Latest / Financial Planner Life Podcast / Setting up a Directly Authorised Financial Planning Firm From Scratch!

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Setting up a Directly Authorised Financial Planning Firm From Scratch! · Financial Planner Life Podcast

0:00
SPEAKER_00: And today's guest on the Financial Planar Lives Podcast is Alexandra Vind.
0:03
SPEAKER_00: Alexandra is the director of Chapter House Wealth Management.
0:07
SPEAKER_00: She's a chartered financial planner.
0:08
SPEAKER_00: She has 18 years experience actually working as a power planner.
0:12
SPEAKER_00: So we talk about her career, her moving around company to company, and what she learnt along the way.
0:17
SPEAKER_00: And why she can't work for anybody else now.
0:20
SPEAKER_00: She'd rather work for herself, of which she's done.
0:23
SPEAKER_00: She set up an outsourced power planning company and gone down the route of becoming a directly authorised financial planning firm.
0:31
SPEAKER_00: She set that firm up with her husband.
0:34
SPEAKER_00: And she shares deeply around the journey of going directly authorized and why she did that instead of going down the network route.
0:43
SPEAKER_00: We talk about the costs involved, the time it takes, expectations, and the realities, of course, of going directly authorized.
0:51
SPEAKER_00: Alexandra is a firm believer that even though she's in an operations role, that she should get herself out there on social media and she does social media marketing, branding.
1:02
SPEAKER_00: So we talk about the impact that that has on her business.
1:05
SPEAKER_00: Absolutely fantastic conversation with Alexandra today.
1:09
SPEAKER_00: I hope you enjoy this episode.
1:18
SPEAKER_00: Alexandra, thank you so much for joining me today on the Financial Planner Life podcast.
1:23
SPEAKER_00: How are you?
1:24
SPEAKER_04: Good, thanks.
1:25
SPEAKER_04: How are you, Sam?
1:26
SPEAKER_00: I'm really well, yeah, very good.
1:27
SPEAKER_00: Well, a bit sketchy, bit scatty.
1:29
SPEAKER_00: I'm a bit all over the place.
1:30
SPEAKER_00: Took me a little while to set up, didn't it?
1:32
SPEAKER_03: Yes.
1:34
SPEAKER_00: But there's been a lot going on in the world of the Financial Planner Life and Sam Oak.
1:37
SPEAKER_00: So I'm going to give myself some, you know, credit here.
1:40
SPEAKER_00: You know, I'm allowed to be a bit, a bit sketchy sometimes and a little bit disorganized.
1:44
SPEAKER_00: But that's what it's like when you run your own business, right, Alexandra?
1:46
SPEAKER_00: You run your own business.
1:47
SPEAKER_04: I do run my, well, I now run two businesses.
1:50
SPEAKER_04: So yeah.
1:52
SPEAKER_04: It can be sketchy at times.
1:54
SPEAKER_04: It can feel like trudging through Tricoil, but we get there.
1:59
SPEAKER_00: Absolutely.
1:59
SPEAKER_00: Well, I understand what it's like to run two businesses.
2:02
SPEAKER_00: I do exactly the same.
2:03
SPEAKER_00: Um, and then within those businesses now, I've got multiple sh multiple little kind of sub-sectors.
2:09
SPEAKER_00: Um, interesting then.
2:11
SPEAKER_00: So you run two businesses.
2:12
SPEAKER_00: Let's just jump straight into this, okay?
2:13
SPEAKER_00: You've got an extensive career of working within the financial planning profession.
2:17
SPEAKER_00: That's why we've got you on today.
2:18
SPEAKER_00: You've worked in operational functions, power planning functions, right?
2:22
SPEAKER_00: And we're going to go back over your career and we're going to talk about how you got into it, what you learned along the way, and hopefully inspire some of the listeners that might well be sitting in admin roles or power planning roles, and people that might be thinking, I want to run a business.
2:33
SPEAKER_00: You've done it all at the moment, right?
2:36
SPEAKER_00: Whilst achieving charters.
2:38
SPEAKER_00: And oh my God, you're a woman.
2:40
SPEAKER_04: Yes.
2:40
SPEAKER_04: In financial services.
2:42
SPEAKER_00: In financial services, you know, icing on the cake.
2:44
SPEAKER_00: And you've got time to get out there on social media.
2:46
SPEAKER_00: That's how I found you.
2:47
SPEAKER_00: You know, using Instagram and whatnot to get yourself out there and get yourself noticed.
2:51
SPEAKER_00: So, you know, what I would consider really very much a new age type financial advisor.
2:57
SPEAKER_00: So it's really refreshing to see, and that's why we want to bring you on here and get you talking about it.
3:00
SPEAKER_00: But Alexandra, let's just fire just straight in a little bit.
3:03
SPEAKER_00: You've got two companies then.
3:04
SPEAKER_00: Tell us about the first.
3:05
SPEAKER_00: So you've got a financial planning company that you are now an owner of, directly authorized.
3:10
SPEAKER_00: Yeah.
3:11
SPEAKER_00: So you've decided to set your own firm up, and you've also got a consultancy.
3:14
SPEAKER_00: Just tell us about the consultancy first.
3:16
SPEAKER_00: What's that then?
3:17
SPEAKER_04: So the consultancy, I do power planning, compliance, admin for other companies, other advisors.
3:23
SPEAKER_04: At the moment, there are three clients, and that became about quite naturally.
3:29
SPEAKER_04: I'd finished my last role and I knew I wanted to set at this directly authorised company, but you need an income.
3:36
SPEAKER_04: So I went and found a financial advisor that needed help, and it started from there.
3:42
SPEAKER_04: And I've been helping him for three years, and then other advisors have joined as we've gone along.
3:47
SPEAKER_04: So that's just a nice, what I call my safe bit of income whilst I was doing the directly authorised company and getting that started.
3:56
SPEAKER_00: So a bit of diversification then, you know, using the knowledge, the skills, the experience that you have to fund and support you whilst you've got your business off the ground.
4:07
SPEAKER_00: Obviously, both self-employed as well, right?
4:10
SPEAKER_00: Both self-employed.
4:11
SPEAKER_00: You've got nobody in the background paying you a salary.
4:13
SPEAKER_04: No, I wish.
4:16
SPEAKER_00: Well, you won't one day.
4:17
SPEAKER_00: One day you'll be like, thank God for that.
4:20
SPEAKER_00: But there is a fear attached to it.
4:21
SPEAKER_00: It's like, well, am I going to get paid?
4:22
SPEAKER_00: Am I going to stop, you know, is income going to stop coming in?
4:24
SPEAKER_00: Are these clients going to use somebody else's services?
4:27
SPEAKER_00: And, you know, we do worry, and I know what that's like because I run a business myself.
4:30
SPEAKER_00: And um, you know, this month's been terrible actually.
4:33
SPEAKER_00: Our billings on the recruitment side, due to really the impact of the markets and the uncertainty, what happened with trust and a ridiculous announcements.
4:40
SPEAKER_00: Um, and it had an impact on us as a recruitment business because we were aligned to financial services.
4:43
SPEAKER_00: So financial services companies knuckled up a little bit, therefore, we felt the brunt of it, you know.
4:48
SPEAKER_00: And this time last year, we've had half the income as we had last year.
4:54
SPEAKER_00: You know, so it does cause concerns, and you've got to ride those waves, I think, when you run your own business.
4:59
SPEAKER_00: And that's why we've got you on today is to talk about the journey that you've been on, the waves that you've been on.
5:02
SPEAKER_00: You're obviously a king surfer as well.
5:04
SPEAKER_00: We've already talked about that, so we've drop a bit of surfing in on that.
5:07
SPEAKER_00: Um, but Alexandra, let's just start from the beginning, okay?
5:09
SPEAKER_00: So you've got this consultancy now, you've now got your own financial planning firm that's directly authorised.
5:13
SPEAKER_00: I'm going to get into that.
5:13
SPEAKER_00: But tell us about how you got into the profession.
5:16
SPEAKER_04: Okay, so I was at University, Nottingham, Trent, so I was studying business management, and we it was a sandwich course, so I needed to find a year in industry, and I started to work for a partner practice at St.
5:29
SPEAKER_04: James's Place.
5:30
SPEAKER_04: So I did that for my sandwich year, and I was a practice manager, so that you know gave me so much experience of running a practice all the administration, but it also got me into the power planning side.
5:40
SPEAKER_04: So after that year, I continued to work there part-time, and even after I graduated, I stayed there, and then I kind of got the feeling that I wanted there must be more to financial advice.
5:56
SPEAKER_04: So I then moved to an independent firm where I stayed for quite a number of years, and I really enjoyed that the exposure that it gave me to you know, I'd had the kind of place model, and then learning about the independent model and how that is quite different, and the different compliance aspects of that, and I've stayed in the independent kind of sector ever since, and yeah, have jumped not shit, but I've moved from company to company.
6:27
SPEAKER_04: Um I'm not gonna say a control freak, but I do like controls, and I'm I'm somebody that likes ideas and I will work through the process and think oh, let's why don't we try it that way?
6:39
SPEAKER_04: And you know, some managers were really receptive to that, and others were like, No, this is how we do it.
6:44
SPEAKER_04: So it's when I felt I'd outgrown that company and some it happened quicker than others, that you then go, right, I need a new challenge.
6:51
SPEAKER_04: I'm always looking to challenge myself, and how do I make myself better at the role I'm doing?
6:57
SPEAKER_04: And that's why, yeah, we've just I've just moved and it's one of those.
7:01
SPEAKER_00: That's great.
7:02
SPEAKER_00: That's great.
7:02
SPEAKER_00: I love that.
7:03
SPEAKER_00: And I love that.
7:04
SPEAKER_00: And we're gonna pick that apart.
7:05
SPEAKER_00: Um, one of the first things I want to talk to you about really is it was July 2005 that you uh you were at St.
7:10
SPEAKER_00: James's Place when you joined there and you were power planning.
7:13
SPEAKER_00: We call it power planning, right?
7:14
SPEAKER_00: Report writing probably at St.
7:15
SPEAKER_00: James's Place.
7:16
SPEAKER_00: Um practice manager as well.
7:18
SPEAKER_00: Okay.
7:19
SPEAKER_00: So you went in there, sandwich year, you got yourself stuck in and you you started fortiest career within within within the financial planning sector.
7:25
SPEAKER_00: At that stage, did you have any thoughts around becoming a financial advisor?
7:28
SPEAKER_00: Were you always more interested in the compliance side of it, the back office functions?
7:32
SPEAKER_00: Because even then, 2005, power planning wasn't really an established role.
7:36
SPEAKER_00: And and the term power planner wasn't really been knocking about, was it?
7:41
SPEAKER_04: It was a very new role.
7:43
SPEAKER_04: I've never wanted to be an advisor.
7:45
SPEAKER_04: I don't think I'm a natural salesperson.
7:48
SPEAKER_04: And back then, before RDR in 2012, I felt it was quite a salesy role.
7:53
SPEAKER_04: I'm much happier in the background, building relationships.
7:57
SPEAKER_04: You know, I love to read the FCA compliance documents that come out, I get stuck in with my highlighter.
8:03
SPEAKER_04: And that that's the side I love.
8:05
SPEAKER_04: That's you know, how how a business I think a good business runs is having somebody like that in the background.
