1.
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THE NEWSLETTER FOR 2PLAN
2PLAN NEWS
NEWS BUSINESS UPDATE TCF
2plan: a safe environment
Even in this harsh economic climate, there are substantial
opportunities for you, as professional IFAs, to ensure you are the
trusted choice for independent financial advice for your clients. This is
particularly so given the reckless behaviour of some of the banks -
mismanaging their businesses with little regard for the consumer and
ignorantly believing that their brands will be sufficient excuse to
continue to bring customers back into their branches. Although some may still need to
use the counter service, surely few of us need any more proof, if ever it was needed
anyway, that the banks do not have their clients’ best interests at heart.
We are IFAs. We are not tied, multi-tied or fit into any future
groups of sales or generic advice. What this means is that we act
on behalf of the client and not on behalf of a bank or
insurance company. We don’t have to hit sales targets, product
targets or focus on one particular product because that’s the one
that needs selling this particular week. We don’t rely on counter
staff grabbing the unexpecting consumer and sending them
across to see a sales person - with a nod and a wink on the
premise of cheaper house insurance to try and sell them
omething else.s

2. THE NEWSLETTER FOR 2PLAN MEMBERSNEWS BUSINESS UPDATE TCF
Feedback… Any comments on this article please contact news@2plan.com
We are not multi-tied and therefore we don’t sell one particular protection product which is more expensive for the client to
purchase, simply because the commission is loaded in favour of the adviser / company. This so-called dual pricing practice
is archaic and demeaning: there’s the real price (which I’m not going to show you Mr Client) and here’s the one specially
arranged between us and the insurance company for our own benefit. As IFAs we should be proud of the fact that we
always act on the clients behalf and in doing so look to build long lasting, trusted, professional business relationships with
them.
These are also opportunistic times for IFAs to take
stock and ensure they are with the right company. A
company which provides real, valued services and
can importantly offer the type of safe environment that
reduces risks in their businesses. Gone are the days
when a group of IFAs can coral themselves together
and pretend they are a business with all this involves
or a sole trader acts without any real regulatory
oversight. We operate in a regulated environment and
businesses need solid foundations and infrastructure
to last for years ahead, so we don't have a repeat of
the failed businesses we all have seen in the past.
We need IFA firms with robust financial security and a solid business model, based on cost-efficient technology and
systems. Firms which invest in the necessary training and development needed to provide high level advice will survive
even the worst credit crunches. Ultimately this will create a landscape with a smaller numbers of firms, but with greater
quality - producing an adviser community who can provide real value to clients.
I recently read Ernst & Young’s UK Life and Pensions Outlook 2009, entitled “Shifting Sands”. As you probably know, Ernst
& Young is a well known global leader in assurance, tax, transaction and advisory services and they carry out thorough
industry research, especially with regard to the financial services sector. In this recent publication they state;
“Given cost and capital adequacy pressures, smaller directly regulated advisers would be wise to
consider making the transition into larger national IFA groups or networks that can offer enhanced
technical support and provide the necessary regulatory security in a financially robust safe haven.”
ir propositions”.
The E&Y report goes on to say;
“Technology will remain the key enabler. Throughout the entire sales and servicing process providers
and advisers will need robust, integrated technology solutions to power the

3.
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THE NEWSLETTER FOR 2PLAN MEMBERSNEWS BUSINESS UPDATE TCF
We have been saying these exact words since we launched 2Plan! Since inception, we have focused on providing a safe
environment for advisers and through thorough industry and regulatory understanding and systematic processes, we are
confident we can reduce the inherent risks in your businesses. “Enhanced technical support” – as E&Y state – and
“regulatory security” perfectly relates to our paraplanning and the fact that we are a regulated business, not a firm who tries
to pass the responsibility over to the advisers - in a vain attempt to hide away from it and the Regulator. Furthermore,
“integrated technology solutions” is exactly what we have designed and built into our 2plan wealth management advice
process in 2008. And you are about to see some enhancements to that at our Q1 technology training days, particularly with
regard to “flexing” and perfectly integrated on-line research solutions – following some great (and very much welcomed)
feedback from our members.
In this day and age, we all need to accept that we operate in a highly regulated world and there is nothing wrong with that –
indeed lack of regulation on the banks has nearly brought the world to its knees! Sole traders and small firms aligning
themselves to so-called ‘Service Providers’ are only leaving themselves wide open and inviting risk into their businesses.
They may believe they are doing everything correctly but as we continue to see, this is not their skill set and they should
operate within regulation if they ever expect to build any value and sell their businesses at the end of the day. Any adviser
buying another IFA business which is not part of a regulated distributor is either very foolish or should be willing to spend
thousands of pounds on due diligence. No-one really knows what’s in there! The pensions thematic review is about to probe
this topic more deeply and indeed may become the nemesis for many directly regulated sole traders and small firms.
2plan wealth management is building a substantial business which
means substantial funding by a major investor so everyone is
aligned. The Regulator and consumer needs to see sustainable
business models and a brand they can identify with. The consumer
wants personal face to face advice. But they must also be
comfortable in the knowledge that their adviser is supported by a
stable company which ensures the adviser is both regulated and has
a substantial firm behind him/her in case anything goes wrong.
These firms will rise above credit crunches and commission hand-
outs from providers and the landscape will change to result in fewer
firms who can provide real value to the advisers and consumers
alike.
I am certain that we, as 2plan wealth management professionals will not just survive the current climate but continue to
prosper, and will emerge stronger because of the environment we are building together.
Chris Smallwood
Chief Executive