FECIF - The European Federation of Financial Advisers and Financial Intermediaries
  • SAVE THE DATE // 10/DEC/2015 // SAVE THE DATE
  • 2nd EUROPEAN FINANCIAL CONFERENCE 2015
  • 10 DECEMBER 2015 // BRUSSELS, BELGIUM
  • »SOCIAL WELFARE IN TIMES OF ECONOMIC STAGNATION:«
  • Can smart regulation stimulate private pensions?
  • 10th DECEMBER 2015 // Renaissance Hotel, BRUSSELS (BE)
fecif_db_button

Editorial - May 2017

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

The value of advice – and the cost of being unadvised

There have been numerous studies over the years that have shown the value of good quality financial advice – not least, the fact that clients that receive it are, in general, significantly better off in retirement and much more financially protected during their life journey towards that point.

I was therefore very interested to see a recent survey that highlighted the serious issues that can arise when unadvised clients use guidelines or “rules of thumb” that are no longer valid. The survey, conducted by AEGON, made the point that income levels that used to be acceptable, and which many non-professionals still believe in, are now highly dangerous to their financial futures.

For instance, the survey stated that one in five people using a “rule of thumb” yearly retirement income of 4% will run out of money in 30 years – in other words, before they die in some cases. In addition, many of those individuals want and expect to pass assets on to future generations – many will not do so, or will pass on far less, with this sort of “planning” in place.

The report highlights the importance of personalised and professional financial advice, particularly regarding income rates and projections.

The “‘4% rule”, developed by US adviser William Bengen in 1994, has often been turned to as a guide for determining a sustainable level of retirement income. However, Aegon’s research has found that in today’s economic climate, a 65 year old with a low risk portfolio, taking 4% of the initial amount each year, has a one in five chance of running out of money within 30 years.

The report goes on to stress that professional advisers are well aware of the restrictions of using and relying on such guidelines and “rules”. They are generally extremely good at monitoring the situation for clients, on a regular basis, to ensure that warning signs are heeded early on. When one considers that some consumers are actually still using a higher guideline, of 5% per annum, this further highlights the dangers of “DIY” financial planning and the relative and significant value of professional advice.

Obviously not all advice has always been good, but with sensible and workable regulations ensuring that advisers operate within an appropriate framework, the vast majority of such advice will be highly positive for consumers in the future, as it has been in the past.

 

References/acknowledgements:

https://www.aegon.co.uk/content/ukpaw/news/analysis_shows_rulesofthumbarenosubstituteforfinancialadvice.html

 

 

 

Share this editorial >>

 

Editorial - April 2017

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Are you really ready for the future?

“The other day Ray was having a conversation with his 13 year old son and they ended up on a topic / issue that they needed more info on – his response was to “Google” it, his son chose to “YouTube” it. He realised at that point that they had different ways of looking for information, learning answers, and engaging with...

>> CONTINUE READING

Editorial - March 2017

Vania FranceschelliVania Franceschelli
FECIF Board Member & ANASF Executive Committee Member

We need new market propositions not unnecessary bans

The final date for the transposition of MiFID II in each Member State – January 3rd 2018 – is fast approaching. Is it possible to see some initial insights into the industry, in order to foresee the impact of the Directive on business models? In particular...

>> CONTINUE READING

Editorial - February 2017

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Transparency not commission is the real key for 2017 and beyond

A number of industry commentators keep stating that it’s now all about the end of commission on a global basis – but is it, really? We all know of the switch to fees in the UK, and also a small number of other locations around the world, but certain other jurisdictions have also been quoted as moving in that direction, only for regulators in...

>> CONTINUE READING

Editorial - December 2016

Paul ResnikPaul Resnik
Cofounder & Director of Finametrica

Robo 3.0

Robo advisors are, beyond any doubt, hugely disruptive to the financial advice market. But not in the way that many people expect.

Many commentators and analysts are still focused on trying to pick the ‘Uber moment’, when robos wipe out the old world by...

>> CONTINUE READING

Editorial - October 2016

Schroders Investment ManagementSchroders Investment Management

Over confident investors and the help they need

Investors thinking they know more than they do about investing could cause problems when it comes to their future financial planning.

Investors could be missing out on billions of Euros in investment returns by over estimating their own ability to understand...