8:10
SPEAKER_04: So do I ever see myself as a financial advisor?
8:13
SPEAKER_04: And have I ever thought that no?
8:16
SPEAKER_00: Okay, so for you then, power planning, operational compliance, that ticks your boxes.
8:23
SPEAKER_00: That's that that's what gets you going.
8:25
SPEAKER_02: Yeah.
8:26
SPEAKER_00: Absolutely, cool, brilliant.
8:27
SPEAKER_00: Well, great.
8:27
SPEAKER_00: And that's what I love, and that's what I love about the way the financial planning uh profession is evolved.
8:31
SPEAKER_00: This idea that you have to be this extrovert sales relationship focused type individual to be a success or to have a career within financial planning is completely false.
8:42
SPEAKER_00: Even to the point where you've actually progressed throughout different power planning roles at different firms, picked up knowledge along the way, and thought, you know what, I've worked out that perhaps I'm not somebody that needs to be employed within a financial planning firm, doing the role that I enjoy, which is power planning and compliance, which historically employed was really all there ever was.
9:00
SPEAKER_00: And then all of a sudden, the evolution of this out outsourcing for the financial planning profession because of a lack of admins, power planners, and firms looking to keep costs down, for instance.
9:11
SPEAKER_00: You are somebody, although focused on the uh back office functions, has an entrepreneurial mind and is now set up two businesses.
9:22
SPEAKER_00: And that's what I love.
9:22
SPEAKER_00: There's lots of power planners, there's lots of people in compliance administration that have entrepreneurial minds as operational type people.
9:29
SPEAKER_00: And the profession now, there is a way to set your own business up and actually make money out of it.
9:35
SPEAKER_00: And you look at someone like Kathy Harrison from the Verve group, look at that.
9:38
SPEAKER_00: Great big business, isn't it?
9:40
SPEAKER_00: Doing fantastic things around compliance and administration, power planning, supporting functions, and also looking quite cool while they're doing it.
9:48
unknown: Yeah.
9:49
SPEAKER_04: Well, I use um the verb group for compliance, and Kathy is a mentor of mine.
9:54
SPEAKER_04: So I think, you know, she is fantastic, and from where she started to what she has now, and she's always thinking differently, which is what I love.
10:03
SPEAKER_04: It's colourful, it's kind of out there, it's different, and it's what financial services needs.
10:09
SPEAKER_04: I've been in financial services now nearly 18 years, and yeah, it's a breath of fresh air, and it's kind of what I want to do as well, be a bit different, you know, make financial services kind of just seem relevant and interesting.
10:23
SPEAKER_00: Yeah, I know, I absolutely agree.
10:25
SPEAKER_00: And you know, the power of mentorship, having somebody that's sort of trodden a path and is doing things differently, I think that's hugely beneficial to anybody.
10:33
SPEAKER_00: And um, you know, having that belief in your having that courage within yourself to put the pride down and to ask for some help or to ask for some guidance who's somebody who's trodden the path before, right?
10:42
SPEAKER_00: So mentoring is fantastic.
10:44
SPEAKER_00: I don't think a lot of power planners and a lot of people in the back office functions often get mentored enough.
10:49
SPEAKER_00: You know, we're starting to see some mentor groups sort of being established, communities such as next gen planners, etc.
10:56
SPEAKER_00: Yeah, planner, power planner powwows, and all that kind of stuff.
10:58
SPEAKER_00: Okay, there are there are things out there.
11:01
SPEAKER_00: How did you end up connecting with someone like Kathy as a mentor?
11:04
SPEAKER_00: You know, that's fantastic.
11:05
SPEAKER_00: You know, what advice would you give to someone listening now, thinking about I want a mentor like Kathy?
11:09
SPEAKER_00: How did you go about getting that?
11:10
SPEAKER_04: Well, she just put out a post and said, if anybody would like to be mentored by me, please apply.
11:16
SPEAKER_04: So I applied and I was one of the lucky ones.
11:20
SPEAKER_04: But I would just say reach out if you find somebody inspirational, if you know, you should just reach out to them and just ask.
11:27
SPEAKER_04: And I think a lot of people that I've come across will always say yes, they will always give you time, even if it's just an hour that they can commit, they will.
11:36
SPEAKER_04: And it's the best way to learn because we we don't know it all.
11:40
SPEAKER_04: We we might think we do at times, but to just ask them, kind of be vulnerable and go, you know, I'm really worried about the income stream or how I go about doing that.
11:49
SPEAKER_04: What challenges have you faced and how did you overcome it?
11:51
SPEAKER_04: And it's yeah, it's been one of the best things I've done for my career.
11:55
SPEAKER_04: I've always I've got quite an inquisitive mind, so I'm always asking, and I'm not afraid to kind of go, okay, you've achieved it, and how do I get how do I achieve what you have?
12:06
SPEAKER_04: Yeah, so yeah, just just reach out.
12:08
SPEAKER_00: Just reach out, absolutely.
12:09
SPEAKER_00: You know, people reach out to me, and you're absolutely right.
12:12
SPEAKER_00: It's very difficult to say no, you know, and if we can help, we will.
12:17
SPEAKER_00: That's what we do as humans.
12:18
SPEAKER_00: We have this and they want and need to be able to help others.
12:21
SPEAKER_00: It's very few people that turn around and say no.
12:24
SPEAKER_00: Um, if they're incredibly that self-ins that self-absorbed, and you know, that's just the people that they actually are that they don't want to help others.
12:29
SPEAKER_00: However, most people want to help others, right?
12:32
SPEAKER_00: You know, so do you mentor people yourself?
12:35
SPEAKER_00: Do you do you sort of give back in that way?
12:36
SPEAKER_00: Because I always think as well, like we ask for help from others, and a big part of our learning comes from actually helping others.
12:43
SPEAKER_04: Yes, so I'm involved with the PFS in Birmingham, and I am the charter champion.
12:48
SPEAKER_04: So I put on CPD events for the members, which I like to do is I I feel that's a way of giving back.
12:56
SPEAKER_04: And then people will just come and talk to you after and ask questions.
13:00
SPEAKER_04: I also was at a power planning conference and I was on a panel, and again, the just the conversations, and you know, you exchange numbers with people and they might not contact for you for a year, and then they'll you know send you a message.
13:12
SPEAKER_04: Um, I'm just about to go directly authorised.
13:14
SPEAKER_04: What do you think?
13:15
SPEAKER_04: And you know, I've just helped one of my clients for about eight months.
13:19
SPEAKER_04: I've been helping him go through directly authorised, and he's rang and had questions.
13:23
SPEAKER_04: And I love that I have the knowledge to help him, and you know, because some of to some people it might seem like a stupid question, but I don't think any question is ever stupid.
13:32
SPEAKER_04: So yeah, I like to feel like I'm helping, and and I know we're gonna talk about the social media, but that's why I set up the social media as well, is to help.
13:42
SPEAKER_00: So you yeah, so in you you've got this want and need to be able to help people out of situations where they can't see the light, they're not sure about where to go, and you're there to help people and guide them, whether or not that is financial advice, whether or not that is um help around power planning, administration, operational task, whether that's the help and support of the journey that you've gone on to start your own directly authorized firm, which you know isn't an easy thing to do, is it?
14:08
SPEAKER_00: It's it's very, very tricky.
14:09
SPEAKER_00: And you know what?
14:10
SPEAKER_00: It's quite interesting.
14:11
SPEAKER_00: There isn't a great deal of content out there in the public that talks about going directly authorized.
14:17
SPEAKER_00: You know, there isn't.
14:18
SPEAKER_00: There's a lot of there's a lot of chat, you know, I put a bit of content on my website around like going down the appointed representative route, you know, going down a network and getting support in that way.
14:27
SPEAKER_00: But you know, we'd talk about that in a minute, about the difference between a network and a DA, why you ended up choosing DA and what you learnt along the way.
14:34
SPEAKER_00: And maybe we can share some of that knowledge today to anybody that's thinking, I want to go DA.
14:38
SPEAKER_00: Um, what is it, what does it mean?
14:39
SPEAKER_00: But what I also love the fact is you are operational and you have gone down the route of set up your own business.
14:44
SPEAKER_00: And one of the things that I'm learning is that there are a lot of firms that are going DA at the moment, starting with an operational person, whether that's a senior power planner, somebody in an operational role, partnering with a financial advisor.
14:58
SPEAKER_00: And I genuinely believe that is the best start to starting a financial advice business is finding that partnership.
15:04
SPEAKER_00: Having two financial advisors is like having two, you know, two salespeople, isn't it?
15:10
SPEAKER_00: Yes, yeah, you know, and the balance isn't quite there because neither really is focused on wanting to do the admin and probably not their strong point anyway, right?
15:18
SPEAKER_00: The strong point is relationship building if that's what they want to do.
15:20
SPEAKER_00: They want to be out seeing people making money.
15:22
SPEAKER_00: Yeah, simple as that, and growing a sales force, perhaps.
15:25
SPEAKER_00: What they don't want to be doing is you know, up to their eyeballs in paperwork because that stresses them out because it stops them from going out and seeing clients.
15:32
SPEAKER_00: And I get that.
15:33
SPEAKER_00: I'm somebody that can't, you know, I ha I would have to have an operations manager with me because I I wouldn't be able to do it.
15:40
SPEAKER_00: It takes me two days to send an email sometimes.
15:42
SPEAKER_00: It's ridiculous.
15:43
SPEAKER_00: Right.
15:43
SPEAKER_00: Well, let's talk about that then.
15:45
SPEAKER_00: So you spent how many years did you spend power planning?
15:48
SPEAKER_04: It's now about 18.
15:50
SPEAKER_00: 18 years of power planning.
15:52
SPEAKER_00: Yeah.
15:53
SPEAKER_00: So you went through the journey.
15:54
SPEAKER_00: Now, you know, I've just looking over your LinkedIn, anyone, anyone can see this, public, right?
15:58
SPEAKER_00: But you've moved around a lot of different firms.
16:01
SPEAKER_00: Lots of people sit in roles for too long, right?
16:05
SPEAKER_00: In their shit, not enjoying it, not enjoying the company, not being valued, perhaps they're not getting the career progression that they're looking for, but they don't go through fear of perhaps, oh, you know, I don't want to look like I've got a jumpy CV.
16:20
SPEAKER_00: You know, it's gonna stop me from getting a job in the future.
16:23
SPEAKER_00: What would you say to those people right now, right?
16:25
SPEAKER_00: You've moved around a bit.
16:26
SPEAKER_00: So, first off, what were the major reasons why you moved around?
16:30
SPEAKER_00: What were you know, what things came up that made you think I've had enough, I'm gonna move on?
16:36
SPEAKER_04: I think it was that career progression.
16:38
SPEAKER_04: You I think you get you can go so far in a company and then go, they're not, you know, meeting my needs, I can't progress anymore.
16:47
SPEAKER_04: So it might be around training, it might be that you would like to progress in your role, you know, you want to go from paraplanner to senior paraplanner.
16:55
SPEAKER_04: And it did used to scare me.
16:58
SPEAKER_04: I did use, you know, I sat in a job for probably a year too long because I was scared of moving around.
17:05
SPEAKER_04: I just had my second child.
17:07
SPEAKER_04: So it's like, you know, will people see the value in me?
17:11
SPEAKER_04: But actually, there are so many jobs out there, there are so many fantastic companies, and you know, I wouldn't have the experience I have today.
