most employers won’t have their staging date until 2015/16, there’s a lot to do to plan and prepare for automatic enrolment. For example, employers will need to consider the cost implications and make sure the right systems and processes are in place to meet the new employer duties. On average, this could take up to two years so it is important employers start to prepare early and as I would say there is no time like the present.

Scottish Life* estimate there will be around 9 stages to the whole process starting off with Employers reviewing their current pension scheme and comparing it to the new requirements to identify any changes needed. If they don’t have a pension scheme, they’ll need to set one up.

Then it will be on to assessing the workforce to determine which types of worker they employ and the duties they have for each type of employee. Following this it will be time to consider the different scheme options available and how these will impact on the employer’s business and workforce.

When the right solution is designed there will need to be agreement on what this solution means for the business and one crucial factor will be ensuring the employer has the right balance between costs and administration of whatever scheme is to be put in place.

With the right scheme design ready and approved it will be important to then review internal processes, that is payroll and HR, as the employer will need to ensure they comply with the new requirements and can work to help keep the scheme compliant.

Depending on the nature of the business Unions may be involved and they will have to be consulted to ensure there is full agreement on the basis of the scheme or contracts of employment.

With all of these considerations covered it will then be time to implement the changes agreed and to ensure the scheme can run smoothly day to day, the workforce is engaged and provided with the right information at the right time.

The final stage will be to run the scheme and ensure the employers continue to meet their duties on an ongoing basis to remain compliant at all times.

It does seem like a lot of work and a long process but it doesn’t have to be daunting and we are already helping firms to make the first steps into the process so they are in a position to make the right decision for their company in good time without a deadline looming over them.

If you are interested in finding out more and would like to discuss the detail of how this could work for you we would be delighted if you got in touch, no time like the present to take a step in the right direction.

We look forward to your call.

Dr Claire Armstrong

*Scottish Life online resources published June 2012 (37W1107)

Structured Deposit Accounts

September 12, 2012

When I was recently asked to look at the Zurich Jade deposit account, I immediately rejected it out of hand as a “Structured Product.”

But we have spent a great deal of time understanding what the product is, what it can do, where the risks lie and whether it was something we would feel comfortable recommending to clients in the right circumstances.

I’m grateful to Tony Davies and Ian Black of Zurich for taking time to go through the product in detail and make us comfortable with it.

In essence, it’s a deposit account, held in real cash with an interest rate linked to a basket of stocks. If all the individual shares are up in any way a year after the strike date, you receive the full declared coupon (currently 6% or 8%, depending on term) and if some are up and some are down, a calculation is done to lower the rate.

The minimum return you could receive in a year is 0% – thus you will definitely receive at least the whole of your capital back at the end of the term, 3 or 4 & 1/2 years.

Given the current low rates of interest, using a portion of your longer term capital to try and improve returns makes sense. In particular, companies sitting with large cash deposits should consider this carefully.

I also like Zurich’s approach to protecting the risks associated with the derivatives involved by insisting that the issuer deposit cash with Zurich equivalent to level of exposure!

Belt and braces from the cautious Swiss.

It’s not for everyone as the starting point for access to it is £100,000 and if you can commit £1m, then you can create your own bespoke account.

In summary, if you want a bank account that could pay you substantially more interest than you currently receive and are prepared to tie up your capital for a period of time and are comfortable with the low risk and capital back guarantee, then contact us today for an application pack and more information.

Roland Oliver

EU Gender Directive – 104 days to final deadline

September 7, 2012

A short while ago I blogged on the up and coming EU Gender Directive which will come into effect after 21^st December 2012.

The deadline date is now fast approaching and we feel really there is no time like the present to shout again about these changes and the impact they will have on any cover you have in place or plan to do

Just as a reminder, from 21 December 2012, the EU Gender Directive means that men and women will be treated the same when it comes to insurance premiums. Whilst also affecting car insurance and retirement annuities, the new European gender law will have significant repercussions for life, critical illness and income protection cover. The gender effect will result in most women having to pay more for life and critical illness – around 15%*, but less for income protection. Men, on the other hand might enjoy some reductions to the cost of life and critical illness cover, but pay more for income protection.