>> CONTINUE READING

Editorial - August 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Robo-advice financially unviable

The above was the main content of an article in a financial industry publication last month. This was based on a recent study, which found that UK robo-advisers are structured in such a way that they will lose money and “most will go bust before acquiring the sizeable assets under management needed to survive”.

Food for thought, not least for regulators – many of whom seem...

>> CONTINUE READING

Editorial - June 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Do consumers and advisers finally have the same goals?

Over the last year or two it has struck me that the increasing complexity of regulation is not only being seen in a negative light by the financial advisory and intermediary market – there are also growing concerns being expressed by consumers and, in particular, consumer groups, that this is having a negative impact on the public at large.

>> CONTINUE READING

Editorial - April 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Interesting implications for the rest of Europe and beyond?

Last month saw the publication of the results for the UK’s Financial Advice and Market Review (FAMR). Whilst this might not have had much in the way of impact elsewhere across Europe, it perhaps should have done...

>> CONTINUE READING

Editorial - February 2016

Jirí ŠindelárJiří Šindelář
Member of FECIF board of directors

The Brussels’ Circle of Overregulation

Even though the European Union was given a series of warnings regarding its effort to regulate anything and everything, it did not slow down. Despite proclamations about “changing the course” and “smart regulation”, from November to December...

>> CONTINUE READING

Editorial - December 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Robo-advice: fact and fiction

I have lost count of the amount of articles about so-called robo-advice. It certainly is the “flavour of the month” and, if we believe all that we hear, will soon become the most important element in the delivery of financial services. I have some strong views on this….

>> CONTINUE READING

Editorial - October 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Where now for commissions?

European regulators eventually “stood back from the brink” and within the agreed text of both MiFID 2 and the IDD (Insurance Distribution Directive) fell short of a complete commission ban – a ban that many thought might well happen as little as 12 months ago!...

>> CONTINUE READING

Editorial - August 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

The importance of effective representation

The compromise text for the Insurance Distribution Directive (IDD) was recently finalised and it was very pleasing to see that the vast majority of the proposals put forward by FECIF in the recent consultation period have been heeded.

>> CONTINUE READING

Editorial - June 2015

Garry HeathGarry Heath
Director General Libertatem

Garry Heath announced the launch of Libertatem last month, a new trade association set up to represent all types of financial advisers based in the UK. His thoughts and plans are outlined below – they have great relevance to the rest of Europe.

Over the last decade the industry has lost sight ...

>> CONTINUE READING

Editorial - April 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

10 reasons to use a Financial Adviser

Many people have the perception that only the very wealthy need financial advice. However, the facts are that anyone can potentially benefit from such advice...

>> CONTINUE READING

Editorial - February 2015

Garry HeathGarry Heath
Journalist, The Heath Report assured

IFAs: Support trade associations or jeopordise independence

The last month has been one of travel. Firstly a symposium to address in Toronto and then it was Brussels and the FECIF conference...

>> CONTINUE READING

Editorial - September 2014

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Our immediate goals

I was very pleased to be elected as the new Secretary General of FECIF at our last Board meeting, it is very much an honour to represent a body that supports and promotes the adviser...

>> CONTINUE READING

Editorial - June 2014

Paul StanfieldPeter Brooke
Financial Planner, member and partner with the Spectrum IFA Group

Should I use a Financial Adviser to help me?

Creating a financial plan is NOT a complicated thing to do; it is an audit of where you are today, financially, and where you want to be at different stage...

>> CONTINUE READING

Editorial - January 2017

Daniel GuéguenDaniel Guéguen
Head of Strategy and Lobbying at PACT European Affairs

2017: action, action, action

”My right flank is destroyed, my left flank is in retreat, everything is fine – attack!” Those were the words of General Foch in the darkest moments of World War One. We are there once again. Sink or act – that is the choice we have.

>> CONTINUE READING

Editorial - November 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Playing your Trump card

Well, for those of us surprised by the Brexit vote - and there were plenty in the City of London that is for sure – the US election creates a whole new perspective with regards to astonishment, and on a much wider spectrum. I don’t know what it says about Hillary Clinton and her campaign – well, on reflection, I probably do – but the fact that Trump won, allied to the UK’s EU...

>> CONTINUE READING

Editorial - September 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

“The reports of my death have been greatly exaggerated”

This famous quote was a statement made by Mark Twain on hearing that he had been mistakenly announced dead. Although it is apparently a slight misquote, the meaning remains very much in line with what the great writer intended. It also came to my mind the other day when I was once again thinking about so-called “robo-advice” and...