17:18
SPEAKER_04: I wouldn't be doing what I am doing today if I hadn't had that experience, if I hadn't changed jobs.
17:23
SPEAKER_04: So just go for it.
17:25
SPEAKER_04: It's you've got to focus on you and what you want to do.
17:28
SPEAKER_04: You know, we've all heard the saying that an employer will get rid of you in an instant and not think about it.
17:33
SPEAKER_04: So why do we sit in a role worrying about what they all think?
17:37
SPEAKER_04: You know, and you might the next role might be the role that lands you on your feet.
17:40
SPEAKER_04: I've seen a lot of people that are now very comfortable.
17:43
SPEAKER_04: The company helps them progress, they're happy, it's ticking all their boxes.
17:49
SPEAKER_04: But if they hadn't moved, if they hadn't taken that step, they'd still be stuck.
17:53
SPEAKER_04: So you know, remember it's your life and you know, go and find the role that is best for you and just see all is experienced.
18:01
SPEAKER_04: You know, I've seen really bad practices and really good practices, and they've helped me form the business that I want to run today.
18:08
SPEAKER_04: You know, I can start to do something and go, oh no, this is like quite close to that, you know, the bad experience I had.
18:15
SPEAKER_04: And I think it will also make me a better employer when I take somebody on.
18:20
SPEAKER_04: I've you know been at the end of some not very nice behaviour in these firms, but it will make I will never act that way, I will become better for it.
18:31
SPEAKER_04: And I hope whoever I take on, they say the same, hopefully.
18:36
SPEAKER_04: Um, that they enjoy working for me.
18:38
SPEAKER_04: But yeah, just see it all as experience, you know.
18:41
SPEAKER_04: We have to we have to go through the tough times to get to the better times.
18:45
SPEAKER_04: So no, I agree.
18:47
SPEAKER_04: Just go for it.
18:47
SPEAKER_00: Perfectly summed up.
18:48
SPEAKER_00: We put out this career accelerator podcast series at Christmas talking about um, you know, if you are looking for a new job and you're thinking about moving on, you need to start with your reason why.
18:57
SPEAKER_00: You know, sit down and work out your reason why.
19:00
SPEAKER_00: Are there is there anything in your reason why?
19:02
SPEAKER_00: Make an inventory of the things you dislike, make an inventory of the things you like, right?
19:06
SPEAKER_00: Look at the things you dislike and approach your employer.
19:10
unknown: Yeah.
19:10
SPEAKER_00: Be brave and approach your employer.
19:13
SPEAKER_00: I would like a salary increase because I've looked at a salary guide from Recruit UK and it says that I should be on 35k basic and you're paying me 25.
19:22
SPEAKER_00: Um, it's affecting my life.
19:24
SPEAKER_00: I feel that I could go and get this elsewhere, and I've got the experience.
19:27
SPEAKER_00: Are you willing to put my salary up in line with the um the average across the UK?
19:32
SPEAKER_00: And you know, that's a conversation to be having.
19:34
SPEAKER_00: It's a brave conversation.
19:35
SPEAKER_00: And your employer will want to hear your feedback as why you are unhappy within your job.
19:41
SPEAKER_00: Because if they are worth their weight in gold, they will look to make a change if that change is justifiable, right?
19:47
SPEAKER_02: Yeah.
19:48
SPEAKER_00: And if they're not, then you know straight away that perhaps this company and the values and the culture isn't supporting me.
19:56
SPEAKER_00: It could be why, you know, I want to, I want to progress, I want to become a financial advisor, or as you just rightfully said, you know, you want to become a senior power planner.
20:03
SPEAKER_00: Some firms don't even have a career development plan in place to take somebody from administrator up to senior level power planner.
20:10
SPEAKER_00: Some firms don't even understand the difference between a report writer, power planner, senior power planner.
20:16
SPEAKER_00: You know, they they just don't have a clue and they don't outline what that career progression looks like, what the salary increases should look like.
20:22
SPEAKER_00: And it's if you're that power planner or you're that administrator sitting in that role in that back office type function, you can also be treated like a mushroom sometimes, you know, feed them shit and keep them in the dark, you know, as long as they're doing their job, you know, and and we'll we'll do that.
20:36
SPEAKER_00: And that's not every employer, by the way.
20:38
SPEAKER_00: But you've seen it, brilliant right.
20:41
SPEAKER_04: Yeah, I've seen it.
20:42
SPEAKER_04: And there was one um I had that kind of conversation with an employer, and I said, What I was doing diploma, I was heavily pregnant, I was like, What will you put my salary up to?
20:52
SPEAKER_04: I think I should be on this once I hit diploma.
20:55
SPEAKER_04: And I think as a joke, he went, Okay, yeah, when you get to diploma, I'll put you on that salary.
21:00
SPEAKER_04: So I worked so hard, it was like I've got a point to prove here.
21:04
SPEAKER_04: And I was the first person in that company to hit diploma, and I walked in and was like, Is my salary going to increase then?
21:09
SPEAKER_04: And he was just like, Okay, and you know, just have that conversation then might say there's a this milestone that you have to meet, so then go out and hit that milestone.
21:19
SPEAKER_04: And then if you want to leave and go, right, I now know my value and but you know, challenge yourself and know your value.
21:26
SPEAKER_04: Yeah, if you don't feel you're being valued, go and find someone that will.
21:31
SPEAKER_04: Because there are lots, lots of fantastic companies.
21:33
SPEAKER_00: What would what advice would you?
21:35
SPEAKER_00: So if someone was sitting there and they they didn't feel valued, right?
21:37
SPEAKER_00: They're looking around, maybe the you know, there isn't a learning and development program, there isn't an incentive to get your qualifications.
21:43
SPEAKER_00: That's a brilliant one, by the way.
21:44
SPEAKER_00: You know, everybody should have that.
21:46
SPEAKER_00: Within our business in recruitment, we have levels of you get to.
21:49
SPEAKER_00: Each level you get to, you get an increase in benefits.
21:52
SPEAKER_00: You get to the point where we get unlimited holidays, you can get a Tesla.
21:55
SPEAKER_00: There's loads of different benefits that you can get as you progress through the career framework.
21:59
SPEAKER_00: But the Career Framework outlines competencies that you've got to evidence to show that you are living up to what's expected of you within the business.
22:08
SPEAKER_00: We don't give things to people because we like them.
22:10
SPEAKER_00: We give things to people who work hard and can evidence that they're giving back to our business.
22:15
SPEAKER_00: Without that carrot, how is somebody going to be motivated?
22:20
SPEAKER_00: And the reluctance of that guy who you were employed by went, oh, okay, we'll do it.
22:25
SPEAKER_00: It's like, have you not learned something here, Mr.
22:27
SPEAKER_00: Employer?
22:28
SPEAKER_00: That if you incentivize somebody, they'll work harder, they'll get the qualifications, and they'll add value to your business.
22:36
SPEAKER_00: And I think so many people just sitting there in these roles and not getting motivated by the career development.
22:41
SPEAKER_00: And it's a massive gap in that area, which is the back office function side of it.
22:45
SPEAKER_00: And it's the clear route also to becoming an advisor.
22:48
SPEAKER_00: You know?
22:49
SPEAKER_00: Maximize everything that that individual can do.
22:52
SPEAKER_00: Keep them motivated.
22:53
SPEAKER_00: And you will keep your staff, you won't lose them to somebody else.
22:56
SPEAKER_00: They won't go elsewhere and try and find their intrinsic values, their needs met in another employer.
23:02
SPEAKER_00: If you can clearly define a roadmap which will get them from exactly where they want to go over a period of time.
23:09
SPEAKER_00: And, you know, people just leave it to like, oh, we'll talk about a one-to-one, or we'll talk about that next year.
23:14
SPEAKER_00: We'll see how you get on.
23:15
SPEAKER_00: And all you're doing is demotivating somebody because we all need to know where we're going, don't we?
23:19
SPEAKER_00: You all need a bit of a career roadmap.
23:21
SPEAKER_04: Yeah, and it's just having that conversation.
23:23
SPEAKER_04: You know, a lot of employers, it's kind of, I have to have a one-to-one with you, so I've ticked that box.
23:27
SPEAKER_03: Yeah.
23:28
SPEAKER_04: Written down some objectives, you know, they will never be looked at again.
23:32
SPEAKER_04: But for me, be proactive, you know, and if you're not brave enough yet to go and speak to your employer, find a mentor, reach out to somebody, and just discuss that because it can just help frame your thoughts.
23:44
SPEAKER_04: You know, your employer, you might go to them and go, Well, that's great.
23:47
SPEAKER_04: I've never had the space to think about this, and you've just come to me.
23:51
SPEAKER_04: That sounds brilliant.
23:52
SPEAKER_04: We'll put that in place.
23:54
SPEAKER_04: You don't know until you've spoken to them.
23:56
SPEAKER_04: But you know, if they turn around and say, Can you just go back to doing your admin?
24:01
SPEAKER_04: You know that you've got to move on.
24:03
SPEAKER_04: And sometimes I think it's better to know, even if you think, okay, now I need to go and find another job, than just sitting there being unhappy and wondering what's going to happen to your life.
24:12
SPEAKER_00: Yeah.
24:13
SPEAKER_00: I agree.
24:14
SPEAKER_00: Reaching out to others.
24:15
SPEAKER_00: And there are things like the Power Planner Club, um, isn't there?
24:18
SPEAKER_00: Sean Davies Cole, isn't it?
24:20
SPEAKER_00: Um, you know, you've got yourself, you know, people might want to reach out to you.
24:22
SPEAKER_00: Hey, why didn't you set up your own little community of power planners and in and some support there for them?
24:27
SPEAKER_00: Hey, it's a great recruitment tool, that is.
24:30
SPEAKER_04: I might do.
24:31
SPEAKER_04: That'll be another kind of area that I can explore.
24:34
SPEAKER_00: The Financial Planner Life Power Planner Club.
24:37
SPEAKER_00: There we go.
24:38
SPEAKER_00: PowerPlanner Life.
24:39
SPEAKER_00: Oh my God, let's set a business is what I mean.
24:41
SPEAKER_00: Serial entrepreneur here.
24:42
SPEAKER_00: You're an entrepreneur now.
24:43
SPEAKER_00: Let's talk about that then.
24:44
SPEAKER_00: Let's talk about this business that you've just set up, right?
24:46
SPEAKER_00: So you've gone through the power planning journey, you're like nearly 18 years within the profession, okay?
24:50
SPEAKER_00: Now you've made the brave step and fair play to you.
24:53
SPEAKER_00: You first of all, you outsourced, set up an outsourced power planning company to get yourself some income.
24:57
SPEAKER_00: Well done.
24:58
SPEAKER_00: And now you've set up a financial advice business, right?
25:00
SPEAKER_00: Okay.
25:01
SPEAKER_00: And you haven't gone under a network, you haven't got some support from anybody else, you've set up a financial advice business on a directly authorised basis, okay?
25:09
SPEAKER_00: First off, just give a brief outline of what it means to be directly authorised and why you chose it.
25:16
SPEAKER_04: Okay, so in very simple terms, it means your only boss really is the FCA.
25:21
SPEAKER_04: I am a senior manager, I am responsible for everything that goes on within that company.