From January 2013, most life insurance companies will be required to pay more tax; raising more revenue for the Treasury, pushing up life insurance costs for insurers and ultimately their customers. Experts estimate this could increase costs by around 10%**, largely offsetting any wins from the gender changes.

The double whammy effect means that generally for both men and women the cost of protection is set to go up.

The extent of change will vary by provider, will differ by product class and be determined by the individual circumstances of the client. Added to this, we expect to witness a fair amount of re-pricing activity in early 2013 as providers attempt to get to grips with the new gender neutral world.

Liverpool Victoria have provided some useful figures which are based on their analysis of the entire market and some of the predictions made by key stakeholders and experts, and these are noted below to give you an idea of the potential impact this directive may have:

These statistics stand as a stark reminder that now is the time to act, particularly if you have cover on risk you want to review or increase or if you have been wavering on whether or not it’s the right time to look at applying for personal protection.

All applications submitted between now and the 20^th December must be fully underwritten, accepted and on risk to avoid the new Directive and in our experience whilst most cases go through within 1-2 weeks some cases can take much longer depending on underwriting requirements and your personal circumstances.

Don’t fall foul of thinking there is still plenty of time, there are only 12 weeks to go until we are into December and we all know how quickly that will go!

We would strongly recommend if you want to review your cover or put new plans in place you should be taking action within the next 4 weeks to ensure you don’t miss out on current pricing.

Don’t delay any further get in touch for a protection review and ensure you’ve got the right cover for the right price.

Claire Armstrong

Sources: * HM Treasury, December 2011; ** Actuarial Profession, March 2012

***In some cases, women pay more than men

**** Adding together the estimates provided by LV=, June 2012 and Actuarial Profession, March 2012. The changes to costs will vary by individual, product and provider. They could be lower or higher than the average 16% indicated.

Do I need a Business Will?

November 30, 2011

We’ve talked in recent weeks about the importance of considering business protection, identifying a need and considering your key man requirements.

We have also touched on Business Succession and it is with that in mind that we would ask – Do you have a business will? You would be surprised when this is asked how often the answer can be – “I don’t need it!”

As part of our Wealth Management Plan offering for clients we ask if they have considered putting a will in place and if they have already written one, when it was last reviewed.

It would be remiss of us not to cover this and in a similar vein it is crucial to any business succession planning that a business will is in place to ensure shares in a business go to the right people on the demise of Directors or key shareholders.

We feel it is vital that a business Director or key shareholder considers if they died or became critically ill, where their business interest would go?

In the first instance a company’s Articles of Association will deal with the issue of transferring and selling shares.

A company’s Articles of Association form the basis of the company’s constitution. They’re commonly referred to as the internal rule book of the company. The articles are chosen by its members and are legally binding on the company and its members. A company’s articles are subject to the Companies Act 2006 and can’t contain rules that would cause the company or its directors to operate outside the law.

When a shareholder dies, their shares will form part of their estate and ultimately pass to their heirs under the terms of their will or the laws of intestacy where they haven’t made one.

You wouldn’t want to die and leave your personal wealth subject to the rules of intestacy so why take the risk with your business assets?

It is vital that firms understand and know what their Articles of Association say about how shares transfer. All those likely to be affected by the death or critical illness of a shareholder need to know if the Articles enable the shareholders to do what they want with their shares should the worst happen.

If the articles are found to be lacking in terms of the preferred instructions then they can be amended by a Solicitor and a Business will can also be completed to ensure that everyone involved has the peace of mind that the value they have within a business will be protected and pass to their chosen heirs when the time comes.

If you are unsure about what you already have in place and want to revisit your existing arrangements we are happy to offer a second opinion service to look at your Articles and business will.

If you still need to put a business will in place then don’t hesitate any longer, let us look at your business and what is required and make the step to having everything reviewed and protected for the New Year.

Check in again next week where we will discuss in more detail how a business will can work in conjunction with a cross or double option agreement to ensure capital is paid back into the business if required or to the heirs of a deceased shareholder.

Claire Armstrong