AXA presentation _ www.bit.ly/taiho123

‘Reviewing your choice of Platform in light of RDR’ Business Development Director Agenda  The impact the RDR platform paper may have on your business  Tips to support and enhance your ongoing platform due diligence  Delivering enhanced planning capability Future drivers impacting on business RDR and TCF will be the dominant drivers for the future changes Base: All Respondents (387) Source:on NMG Censusover February 2009 What future drivers will have an impact yourIFA business the next 12 months? Please tick all that apply Meeting the requirements of the FSAs Retail Distribution Review  From 2012 all Advisers operating as Professional Financial Planners will be required to agree the price of advice separate to any commissions generated through the sale of a product  Firms wishing to grow recurring revenues will need to demonstrate the value that clients continue to receive for ongoing advisor charges  Advisers will need to ensure absolute transparency of charges Single platforms vs independence  FSA accepts that for client groups where needs are similar and suited to benefits of a wrap platform, the use of a single suitably comprehensive wrap solution will not jeopardise advisers’ independent status FSA CP 10/29 – Use of single platform  One platform for all clients for all investments      Requires clearly defined client bank Similar range of needs and objectives Selected platform can address all needs Some clients will have needs not addressed by wrap These “outlier” clients would need to be “screened out”  One platform for all clients for most investments  A more likely, realistic and pragmatic scenario  Means “default” wrap used  Allows room for off-platform/niche solutions  One platform for some clients  Single wrap for defined group with same needs  Means off-platform or other platform used for clients outside this client group e.g one wrap per market Multiple Platforms or a Dual Charging Platform???? Composite Charges Explicit Charges (Bundled) (Unbundled) Annual Charges Initial Charges Transactional advisers ‘product-led’ Supporting transition Elevate Charge Financial planners ‘Investment-led’ Itemised charges Itemised charges Annual Management Charge Elevate Composite/Cofunds/Fundsnetwork/ /Skandia/SL Fundzone SL Wrap Fund manager rebates paid to client account Flexible Adviser Remuneration Initial Charge Net AMC Flexible Adviser Remuneration Elevate Portfolio Charge Elevate Explicit/Transact/JamesHay/ Novia/Ascentric/Nucleus/Lifetime  Tips to support and enhance your ongoing platform due diligence Wraps – a practical definition The FSA defines wrap platforms as follows: ‘Platforms are online services, used by intermediaries (and sometimes consumers directly) to view and manage their investment portfolios.’ FSA Discussion Paper on platforms, June 2007 Wraps bring operating benefits FROM THERE & THEN TO HERE & NOW #3 Funds supermark et Life and pensions Life and provider pensions Life and provider pensions provider #2 Trading Platform and Products Client Management Backoffice software SIPP provider POS / Advice tools #3 Exchange Life and Life and #3 pensions provider pensions provider #2 #2 Advice tools Back-office / MI Wraps = a venue for investment Due diligence  elements influence relevance & value of wraps: Type of client you wish to advise The relationship you wish to offer your clients The investment proposition relevant to your market  Some “niche” areas not served by wraps – yet!  So what should I consider when choosing a wrap… Due diligence Strategically  Identifying a wrap that meets: • The operating requirements of your desired business model • The investment proposition needs of your target clients • Criteria you use to assess fitness of a key business supplier Tactically (i.e client by client)   Confirming whether utilisation of the wrap platform you have selected is suitable for a specific client Deciding whether to “screen out” clients for whom a wrap-based proposition is not suitable Due diligence  FSA – Fact-sheet:  Platforms: using fund supermarkets and wraps (considerations when examining wrap platforms & their providers)  Your Business       Agree that wraps offers business and client benefits Understand the client types or life-stages you wish to serve Articulate the client value proposition and processes you will deliver Have a robust investment proposition you wish to deliver Create criteria a wrap has to satisfy for your model - based on FSA Fact-sheet Include qualities in a business supplier that protect/enhance your reputation • e.g financial strength, disaster recovery, added value services etc      Create a short-list before RFI Conduct interviews/site visits Select wrap Decide how often you will renew your due diligence exercise Document it!!  AXA Wealth – Elevate Wrap Platform – Our story:  Due Diligence – short leaflet and comprehensive document  “Why We Chose Elevate” – AXA Business Consultancy  Delivering enhanced planning capability What is Elevate- Just a bit of technology… Primary Use as a phone and listen to music Secondary Camera Calculator Email Internet Diary What else - Market leading Bespoking - Ergonomic design - Upload/ download your own music/ videos - Future updates - Create your own playlists So What? Entertainment system Portable office Digital photo album Phone and MP3 Elevate is an enabler, it allows you to as much or as little as you want GPS Place business Tools Reports Platform and Business consultancy - Product guarantees - Recognised brand - Financial stability - Commitment to market - Future development Craig Monahan- Platform Consultant Presentation - Download your own apps - Own logo and colour scheme - Improve client experience - Set your own pricing structure and remuneration levels - Increase business efficiency - Create your own model portfolios - Choose your own best buy lists - Help clients be more engaged with investments - Tool to place business Elevate proposition               Strategic importance to the AXA group Built on sound principles Sensible use of award-winning technology Technically innovative tax wrappers Straight Through processing On-Line Anti-Money Laundering Negative Affirmation Supports financial/lifestyle planning Access to the right investments Underpins a Flexible Remuneration Strategy No barriers to entry or exit RDR friendly Clear upgrade path Specialists to support transition Risk report • Consistent with offline version and so can be used in conjunction • Provides an audit trail and tangible output • Stored in the client document library for future reference • Current risk rating stored on client account •Can store your own Enhancing your investment proposition OBSR  Old Broad Street Research (OBSR) model portfolios  Created and managed by OBSR  Directly aligned to TP Risk Assessment outputs  Reviewed quarterly, alerted when changed  Enables outsourcing of fund selection Adviser  Adviser model portfolios  Created and managed at adviser or firm level  May be applied across a number of different clients  Efficient management of multiple portfolios with similar needs  Client–specific model portfolios  Created and managed at firm or adviser level  Applied to one client account only  Can be applied across different wrappers in the same account Client Enhancing your planning capability   Ongoing Management of risk is critical Model Portfolios help with Core Investment Strategies  Models can increase service to more clients  Technology & Wraps can deliver the efficiencies required – STP   Dual Charging Option Verbatim funds are listed on the Elevate Platform Questions? ... diligence exercise Document it!!  AXA Wealth – Elevate Wrap Platform – Our story:  Due Diligence – short leaflet and comprehensive document  “Why We Chose Elevate” – AXA Business Consultancy  Delivering... Financial stability - Commitment to market - Future development Craig Monahan- Platform Consultant Presentation - Download your own apps - Own logo and colour scheme - Improve client experience -... Tool to place business Elevate proposition               Strategic importance to the AXA group Built on sound principles Sensible use of award-winning technology Technically innovative