25:28
SPEAKER_04: Why we decided to go directly authorized is I was fed up with people telling me how to do it their way.
25:35
SPEAKER_04: And under a network, you still have the compliance teams that you have to satisfy.
25:39
SPEAKER_04: You have their templates you have to use, just their way of doing it.
25:44
SPEAKER_04: And I didn't want to do it anybody else's way.
25:47
SPEAKER_04: Me and my husband were both chartered financial planners, and we thought, you know what, let's give it a go.
25:53
SPEAKER_04: If it fails, there are jobs out there.
25:55
SPEAKER_04: But if other people can do it, let's do it.
25:58
SPEAKER_04: Is one of the scariest things I think I've done.
26:01
SPEAKER_04: We went from two incomes to no income.
26:06
SPEAKER_04: And luckily, my power planning uh business was bringing in some money, but that's a very scary step to take when it's you suddenly paying yourself and nobody else.
26:17
SPEAKER_04: And to know what I would recommend it to anybody thinking about it.
26:21
SPEAKER_04: You know, if you're wondering network or directly authorized, do directly authorized.
26:27
SPEAKER_04: If you hate it, you can go under a network, they will always welcome you.
26:30
SPEAKER_04: But if you don't try, you will never know.
26:32
SPEAKER_04: And I think there are frustrations under a network that you can get with being employed.
26:37
SPEAKER_04: So yeah, no, I like that.
26:39
SPEAKER_00: That's a great starting point.
26:40
SPEAKER_00: So when you actually, when you and your husband got together and you made that decision, right?
26:43
SPEAKER_00: Do you know what?
26:43
SPEAKER_00: Let's set up our own business.
26:44
SPEAKER_00: We're both chartered, we uh both want to set your own business up.
26:48
SPEAKER_00: Did you write a simple little business plan, first of all, just to work out how are we going to pay the bills?
26:54
SPEAKER_00: Where's our clients going to come from?
26:56
SPEAKER_00: What's our what's our business plan?
26:57
SPEAKER_00: What's our strategy?
26:58
SPEAKER_00: Can you just share with us like what what you did?
27:00
SPEAKER_00: Was it on the back of a fag box, you know, back of a beer mat?
27:02
SPEAKER_00: Was it, you know, tell us about it.
27:03
SPEAKER_00: How you how did you go about what's our plan?
27:07
SPEAKER_04: So it kind of started.
27:08
SPEAKER_04: We both knew we were unhappy being employed.
27:10
SPEAKER_04: My husband had been promised a directorship under the company he'd been working for, and that had kind of disappeared.
27:16
SPEAKER_04: So it was kind of a big crossroads in our life.
27:20
SPEAKER_04: It's like, what are we going to do?
27:22
SPEAKER_04: And so we we would sit and talk, and one option was setting up directly authorized, one was moving to the south coast and being employed down there.
27:32
SPEAKER_04: And we kind of knew we had to plan for both eventualities, so we started saving so that we had at least two years' worth of income behind us or expenditure behind us before we even took the plunge to leave because that seemed sensible.
27:49
SPEAKER_04: And you know, it was talking to our children at the time of you know, if we do this, you know, we're not going to have the income.
27:56
SPEAKER_04: It might be that we cut back on things.
28:00
SPEAKER_04: It was just preparing ourselves mentally for you know that eventuality.
28:04
SPEAKER_04: The the moving to the south coast, kind of the door was firmly shut on that.
28:08
SPEAKER_04: So we did, we did a business plan, it was on a computer, so it was like our thoughts coming in, it was just notes, and then we kind of put it all together.
28:16
SPEAKER_04: And in that, we had income projections, and in our first year we projected that we would make a loss.
28:21
SPEAKER_04: So that was what we submitted to the FCA.
28:23
SPEAKER_04: Don't know whether it was madness or the right thing to do, but we said, you know, we do think we're gonna make a loss, we have no clients, we're we're very green.
28:31
SPEAKER_04: This is this is us, and yeah, but we just made sure we had the financial backing of you know the savings behind us, and we just yeah, it was that kind of you know, if we don't do it now, we might regret it.
28:45
SPEAKER_04: And it was one of my husband's clients that said, Joe, just do it, take the step, take the leap, and I'm very glad that we we did.
28:55
SPEAKER_04: But I'm not gonna lie, it is very scary, and you kind of but I I don't want to sell it as in, yeah, yeah, I was just so confident it was gonna work.
29:03
SPEAKER_04: There were sleepless nights, you know, you haven't got that income coming in, but it's just being prepared, it's you know, being realistic with business plans.
29:11
SPEAKER_04: I've seen business plans where you know apparently they're gonna have 20 AUM assets under management and they're gonna have all this income coming in.
29:18
SPEAKER_04: It rarely happens like that.
29:19
SPEAKER_04: The income trickles in.
29:21
SPEAKER_04: So you do need that buffer.
29:23
SPEAKER_04: So it is being as prepared as you can be and taking the time because it it will just work out better once you you know get your authorization.
29:32
SPEAKER_00: Okay, cool.
29:33
SPEAKER_00: So your background operations, you did a student as a financial advisor though, as well, right?
29:36
SPEAKER_00: You did do a little never done that?
29:38
SPEAKER_03: No.
29:38
SPEAKER_00: So it was your it was you and your husband coming together, um, family business.
29:43
SPEAKER_00: Your husband's mainly a he's a financial advisor advising clients.
29:47
SPEAKER_00: He's more the client relationship side, you're more the operations side.
29:50
SPEAKER_00: So coming together as a family unit, husband, wife has its struggles sometimes with some businesses.
29:58
SPEAKER_00: My wife and me work together, nearly killed our relationship.
30:01
SPEAKER_00: But that's another story, but we can talk about that.
30:04
SPEAKER_00: So you came together, one's more client focused, one's more on the operational side, okay.
30:09
SPEAKER_00: As I said earlier, I've seen that happening more and more, and that's what I would do if I was setting up a financial advice business on my own going directly authorised.
30:17
SPEAKER_00: Now, did you you you put some money aside two years, right?
30:21
SPEAKER_00: How long's this business been going for now?
30:23
SPEAKER_04: It's gonna be three in May.
30:25
SPEAKER_00: Three in May.
30:26
SPEAKER_00: You submitted a loss, yeah, to the to the FCA on your application.
30:32
SPEAKER_00: Yeah, did you project that correctly?
30:34
SPEAKER_04: No.
30:35
SPEAKER_00: Okay, so what happened?
30:37
SPEAKER_04: So we after eight months we got our authorization and it kind of was perfect timing.
30:42
SPEAKER_04: Yeah, it took it was through COVID, so it was the worst possible time.
30:48
SPEAKER_04: And you know, it was May, COVID, I think lockdown, the lockdown had started to ease, but we just found clients that Chris had worked with in the past just started to reach out.
31:00
SPEAKER_01: Right.
31:00
SPEAKER_04: And it kind of just grew organically, and we you know, we made a nice profit in the first year and we've continued to make a profit.
31:10
SPEAKER_04: We've never made a loss, which is that's great.
31:13
SPEAKER_04: Yeah, from you know, we we're not pessimists, but we have to be realistic realistic about it, you know.
31:20
SPEAKER_04: It could have taken us six months to get our first client, but yeah, it just it's just grown and referrals and we use vouched for, which is a brilliant tool.
31:31
SPEAKER_04: And yeah, I I don't know what the magic is behind it, but it's just worked.
31:36
SPEAKER_04: But we spent a lot of time on branding, you know, we wanted it to be a family business, we wanted to, you know, it to be very relaxed.
31:43
SPEAKER_04: I think if you want people to talk about money, it has to be relaxed.
31:46
SPEAKER_04: You can't do, I'm not all for the suit and tie and the yeah, sit down and you know, do a fact find.
31:53
SPEAKER_04: It's just not me, and I don't think it's our clients.
31:55
SPEAKER_00: And yeah, it's so that's that's really positive to hear.
32:00
SPEAKER_00: So you had this, you know, you you did the sensible thing of putting some money aside.
32:03
SPEAKER_00: You're a financial advisor, emergency fund, right?
32:06
SPEAKER_00: So you twelve for you, it's 24 months.
32:08
SPEAKER_00: Like that is conservative.
32:09
SPEAKER_00: You were like, well, I'm gonna put 24 months aside.
32:11
SPEAKER_00: So if you didn't make a penny, you can still pay the bills.
32:15
SPEAKER_02: Yeah.
32:15
SPEAKER_00: Yeah.
32:16
SPEAKER_00: And did you put so that's that's a lot of money, right?
32:18
SPEAKER_00: That is a lot of money.
32:19
SPEAKER_00: I don't know what your financial situation is, how much your mortgage is or whatever.
32:22
SPEAKER_00: Um, but that's a lot of money to put aside.
32:25
SPEAKER_00: So, how long were you saving up for that money?
32:27
SPEAKER_00: Did you take it off of the mortgage?
32:29
SPEAKER_00: What how did you sort of create that that pool of money beforehand?
32:33
SPEAKER_04: Was it so we we are big savers?
32:36
SPEAKER_04: It's what we do, being financial advisors.
32:39
SPEAKER_04: But we had, because my husband thought he was buying into the business he was working with, we've taken a small amount off our mortgage, which was just sat waiting.
32:47
SPEAKER_04: So our savings covered the two years' worth of income, and that money that we're taken off the mortgage was then used for our capital adequacy.
32:55
SPEAKER_04: So you have to have£20,000 in your business bank account to become authorised.
33:00
SPEAKER_01: Right.
33:00
SPEAKER_04: So that's your capital adequacy.
33:02
SPEAKER_04: So that's another thing I'd say.
33:04
SPEAKER_04: If you are thinking about directly authorised, you have to think about where you're going to get that£20,000 from because it has to be there.
33:11
SPEAKER_04: You can't then take it out.
33:12
SPEAKER_04: That's what the FCA liked to see.
33:15
SPEAKER_00: If you've got that 20 grand, right, does it have to come from, you know, when you get like a mortgage and you can't have like that 20 grand as a separate loan, for example, is there any evidence?
33:25
SPEAKER_00: Do you have to provide evidence of where that 20,000 come from, or do they not care?
33:30
SPEAKER_04: No, no.
33:31
SPEAKER_04: We just had to, they asked to see um that it was in the company bank account.
33:37
SPEAKER_00: Tell us why they want that.
33:40
SPEAKER_04: So it's to ensure if you have a complaint that you can pay any excess that you have on your PI insurance.
33:48
SPEAKER_04: So yeah, that the clients are protected, it's all about looking after clients.
33:52
SPEAKER_04: So that chunk of money has to be there.
33:54
SPEAKER_04: And the bigger you get, the bigger that part of money becomes.
33:58
SPEAKER_04: So we we no longer have just 20, not because we've reached that size, but just I like having that buffer that if anything goes wrong, I could pay out to a client and still have the 20,000 that they expect.
34:10
SPEAKER_03: Okay.
34:10
SPEAKER_00: One of the biggest risks that come from setting up your own business and um attracting clients, right?
34:17
SPEAKER_00: Is things like restricted covenants.
34:19
SPEAKER_00: Okay.
34:20
SPEAKER_00: So if you're an employed person and you have been employed for some time, but you've built relationships, then you're probably under contract.
34:26
SPEAKER_00: But you can't solicit or approach the clients of the firm that you were working for.