>> CONTINUE READING

Editorial - July 2016

John WestwoodJohn Westwood
FEIFA Board Member and Blacktower Group Managing Director

Brexit: a disaster or something far less worrying?

The British electorate has given its verdict on the UK’s membership of the European Union in no uncertain terms but, in spite of some emotional appeals to the contrary, this is not a disaster.

It is worth remembering that on the 20th February 2016, when David Cameron announced that the EU referendum would...

>> CONTINUE READING

Editorial - May 2016

Rebecca MurphyRebecca Murphy
Director of Sales & Marketing at Praemium
Re-engaging the investor

Re-engaging the investor

It’s rough sailing right now for investors and savers alike! Volatile markets and low interest rates are the norm, and investors are bombarded with information about products and services without understanding how any of it relates to them...

>> CONTINUE READING

Editorial - March 2016

David DentonDavid Denton
Member of FECIF board of directors

You can run, but you can’t hide

The Organization of Economic Cooperation and Development’s (OECD) Common Reporting Standards (CRS) - also known as Automatic Exchange of Information - is gathering pace post FATCA. For decades, developed economies have wrestled with the notion that wealth overseas, whilst not illegal...

>> CONTINUE READING

Editorial - January 2016

Hans-Jürgen BretzkeHans-Jürgen Bretzke
CEO of FinanzAdmin  GmbH

Some of the myths surrounding fintech companies

“I would go so far as to say that any broker armed with an average customer base and network is better placed than a fintech company on the strength of his or her client contacts alone.”

In this guest contribution, Hans-Jürgen Bretzke, a member of ...

>> CONTINUE READING

Editorial - November 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Pension provision - is this the real “gap”?

The “advice gap” has received considerable coverage in the personal finance pages and trade press for some time now, across the UK in particular but it is also a growing concern across Europe and beyond. I wonder, however, if the focus should really be on the “pension’s gap”...

>> CONTINUE READING

Editorial - September 2015

Vania FranceschelliVania Franceschelli
Member of the Board of FECIF / Member of the Executive Committee of ANASF (Head of Foreign Affairs)

In July FECIF sent its contribution to the ESMA Consultation Paper on the Draft guidelines for the assessment of staff knowledge and competence under MiFID II. This Consultation Paper is of outmost importance for all financial advisors in Europe, as it provides the basis for the definition of the qualification and...

>> CONTINUE READING

Editorial - July 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Making regulation more effective and accountable

The month of May saw the launch of a new trade association in the UK, as highlighted in last month’s editorial. It seems to me that its aims and concerns are highly important elsewhere in the EU.

>> CONTINUE READING

Editorial - May 2015

Johannes MuschikJohannes Muschik
Chairman of FECIF, Chairman of AFPA

New Chairman takes office

Back to my desk after our Annual General Meeting where I have been elected as Chairman for the period 2015/2016.  The AGM was also an opportunity to exchange views on a number of hot topics concerning our industry...

>> CONTINUE READING

Editorial - March 2015

Jirí ŠindelárJiří Šindelář
Chairman of USF CR / Member of the board of FECIF

Squaring the circle, or back to roots? A view of European regulatory turmoil from the former “Eastern Bloc”

When the Velvet revolution overthrew the Czech communist government in 1989, a crucial part of the change was the transition to liberal...

>> CONTINUE READING

Editorial - December 2014

Graham ReidGraham Reid
Managing Director at Classic Financial Solutions CVBA

The true worth of an adviser

A few years ago one of our clients suffered a nervous breakdown.  After early retirement he had continued working as a consultant from a small office at home, from where he also managed the family finances, something in which ...

>> CONTINUE READING

Editorial - July 2014

David CHARLETDavid CHARLET
ANACOFI

For my first editorial as President of FECIF, I would like to thank every member of the Board, the General Assembly and the Staff.
I would also express a special thought for Daniel Nicolaes, one of the best representatives of our profession in Europe, who disappeared a few months ago.

>> CONTINUE READING

 

 

fecif_logo

 

Fédération Européenne des Conseils et Intermédiaires Financiers (FECIF)
“Generali” Tower - Business Centre
Avenue Louise 149/24
B-1050 Brussels
BELGIUM

©2013 FECIF  |  Home  |  Legal Notice  |  Copyright  |  Contact

 

 

FECIF is a member of:  

 

 

 

concept & design by ivan cuk