34:32
SPEAKER_00: Usually a restricted covenant is can't be extended past six months, right?
34:38
SPEAKER_00: But you can be sued by your employer if deemed to be soliciting clients.
34:44
SPEAKER_00: I know this very well because a guy in my office got sued by a recruitment company for a lot of money and you had to pay it, right?
34:49
SPEAKER_00: So it can be enforced and it can happen.
34:52
SPEAKER_00: There was a big one, wasn't there, with Towery a few years back, wasn't there?
34:55
SPEAKER_00: So not getting tanks on your lawn as such, right?
35:00
SPEAKER_00: What did you do?
35:01
SPEAKER_00: Because you mentioned now that some clients approached.
35:04
SPEAKER_02: Yeah.
35:04
SPEAKER_00: Right.
35:05
SPEAKER_00: And that's fine, isn't it?
35:06
SPEAKER_00: People can approach you, it doesn't matter.
35:09
SPEAKER_00: So, what was your strategy around already knowing that you've got solid relationships with some clients that you would love to work with and continue working with?
35:15
SPEAKER_00: They probably want to continue to work with you.
35:17
SPEAKER_00: Was there negotiations had between your husband and his employer?
35:21
SPEAKER_00: Is there any advice you can give us around that?
35:24
SPEAKER_04: No, but the advice I would give is stick to your restricted covenant.
35:27
SPEAKER_04: It's not worth, you know, being sued.
35:32
SPEAKER_04: There are enough clients out there, and that sounds scary because when you're starting without clients, you know, you you want those people to follow you.
35:42
SPEAKER_04: But we set up a website, you know, you can Google our names, and that website came up.
35:47
SPEAKER_04: And our first client was somebody that's mentored us through this whole process, and he was like, I'm going to be your first client because once you've got that first client, it's just easier.
35:57
SPEAKER_04: So find somebody that will become your first client, it might be a family or a friend, and actually, friends have kind of come forward and gone, Oh, can you help me with my pensions?
36:06
SPEAKER_04: And like I say, the clients and the the clients that my husband used to work with had relationships between themselves.
36:13
SPEAKER_04: So once one had found him, it kind of just they would talk to each other and you'd get another phone call, and you know, here we are.
36:22
SPEAKER_04: And you know, clients don't always follow, you know, they don't always find you, but you build other relationships.
36:32
SPEAKER_04: Like I say, vouched for has been brilliant for us, you know, attracting new clients, and we've just we've got two new clients that we're seeing next week which have come from vouched for.
36:42
SPEAKER_04: So I would say don't be aggressive with it, it will it will happen.
36:47
SPEAKER_04: And I'm I'm all about timing, so I was very like worried about the restricted covenant, and I was like to my husband, do not do anything, and he, you know, he wouldn't have done anyway.
36:57
SPEAKER_04: But the way it worked with the FCA authorization process, and the day we got authorized, that was the six months ended.
37:05
SPEAKER_04: So when clients were ringing, I was like, Do you know what you can speak to them?
37:08
SPEAKER_04: That is fine because we're we're out of it.
37:10
SPEAKER_04: Thank you, FCA, for taking so long.
37:13
SPEAKER_03: Yeah, sometimes life works out.
37:15
SPEAKER_04: Yeah, and as frustrating as the eight-month wait was, it the timing was actually perfect.
37:23
SPEAKER_00: How quickly, well, first off, let's talk about marketing at that stage, at the beginning stage, right?
37:31
SPEAKER_00: Even during the period of restricted covenants, because you want to be seen, you know, by the people you can't even approach, for example.
37:38
SPEAKER_00: Um, but you also want to build up new client relationships.
37:40
SPEAKER_00: And um, marketing has never been a fantastic uh adapt, you know, um add-on to financial planning firms.
37:47
SPEAKER_00: In fact, you know, it's massively archaic.
37:49
SPEAKER_00: Uh so what did you guys do to um implement good marketing strategies that would get you in front of clients, introducers, and help you gain sort of brand awareness within your specialism and area?
38:02
SPEAKER_04: So me and my husband both like to talk.
38:05
SPEAKER_04: So we're all we're yeah, we're quite happy to approach anybody and talk about you know what we were doing.
38:13
SPEAKER_04: So I approached a solicitor in Lichfield where we live, and he said that he would help and support us.
38:20
SPEAKER_04: We've got our mentor that was the same.
38:22
SPEAKER_04: For us, it was word of mouth and people just being aware of who we were.
38:27
SPEAKER_04: We we've never wanted to grow huge at the uh in the early stages.
38:32
SPEAKER_04: So it wasn't about doing, you know, this huge marketing campaign, but it was making sure that the website and the brand were consistent.
38:38
SPEAKER_04: We would give PACs out to local mortgage companies.
38:42
SPEAKER_04: You know, we have friends that you know their parents are looking for financial advice, so it's just it's making your presence known, but without being in everybody's face and unbiased, that was a brilliant way to start because people in your local area, your past leads from them vouched forwards that had you know taken off with clients leaving feedback, brilliant source of clients as well.
39:07
SPEAKER_04: So I can't say we did anything special.
39:10
SPEAKER_04: Branding and websites, I think, are two of the most important things because if somebody goes, Oh, there's this new financial advice company opened in Lichfield and you don't have a website, it's lost.
39:21
SPEAKER_04: They will just find they will just go to the other website and click on their link.
39:26
SPEAKER_00: Yeah.
39:26
SPEAKER_00: Do you get a lot of clients coming through your website?
39:30
SPEAKER_04: A lot of them look at it.
39:31
SPEAKER_04: So when we meet with them, they will say, Oh, I really like your website, I've been on it, I've seen that you've got these awards.
39:40
SPEAKER_04: So I think it's yeah, it's visited, but I don't think we get direct client leads from the website.
39:45
SPEAKER_04: But we've had some struggles with it appearing on Google.
39:49
SPEAKER_04: So you really had to like go in the search box, but marketing have now sorted that out.
39:54
SPEAKER_04: So if you we do come up top, so hopefully those leads will start to come through directly from the website.
40:01
SPEAKER_00: I think there are some things we can do from a marketing perspective, and there are some things we can't do.
40:06
SPEAKER_00: You know, I've had to let go that need for control and use an outsourced marketing company.
40:10
SPEAKER_00: I've had to hire a marketing manager in.
40:12
SPEAKER_00: Um, but that's allowed me to work on the areas that I'm feel that I can add value, and that's getting on podcasts and talking to people.
40:20
SPEAKER_00: I'm a bit like you, you know, I like to talk to people.
40:22
SPEAKER_00: That's given me the courage and the confidence then to get on social media and be authentically myself and share my opinion.
40:28
SPEAKER_00: And that's done really, really well.
40:29
SPEAKER_00: I've won some fantastic clients over the years just by getting out, a talking to people, sharing those conversations that I have and putting my opinion on it, but also just sharing my opinion in general around careers, development, females in financial supplies, diversity.
40:42
SPEAKER_00: And that's really helped me stand out.
40:44
SPEAKER_00: And I've had a lot of leads come in directly to me, you know, with some amazing companies I'm working with at the moment, that, you know, they haven't come through my website or anything.
40:53
SPEAKER_00: They've come through me, the brand, Sam Oaks.
40:56
SPEAKER_00: And that's that's allowed me to do it.
40:58
SPEAKER_00: And I think sometimes we it's a double-edged sword.
41:01
SPEAKER_00: It's like, look, it takes time and energy to do to create content when it's you, right?
41:06
SPEAKER_00: Um, and then there's the marketing side, SEO, website development.
41:10
SPEAKER_00: You're gonna have to pay for that.
41:11
SPEAKER_00: Yeah.
41:12
SPEAKER_00: Did you take that money?
41:14
SPEAKER_00: Did you was that always part of your business plan, including marketing in your business plan?
41:18
SPEAKER_00: Yeah.
41:19
SPEAKER_04: Yeah.
41:20
SPEAKER_04: So the design of the website, we knew.
41:22
SPEAKER_04: So a lot, I don't know, you've seen it, a lot of advisors use just the paper client agreements.
41:27
SPEAKER_04: They will use the standard templates.
41:29
SPEAKER_04: We didn't want to do that.
41:30
SPEAKER_04: We wanted it all branded, we wanted it, you know, so the clients could, I suppose, interact with it, could get it, you know, they could read the client agreement and go, I know what you're on about.
41:39
SPEAKER_04: So we spent quite a bit of money doing that and getting that right, which we've had brilliant feedback from the clients.
41:49
SPEAKER_04: Yeah, it's you know, there's a lot of money required to set up directly authorized.
41:55
SPEAKER_04: I'm not going to shy away from that.
41:56
SPEAKER_04: But getting it right and having a plan means that it just becomes easier as you go along.
42:03
SPEAKER_04: If I hadn't done the branding at the outset and I was trying to do it a year in now, I think you're then trying to fit a business into a brand instead of this is my brand, this is what we're about, this is our why, and we it flows from there.
42:16
SPEAKER_00: But it kind of like you wanted that brand, you wanted something for yourself.
42:20
SPEAKER_00: You mentioned there you like the control element of it, you wanted something that was yours, right?
42:26
SPEAKER_00: Um, so you were going to invest that money from the get-go.
42:29
SPEAKER_00: And you're absolutely right, you need to invest that money from the get-go because otherwise you're kind of you're you're building as you go and it's tiring them.
42:36
SPEAKER_00: I've done that, it's tiring.
42:38
SPEAKER_00: Whereas somebody might be sitting in a firm and I'm gonna go self-employed, but I don't really want, I'm, I'm, I'm, I just want to focus on sales at the moment.
42:45
SPEAKER_00: I don't want to, I don't want to build a website.
42:47
SPEAKER_00: So they go to a network and they get the you know the branding and they can bolt onto somebody else's and they can have a go at being self-employed for a couple of years and see where it takes them, right?
42:54
SPEAKER_00: And that's cool.
42:54
SPEAKER_00: That's cool.
42:55
SPEAKER_00: But for you, it was like, I want control, I want, I want this business, I want it to be mine, and I want to go directly authorised.
43:00
SPEAKER_00: You you you mentioned there that it's expensive going directly authorized, okay?
43:03
SPEAKER_00: So that's that's cool.
43:04
SPEAKER_00: Let's talk about that if you don't mind, because let's let's put a let's put a number on it.
43:09
SPEAKER_00: You know, how expensive is it to go directly authorized, set your own businesses up, pay your own your marketing and all that kind of stuff.
43:15
SPEAKER_00: What what were you paying out in your say your first your first year?
43:20
SPEAKER_04: I think just to set up it was about 30 to 35,000 pounds.
43:25
SPEAKER_04: Right.
43:25
SPEAKER_04: And we were quite small.
43:27
SPEAKER_04: So that was our 20,000 pound capital adequacy.
43:30
SPEAKER_03: Yeah.
43:31
SPEAKER_04: Then because we said we were going to make a loss, we had to put an extra 5,000 in the business.
43:35
SPEAKER_01: Right.
43:36
SPEAKER_04: And then you have your application fee for the FCA, which is now two and a half thousand pounds.
43:42
SPEAKER_01: Right.
43:43
SPEAKER_04: Then you've got your marketing, which is probably about£5,000 if you're building a website.
43:48
SPEAKER_04: One thing I'd say is go to a compliance company, they have deals, they know what they're doing with these websites, so it works out cheaper, and you can get a nice website with your branding, and you're not paying.
44:00
SPEAKER_04: Over the odds, and you know it's compliance.
44:01
SPEAKER_00: Well, with the compliance company.
44:03
SPEAKER_04: Yes, yeah.
44:04
SPEAKER_04: So the company we use.
44:08
SPEAKER_04: So Simply Beers, we use at the start, and they have a company called TOMD.
44:13
SPEAKER_04: You can go to them directly, you don't have to be a member of Simply Beers, and they they were brilliant, they got our brand.
44:20
SPEAKER_04: I know it's one thing I don't have to worry about.
44:22
SPEAKER_04: They check it, it's compliant, it's brilliant, and it didn't cost the earth.
44:28
SPEAKER_00: Is there a lot to think about when it comes to creating marketing to make sure that it ticks the boxes for the FCA?
44:34
SPEAKER_04: There is.
44:43
SPEAKER_04: So because there is a lot of compliance with setting up to know that somebody has done that and I can literally just go with a checklist and go, yeah, that's there, that's there, that's there, and sign it off.
44:55
SPEAKER_04: It was worth the money that well, that I continue to pay.
45:00
SPEAKER_00: Yeah, fair play.
45:01
SPEAKER_00: Do you pay the um the the website company like a monthly fee as well?
45:05
SPEAKER_04: Yes.
45:05
SPEAKER_04: So that's about£45 a month now.
45:07
SPEAKER_00: Okay, and they maintain it, make sure it's up to date and everything like that, yeah?
45:10
SPEAKER_04: Yeah, they put newsletters on for us and yeah, it works really well.
45:14
SPEAKER_00: That's good.
45:15
SPEAKER_00: Yeah, that's cool.
45:16
SPEAKER_00: That's great.
45:16
SPEAKER_00: T O M D.
45:18
SPEAKER_00: Yes.
45:18
SPEAKER_00: There you go, that's my next brand brand partnership.
45:20
SPEAKER_00: I'm gonna have to get some website building companies who can build websites for financial advisors the right way, partner with them and get them out.
45:26
SPEAKER_00: Excellent, great stuff.
45:27
SPEAKER_00: Okay, cool.
45:28
SPEAKER_00: So there is an expense to setting up this directly authorised um business, right?
45:32
SPEAKER_00: But there's also a process to go through.
45:33
SPEAKER_00: It's a bit unfortunate that it was locked down when you went through it and it took you eight months, right?
45:37
SPEAKER_00: Um but at the same time, blessing in disguise because it gave you the the the the enough time for the restricted covenants to to clear.
45:43
SPEAKER_00: Let's just talk about the, you know, if someone's sitting here going, like, well, what do I have to do to go directly authorised?
45:48
SPEAKER_00: Can you sort of I know this is probably gonna be well, you'll probably love this, but like, can you simplify each stage?
45:55
SPEAKER_00: Let's say, take us on a journey.
45:57
SPEAKER_00: So if someone's listening now and goes, right, this is what I'm gonna expect from going directly authorized.
46:02
SPEAKER_00: Give us a give us a rundown.
46:04
SPEAKER_04: So the first thing that you need to do is set up your business plan because eventually you'll have to submit that to the FCA, but that just gets your thoughts in order.
46:13
SPEAKER_04: So, are you going to be limited a limited company, your branding, your projections, why you want to set up the company?
46:21
SPEAKER_04: And then you can go straight to the FCA directly.
46:24
SPEAKER_04: I would recommend using a compliance company because they can guide you through it.
46:29
SPEAKER_04: And then you set about, you meet with that compliance company and they will help you build your application.
46:34
SPEAKER_04: So there are lots of forms that you have to fill in, MIFID forms, controller forms, you have to prove that your business is incorporated, that you've got your ID, that your business plan is up to scratch.
46:46
SPEAKER_04: And you submit that to the FCA, you pay your application fee, and that then sits in a queue for us for a very long time.
46:54
SPEAKER_04: We we submitted it in September, and what you then get the next stage is you get a case handler, so they will check your application.
47:04
SPEAKER_04: Now the process has changed since I went through it.
47:07
SPEAKER_04: So there is now an interview stage where you have three FCA people on a call with you, and they quiz you on your business plan on why you're setting it up, on why you want the permissions that you do.
47:21
SPEAKER_04: You have to recite the conduct rules.
47:23
SPEAKER_04: So if anybody's going through it, learn your conduct rules, and they then make a decision based on the interview and based on what you've submitted.
47:32
SPEAKER_04: And that's again where you need a compliance company because they will sit in that interview with you and prep you for that.
47:39
SPEAKER_04: Then you might get um back and forth with the FCA.
47:42
SPEAKER_04: I will warn you they always, if you set if they send you an email and you reply the next day, it takes them two weeks before they pick that email up.
47:50
SPEAKER_04: So be prepared, everything happens in two week stages, and then you either get an email to say we're happy to approve you, and you then have to provide evidence that you've got your PI insurance, and then you choose the date that you want to go authorise.
48:08
SPEAKER_04: So it might be the first of the month, it might be the next day, and then you will appear.
48:11
SPEAKER_04: The FCA will put you on the directory in the register, and you are good to go.
48:18
SPEAKER_00: You're good to go.
48:19
SPEAKER_00: Good.
48:19
SPEAKER_00: Yeah.
48:20
SPEAKER_00: So that is the process.
48:21
SPEAKER_00: It sounds very simple, but I can imagine there's a lot of back and forth, a lot of form checking, filling the form out the correct way.
48:26
SPEAKER_00: And if you don't do something the right way, it then puts another two-week delay on it.
48:30
SPEAKER_00: Typical types of things.
48:31
SPEAKER_00: Do you have to provide a lot of evidence?
48:34
SPEAKER_04: Yes.
48:35
SPEAKER_04: So about who you are, you know, if you make a comment in your business plan and it is not crystal clear, they come back and are like, please expand on this.
48:44
SPEAKER_04: Right.
48:45
SPEAKER_04: The one thing that they asked me to do, and I had one top tip I'd give you is get to know your case handler.
48:52
SPEAKER_04: Now, to a lot of people, the FCA is really scary.
48:55
SPEAKER_04: And I was like, Do you know what?
48:56
SPEAKER_04: I'm going to build a relationship with her.
48:57
SPEAKER_04: I want her to think of me as a person.
49:01
SPEAKER_04: So I got to know Camilla and she rang me up one day and she said, Alex, you've never been a financial advisor.
49:07
SPEAKER_04: So I need to know why you're good enough for me to authorise you.
49:10
SPEAKER_04: And she then apologized.
49:12
SPEAKER_04: And I was like, that's fine, you know.
49:14
SPEAKER_04: So I put together this, you know, why I'm good enough to run a financial advice company.
49:20
SPEAKER_04: And and luckily it was it was good enough.
49:23
SPEAKER_04: But yeah, there is lots of paperwork.
49:25
SPEAKER_04: That's why I say if you can get a compliance company, you know, applicity do it, um, Simply Bears, bank all do it, it it just removes a lot of the headache.
49:37
SPEAKER_04: And if some if the FCA come to you with something, there's somebody you can pick up the phone to and they they deal with the FCA every day, they can be like, oh, this is what they mean, just provide this form.
49:45
SPEAKER_00: So like Priscilla, etc., they're not dealing, they're not like a broker that sits between you and the FCA, you physically, as the person who's becoming authorized, has to have to talk to the case handler like Camilla, for example, right?
49:55
SPEAKER_00: Um, does that compliance um consultancy firm um do they kind of give you a um a template to follow and clear instructions?
50:04
SPEAKER_00: So when you do build that business plan, that you aren't wasting your time, because I could imagine if I said, right, I'm going to build a business plan, my business plan that I build might not be how the FCA interpret a business plan.
50:16
SPEAKER_00: So I can imagine a lot of people waste a lot of time at that point, right?
50:20
SPEAKER_00: So sensible to go and see a consultant like your Simply Business, etc., because they do give you a template, they do give you the advice about how you have to present this case.
50:29
SPEAKER_04: Yes, and they will check it for you as well.
50:32
SPEAKER_00: Yeah.
50:33
SPEAKER_00: Oh, do they?
50:34
SPEAKER_04: Yeah, so they will they will read it for you.
50:37
SPEAKER_04: They even um so you have to do it through a connect system, is how you submit your application to the FCA and they will upload that for you and put it all in the right places.
50:48
SPEAKER_04: So it's these things that you think, oh, I can just upload it, but they they do it in the correct order, the way the FCA like it.
50:54
SPEAKER_04: So it's yeah, it's it just takes a massive headache away if you can have it.
51:00
SPEAKER_00: Okay, right.
51:00
SPEAKER_00: You you have demystified the the DA side of it, right?
51:04
SPEAKER_00: Because every you know, a network will turn around and say, oh, you don't want to go DA, it's an absolute ball ache, it's gonna take you ages, but you've done it, you've gone through it, and yes, it took a little bit of time and you went through it a period where it was really, really difficult, but you've gone through it, so it's achievable.
51:15
SPEAKER_00: So if someone's sitting there wanting to go directly authorised, look, as long as you've got the money, as long as you've got the right support in place, you've thought about your business plan in the right way, all the things you should do anyway before you even go directly authorised, because A, you're a risk to yourself, B, you're gonna be a risk, risk to others, right?
51:29
SPEAKER_00: So you've gone through all that all that process, right?
51:32
SPEAKER_00: So you demystified it.
51:33
SPEAKER_00: Now there's another myth that comes up that oh myth, myth, you know, is there a lot of work after being directly authorised between you and the FCA that a network will actually take away from you, right?
51:48
SPEAKER_00: Is there extra work and you know what does that look like?
51:51
SPEAKER_00: How much extra work is it?
51:53
SPEAKER_00: And this kind of almost then there's the argument, the reason why you should be aligning yourself with a power planner operations or compliance internally, anyway, isn't it?
52:02
SPEAKER_04: So I have to do my um half-yearly reporting to the FCA.
52:07
SPEAKER_04: So after my year end in March, by May I have to have submitted a report, and the same at the end of the year by November I have to submit a report.
52:15
SPEAKER_04: Now, there are fantastic um companies out there, so I use a company called My Uh Reg Data, and it's a bit of software.
52:23
SPEAKER_04: I key in every month, the end of every month, all my figures, and I meet with a fantastic man called Jeremy on Zoom, and within 10 minutes, he has done my Gabriel report.
52:33
SPEAKER_04: Now I know people that slave over those for weeks.
52:36
SPEAKER_04: I'd get really stressed.
52:37
SPEAKER_04: But I found a solution that means, okay, I've got my time every month doing it, but I think that's important anyway.
52:42
SPEAKER_04: It's a business, I'm checking in with my business, and then within 10 minutes, Jeremy's got it uploaded to Connect, submitted.
52:49
SPEAKER_04: He sends me all the forms and gone, that's it done.
52:52
SPEAKER_00: So you pay for that service, yeah?
52:54
SPEAKER_04: Yes, but it's I think it's about 30, 35 pounds a month.
52:58
SPEAKER_00: Okay.
52:58
SPEAKER_04: Yeah.
52:59
SPEAKER_00: So let's look at this then, okay?
53:01
SPEAKER_00: There are these additions.
53:02
SPEAKER_00: Okay, can you just explain to me what Gabriel reports actually are for those that are sitting, because a lot of people who are employed thinking about setting their own business, they've probably never done a Gabriel report in their life, right?
53:11
SPEAKER_00: So what is it?
53:12
SPEAKER_04: Okay, so it's reporting to the FCA to tell them what has what your profit has been for that period, the clients that you've taken on, the clients that you've lost.
53:22
SPEAKER_04: You have to report about any conduct rule breaches on there, you have to say if you've done any insurance and your annualised premium for that.
53:30
SPEAKER_04: So it's just they're just looking for data, and you have to do it every six months.
53:34
SPEAKER_04: So then I'm assuming the network would do that for you on like the network scale.
53:40
SPEAKER_04: Um, and there are the FCA also have done COVID questionnaires, which are still ongoing, so that's a bit of extra work.
53:48
SPEAKER_04: But you know, it takes me half an hour, and for me, I'd rather do that and deal directly with the FCA and find technology that makes it easier for me to do that than have a compliance, a network with their compliance checking my files and then saying and having to spend two hours getting file to the way they want it.
54:10
SPEAKER_04: So there's there's time savings for me, and I'd prefer to work with the FCA than a network.
54:16
SPEAKER_00: I like I like it.
54:17
SPEAKER_00: And that's the thing, you know, you're all you're doing, if you you you made the right choice, didn't you?
54:21
SPEAKER_00: You know, if you went down the network route, for example, you're just gonna be bashing your head against a brick wall by somebody who might be there for two years, he's got less experience than you, and it would do your head in.
54:29
SPEAKER_00: Um, I can imagine you hear a lot when people join networks, is that you know they're trying to put business through, and then and the compliance team are saying, we're not touching that, or we're not doing that, or you know, there's a lot more red tape associated to the risk they're taking on in respect to the type of business that you can do.
54:44
SPEAKER_00: Whereas if you're directly authorized, you you you you pick and choose the work that you do, don't you?
54:48
SPEAKER_00: You know, based on your your knowledge, your research, um, your you know, but it but then the risk is on you.
54:56
SPEAKER_04: Yeah, but yeah, the risk is fully on me.
54:58
SPEAKER_04: And that's why, you know, I've always been very clear from the start.
55:02
SPEAKER_04: If I don't think a client relationship is going to work, we don't take that client on.
55:06
SPEAKER_04: And we're very not rude to the client, we we offer alternatives because I never want to work with a difficult client.
55:12
SPEAKER_04: I never want to feel like I have to take on a client to hit somebody's target, be it in networks, and I, you know, I'm comfortable with the business that I do.
55:22
SPEAKER_04: And actually, it was somebody in the FCA, I was quizzing him about compliance companies and networks, and he said, Alex, you're chartered.
55:30
SPEAKER_04: Why would you have anybody less than charter check your files?
55:34
SPEAKER_04: And I was like, actually, that's a fair point.
55:36
SPEAKER_04: I've been getting stressed at this person that's you know, they're they're obviously doing a good job, but they might not even have diploma, and they've just not got the advice, and you're you know, getting stressed about it.
55:47
SPEAKER_04: But actually, I pride myself on knowing and knowing my value and knowing that I know what I'm doing.
55:53
SPEAKER_04: Yeah, you know, so actually, again, it's just knowing your value and going, yeah, actually I'm chartered and I'm gonna do it my way.
56:02
SPEAKER_00: Alexandra, there's you in the business, there's your husband in the business.
56:04
SPEAKER_00: Is there anybody else?
56:06
SPEAKER_00: No, right.
56:07
SPEAKER_00: Interesting, right?
56:08
SPEAKER_00: So that's usually our two business, our business start.
56:10
SPEAKER_00: Two people come together, right?
56:12
SPEAKER_00: And you've got the operations, you've got the sales advice side, right?
56:15
SPEAKER_00: So you've got two people come together to do that.
56:17
SPEAKER_00: How much of your time do you spend a week on the operational side, compliance side, file checking side, power planning side of the business, you personally?
56:26
SPEAKER_04: I would say about 50% of the time.
56:29
SPEAKER_04: If I averaged it out, it takes what would that be, 15, 16 hours?
56:35
SPEAKER_00: Okay.
56:35
SPEAKER_00: So someone was going directly authorised on their own, for example, right?
56:39
SPEAKER_00: And they've only really ever been a directly, they've only ever really been a financial advisor, but are considering taking on the operational side as well as their advice side.
56:48
SPEAKER_00: We're looking at 20 hours of somebody who's experienced, right, doing it.
56:53
SPEAKER_00: Yeah, so that's a big, that's a big chunk of time, isn't it?
56:56
SPEAKER_00: So you can understand why somebody on their own might go down a network route if they're an advisor, but why going down the directly authorised route partnering with an operational manager is a really good shout to do.
57:08
SPEAKER_00: There's something in that, there's something in connecting really good power planner, operational people with advisors to set up businesses.
57:16
SPEAKER_00: I think there's a there's definitely a niche there that isn't out there.
57:20
SPEAKER_03: Yeah.
57:20
SPEAKER_00: Um, you know, there must be so many entrepreneurial people like you that just don't have that connection, if you like, to the right advisor at the right time.
57:29
SPEAKER_00: So if we bring that person who's entrepreneurial on the operation side, who at that point says, I want to run a business, and you've got the financial advisor on the other side doing the same, you bring them together in like some sort of networking community, a wonderful thing could happen, couldn't it?
57:41
SPEAKER_04: Yes.
57:42
SPEAKER_04: And that's part of the consultancy business.
57:44
SPEAKER_04: I've just helped another advisor get through to directly authorised, and he he will pick up the phone and you know, I'm I'm doing all that operation stuff for him, and he's found it easier having me there.
57:58
SPEAKER_04: So, you know, it is like my husband said, he couldn't do it.
58:01
SPEAKER_04: It would be too much, it would be overwhelming to have to do the advice and the compliance side, and you can see why that compliance then starts to fall away, and the FCA have concerns.
58:12
SPEAKER_04: So, yeah, that kind of meeting of operations and an advisor is a really good idea.
58:18
SPEAKER_00: You've got to be you've you've got to be what I'm learning from this directly authorized, it's not as easy as it sounds, right?
58:23
SPEAKER_00: Um, it's not as easy as it sounds, and it's not for everybody, which is why there's networks there, right?
58:28
SPEAKER_00: I get it.
58:29
SPEAKER_00: Um, but at the same time, it's rewarding if you've got the right people coming together in the beginning to set it up.
58:35
SPEAKER_00: There is a cost involved, not only to cover your income for that period where you might not make any money, but also capital adequacy, uh, marketing, setting up your website, you know, and it is a costly first year.
58:48
SPEAKER_00: You predicted that you might not make any money, you even submitted that, but you did, right?
58:52
SPEAKER_00: And that's a great thing.
58:53
SPEAKER_00: You even have to pay five grand more for the privilege, right?
58:57
SPEAKER_00: Um, but you did.
58:58
SPEAKER_00: So even with that conservative, um, I wouldn't even say pessimistic, I would say conservative look at the future, you know, realistic.
59:06
SPEAKER_00: You you ex you you more than exceeded it, right?
59:09
SPEAKER_00: The fear that you're never gonna get a client, yeah.
59:12
SPEAKER_00: You put your marketing out there, put your name out there, speak to the right people.
59:15
SPEAKER_00: They come to you, right?
59:16
SPEAKER_00: Do good things, people come to you, but you've got to put yourself out there.
59:19
SPEAKER_00: What I love about you is not only are you operational behind the scenes doing all that stuff, but you get out there as well.
59:27
SPEAKER_00: You like talking to people.
59:28
SPEAKER_00: So you're kind of you are a salesperson in your own right, because not only do you, you're not just writing blog articles and putting them out there, you're actually getting on Instagram, for instance, and you're talking about the financial advice that you guys provide, what you do as a business to get yourself to see.
59:44
SPEAKER_00: Let's talk a little bit about that because not everybody in an operational position has had the confidence to do that, to support the business from a sales and branding and marketing perspective.
59:53
SPEAKER_00: Talk to me about that.
59:54
SPEAKER_00: Why do you do it and what's the benefit?
59:57
SPEAKER_04: So for me, I have never been, well, what I thought, the most confident person.
1:00:02
SPEAKER_04: And I was speaking to Kathy from the Verve group, and I said, I've always wanted to do an Instagram, but I just don't feel confident enough.
1:00:09
SPEAKER_04: And she said, just do it.
1:00:10
SPEAKER_04: Doesn't matter if nobody watches, just do it.
1:00:13
SPEAKER_04: And I'm for me, the development over I think it's coming up to a year now that I've been doing it, you know, my ability to speak, my ability to present, I think have improved.
1:00:24
SPEAKER_04: Um, because I'd put myself out there with the PFS as well, I'm the charter champion, and you have to stand up at the conferences in front of all those people and present.
1:00:34
SPEAKER_04: So I wanted to become better.
1:00:36
SPEAKER_04: And for me as well, it was that giving back the amount of questions I'm asked on a weekly basis, just simple questions like, how do I find out my state pension age?
1:00:44
SPEAKER_04: How do I find out about how much I'm gonna get the state pension?
1:00:47
SPEAKER_04: I thought, you know, people are thinking they have to go to advisors, but that information is out there, and let me just help point them in the right direction.
1:00:55
SPEAKER_04: So yeah, I started doing the videos.
1:00:57
SPEAKER_04: I absolutely love doing the videos.
1:00:58
SPEAKER_04: I if I'm kind of overwhelmed with work, I think, you know what, I'm just gonna go and record a video and post it.
1:01:03
SPEAKER_04: And it just gives me a nice buzz to know that there are people out there that do listen, might not interact, but do listen.
1:01:11
SPEAKER_04: I always get good comments.
1:01:13
SPEAKER_04: And yeah, I will continue to do it to help help those out there.
1:01:18
SPEAKER_00: Do you think your experience of research, especially from a power planning perspective, helps you build content ideas and your understanding of the FCA requirement around marketing and branding, yeah, promotions, gives you the confidence as well to know what you're saying is right from an FCA compliance perspective.
1:01:42
SPEAKER_00: Also, do you find that?
1:01:43
SPEAKER_04: Yes, and my compliance consultant does follow me on Instagram, so I'm sure he'd tell me.
1:01:48
SPEAKER_02: Yeah.
1:01:49
SPEAKER_04: If I'd got it wrong, I think you'd be straight on me.
1:01:52
SPEAKER_04: But yeah, and I try, I don't, I never try and push, um well, I can't push advice, but it they're quite say vanilla things that I'm talking about, like the state pension, the information's out there, and I will I try and do it in the simplest way, and I will write a script and I'll change the script and move words around and try and shorten it.
1:02:13
SPEAKER_04: But yeah, that you know, I've been doing this a long time, I've been answering these questions a long time.
1:02:19
SPEAKER_04: So I know from sitting and talking to people, you can either see their eyes glaze over and go, You've lost me there, or them go, Oh, that's the website, let me write that down.
1:02:27
SPEAKER_04: So, one of my videos a couple of weeks ago, I'd just been chatting with a friend and she went, What's that website to track your pensions?
1:02:35
SPEAKER_04: Can you do a video on that?
1:02:36
SPEAKER_04: So can you do?
1:02:38
SPEAKER_04: I did, yeah, and the content's always there.
1:02:42
SPEAKER_00: How many times do you stop and start?
1:02:45
SPEAKER_04: Yesterday I must have done about 15 takes.
1:02:50
SPEAKER_04: Yeah, it sometimes it just flows, and but then there's other times you know you say a silly word or yeah, but we get there.
1:03:00
SPEAKER_00: Hey Constant, look, you know, I'm always I'm always keen to see financial planners get on social media because they're the ones that are knowledgeable, right?
1:03:11
SPEAKER_00: They're the experts and they're qualified.
1:03:12
SPEAKER_00: And I'm not gonna poo-poo and put down financial coaches because there's a whole niche out there, but it's dangerous, some of them, the advice that's being given.
1:03:20
SPEAKER_00: It's wrong, you know?
1:03:22
SPEAKER_00: And I just think financial planners need to stand up and get on social media and invest in content creation because you have so much knowledge and so much to give.
1:03:32
SPEAKER_00: I think we've even discovered here, just from having this conversation with you, that look, you're a financial planning firm, you've got banks of knowledge and content sitting in your power planning team, operational team.
1:03:45
SPEAKER_00: I wonder how many sitting in there are saying, like, I don't want to be a financial advisor, but you know what?
1:03:49
SPEAKER_00: I absolutely love following these financial coaches.
1:03:51
SPEAKER_00: I love seeing Catherine Morgan talking about it all.
1:03:53
SPEAKER_00: And I think it lends itself beautifully to women.
1:03:55
SPEAKER_00: Women do like to kind of, again, give back and show um and to educate people because they're kind empathetic and caring.
1:04:03
SPEAKER_00: And I also think women come across on on um social media really well when it comes to money.
1:04:08
SPEAKER_00: The great transition of wealth happening, more female millionaires, more women taking control of finances.
1:04:13
SPEAKER_00: I think it's a real niche there.
1:04:15
SPEAKER_00: And I think more women in power planning roles, for example, that are level four qualified loads, right?
1:04:19
SPEAKER_00: That aren't becoming financial advisors, that's another story.
1:04:21
SPEAKER_00: But what a lovely area to transition.
1:04:23
SPEAKER_00: So if you are a power planner and you're thinking I want to build upon my skills, my social skills, and I feel like I've got something to give, and I think social media is an area, knock on your mic, you know, knock on your boss's door and say, I've got some ideas here, I've got some content creation here.
1:04:36
SPEAKER_00: Can I have a go?
1:04:37
SPEAKER_00: Because I'll tell you what, those firms that engage and have coaches on their on in their businesses, right?
1:04:42
SPEAKER_00: They're the ones that are going to be generating those clients through social media, whether that's TikTok, whether that's Instagram, LinkedIn, YouTube, right?
1:04:48
SPEAKER_00: You're gonna be building a client audience of watchers, viewers, looking and engaging and trusting and building a relationship with you before they've even bought anything from you, before they even come and seek that advice, right?
1:05:00
SPEAKER_00: Let alone the technology that's out there that's simplifying the advice process for the 95% of those that cannot get advice at the moment because an advice firm says you're not worth it.
1:05:09
SPEAKER_00: You know?
1:05:11
SPEAKER_00: It's also a great route for trainees coming in.
1:05:15
SPEAKER_00: You know, come on, come in, try, try, let's get you trained up talking to clients, but in a different way.
1:05:20
SPEAKER_00: And as we talk about that sort of technology where we're servicing the clients that perhaps are the next generation that don't have enough money considered to be worthwhile for an advisor to invest.
1:05:30
SPEAKER_00: What are you doing about that as a business?
1:05:32
SPEAKER_00: Have you thought about that?
1:05:33
SPEAKER_00: Have you thought about how you're going to engage with the 95% of the population that can't seek advice at the moment, but will need it in the future?
1:05:40
SPEAKER_04: Yeah, so obviously the Instagram and TikTok page are there, and I hope that people will reach out through that.
1:05:47
SPEAKER_04: I do have people already that do, and you never know what their future holds when they will need financial advice.
1:05:52
SPEAKER_04: But we aren't a company that closes the door if you don't have enough money.
1:05:56
SPEAKER_04: So we took on a client, he's young, but he's an Entrepreneur, he's earning good money, he runs his own business, but he he doesn't have lots of assets to invest.
1:06:05
SPEAKER_04: But he wants to invest, we've been able to offer him a service where we can help him start on his investment journey, and he will continue to grow as a client.
1:06:15
SPEAKER_04: I don't think as advisors, and yes, we have to make money, we all have to pay bills, but there is room to help those that want to start saving and investing.
1:06:27
SPEAKER_04: And if they start with my videos and then they suddenly reach out and go, Where could I go to sort of open an ISA?
1:06:34
SPEAKER_04: You know, I can point them in the direction of companies that they could go to, and it just starts that conversation, you know, and they might inherit in the future a big chunk of money, and then they come back to you.
1:06:45
SPEAKER_04: So it's for me, financial advice, financial guidance should be open to all.
1:06:51
SPEAKER_04: And I think for a long period of time it has been right, you haven't got the assets, we can't help you.
1:06:57
SPEAKER_04: No, I like yeah, we should be more open.
1:07:00
SPEAKER_00: I think um I think the with with the likes of things like Ningi, Ammonite, the technology.
1:07:07
SPEAKER_00: I think you look at octopus, you know, octopus with their money coaching and all of that.
1:07:11
SPEAKER_00: There are lots of firms that are that are the that are adapting and changing with apps and technology to be able to offer not just co not just advice, but coaching and and and and product selection, pre-selection, simplifying the advice process.
1:07:25
SPEAKER_00: So everybody's has that accessible advice.
1:07:28
SPEAKER_00: But the the the clever firms are thinking about the future and that transition of wealth.
1:07:33
SPEAKER_00: You know, even pulling in 10,000 people that maybe aren't even thinking about a pension, they will do it at some point.
1:07:40
SPEAKER_00: But if you're giving them content that educates them along the way, and then you've got a simplified solution where they can just start saving, right?
1:07:47
SPEAKER_00: They're in your ecosystem, aren't they?
1:07:49
SPEAKER_00: You know, and it becomes a great place for that future wealth.
1:07:52
SPEAKER_00: So you're you're preparing where your money's going to be coming as a business, like 10 years' time, you know, it's that next generation of wealth.
1:08:00
SPEAKER_00: And then because I think there are so many firms out there where, you know, the average age of the advisor or the average age of the um the owner is quite high, they're not thinking about, they're thinking about exit, and rightfully so, that's the stage they're at.
1:08:11
SPEAKER_00: It's not, you know, but they're not really thinking about evolving the business to support those types of clients.
1:08:16
SPEAKER_00: And that's where we've got this advice gap.
1:08:18
SPEAKER_00: And even like it's not even that interesting for somebody to come in and work in a financial advice firm because they want to do the stuff they're seeing on Instagram, you know, all these coaches are are doing.
1:08:28
SPEAKER_00: And I, you know, I often think I had a firm, I'd be thinking, right, yes, I've got the wealth management side where we advise clients of wealth, right?
1:08:35
SPEAKER_00: And that's a that's a package within its own right, it's a business in its own right and a brand within its own right, yeah.
1:08:40
SPEAKER_00: But throughout that, you know, you go down, not down as such, but across to other types of clients at other stages of their life.
1:08:48
SPEAKER_00: And can I build a simplified proposition that services each of those individuals at that stage?
1:08:53
SPEAKER_00: And that with the hope of transitioning them across to full end state planning, wealth management, all that stuff, you know, pension drawdowns, all that kind of thing at the end.
1:09:04
SPEAKER_00: And and I think that would be exciting.
1:09:06
SPEAKER_00: And if I had that, and that was my financial advice business, how exciting would it be to be able to sell that to an advisor to come and join my business?
1:09:14
SPEAKER_00: Why don't you come?
1:09:15
SPEAKER_00: I could even have a trainee route at the beginning that you your job is to find those individuals who haven't got their pensions yet, who haven't got this, that, and putting them into an ecosystem where we can start marketing system and you can start building a relationship with them.
1:09:27
SPEAKER_00: And it could be a real cheap, you know, 0.2% charge or whatever, or a subscription model to an ecosystem where they can learn.
1:09:35
SPEAKER_00: And I think that's such a great ground for training and developing new younger advisors.
1:09:40
SPEAKER_00: Oh, and by the way, a new younger advisor isn't then going to be considered too young by somebody to give financial advice, which I hear a lot of, you know, perception because they're younger.
1:09:50
SPEAKER_00: Well, what do you know about money?
1:09:52
SPEAKER_00: I'm 65, you know, my last advisor was 50.
1:09:54
SPEAKER_00: And you know, it creates this kind of again, this world, this ecosystem where new blood can come in, and yeah, they might not be earning 50, 60, 70, 80 grand within their first couple of years.
1:10:03
SPEAKER_00: But who does in financial advice?
1:10:05
SPEAKER_00: That's a myth.
1:10:06
SPEAKER_04: Yeah, it is a myth.
1:10:07
SPEAKER_04: Yeah.
1:10:08
SPEAKER_04: And we in our business, we've got we're called chapter house, and we've got something called chapters, which is a service.
1:10:14
SPEAKER_04: So we've got our clients, the wealthy, that have got built their wealth, but they have you know children that haven't got that wealth yet.
1:10:21
SPEAKER_04: So we, you know, we're there to support people through the chapters of their life and the service that we offer each chapter, and that just you know has got us thinking about how do we service these smaller clients that you know will get the wealth in the end, but you need to engage with them.
1:10:37
SPEAKER_04: They're not just going to come and knock on your door in five years' time and go, oh, I've inherited all this money.
1:10:42
SPEAKER_04: Let me speak to you.
1:10:44
SPEAKER_00: What a wonderful way to end the conversation.
1:10:46
SPEAKER_00: I've had a really enjoyable chat with you.
1:10:49
SPEAKER_00: I feel really educated, so thank you so much.
1:10:52
SPEAKER_00: And I think anybody listening to this podcast who's thinking about taking a journey down the directly authorised route, perhaps they're sitting in a power planning role.
1:10:59
SPEAKER_00: They've got an entrepreneurial streak.
1:11:00
SPEAKER_00: I think they're going to take a lot from this conversation.
1:11:03
SPEAKER_00: I think you're such a well-rounded individual when it comes to financial planning.
1:11:07
SPEAKER_00: And I and I want to continue our conversations.
1:11:10
SPEAKER_00: I want to continue to be connected to you and see your journey and share your journey with others because I think it's really, really inspiring and really grounded and down to earth.
1:11:19
SPEAKER_00: And you come across really well.
1:11:20
SPEAKER_00: And I wish you and your your husband, you know, the best of luck with your business.
1:11:24
SPEAKER_00: Um, and um, I might be knocking on your one day asking for some mentorship.
1:11:29
SPEAKER_04: Please do.
1:11:29
SPEAKER_04: And anybody else out there, I'm very open to questions, so yeah, just find me on Instagram.
1:11:36
SPEAKER_00: Beautiful.
1:11:36
SPEAKER_00: What's your handle on in Instagram?
1:11:38
SPEAKER_04: It's Lexi Talks Money.
1:11:40
SPEAKER_00: Perfect.
1:11:42
SPEAKER_00: Alexandra, thank you so much, and have a wonderful day.