Clapton Consultants Press Releases

Press Releases
02.12.16 Financial services firms must urgently adapt business models to survive today’s challenging climate

Financial services firms must urgently adapt business models to survive today’s challenging climate

Clapton Consultants; the chartered accountancy practice has said that many financial services organisations should consider adopting alternative business models in order to meet the demands of current industry challenges.

Major ongoing initiatives shaping the current landscape including RDR, auto-enrolment, guidance v regulated advice, robo-advice and the government objective to increase individual savings for retirement are all changing the working environment of financial services. This makes it increasingly challenging for firms to identify a scalable and profitable business model that fits with these trends; the chartered accountant has said.

Many UK asset managers who are suffering as a result of a growing regulatory burden and increasing scrutiny on charges are using cash to buy distribution. However, this strategy means that it is no longer sufficient to collect funds passively through independent financial advisers, or to acquire assets by peer to peer acquisition or merger. Both of these ‘tried and tested’ models do not account for the new assets that the government wishes the private sector to acquire and are therefore, no longer fit for purpose.

Eric Clapton, Owner/MD of Clapton Consultants says:

‘These businesses would be well advised to consider a new approach which represents a return to the old strategy of an integrated business that has control of a sales force that will concentrate on distributing regulated products to retail customers. Control does not necessarily mean total ownership, rather obtaining a significant influence over which products are offered. These products will meet the suitability checks for the new savings, and just as importantly may be distributed via guidance just as effectively as via regulated advice.’

Clapton added:

‘For regulated financial advisory firms, this vertical integration may appear as a considerable threat; but successful IFAs are trusted by their clients and have considerable skills to ensure that the products sold are suitable. Combining the two virtues minimises complaints, increases new business and allows that distribution to be scalable and profitable with good processes in place. Such businesses will always be in demand so the opportunity for advisers is to develop their firms to the point where they are attractive to investors who are willing to pay a premium for quality. This is likely to involve the advisory firm developing its management and systems skills to reduce reliance on key individuals.’

07.10.16 Advisers and accountants should alter their perspective on auto-enrolment to maximise business opportunities

Advisers and accountants should alter their perspective on auto-enrolment to maximise business opportunities

Clapton Consultants; the chartered accountancy practice specialising in the financial services sector has responded to an industry survey from The Pensions Regulator suggesting that the level of interest in auto-enrolment among financial advisers has fallen markedly over the last twelve months.

The survey revealed that a growing number of advisers no longer view auto-enrolment as a business opportunity. However, HM Treasury recently issued an open consultation entitled “Introducing a Pensions Advice Allowance” which suggests there are further opportunities for accountants and IFAs to explore in this area.

The consultation document suggests that the tax free pensions allowance of £500 per individual may be used in conjunction with the tax exempt allowance of £500 for employer arranged advice.  This provides a maximum tax advantaged allowance for retirement advice of £1,000 per pension member.  The measures are scheduled to be in place by April 2017.

Eric Clapton, MD of Clapton Consultants says:

‘Government strategy is to use employers as a conduit to provide financial advice to many more people.  Plugging the advice gap is a major objective and HM Treasury is willing to sanction tax breaks to achieve that aim.

Every accountancy practice has business clients who are affected by auto enrolment legislation. Collaboration between accountants and regulated advisers will maximise the commercial reward afforded by this government sponsored opportunity. Notwithstanding the fact that margins on workplace pension advice are under serious downward pressure, ignoring this area of business could be a costly mistake.’

20.06.16 Professional advisers must collaborate more closely to achieve optimum client outcomes

Professional advisers must collaborate more closely to achieve optimum client outcomes

Clapton Consultants; the chartered accountancy practice, has said that advisers must now work more closely with accountants in order to deliver the best financial solution for their clients. The firm has stated that by collaborating more closely IFAs and accountants are better placed to help clients take full advantage of available tax breaks and calls for greater industry collaboration to address this issue at its core.

Legislative changes to taxation laws prompted by this year’s Budget mean that advisers are now under increased pressure to take full advantage of the new tax breaks for savers. These include spousal income allowance, the savings allowance and the dividend nil rate band.

With assistance from a chartered accountant, advisers could now use these allowances to achieve tax free savings of up to £20,000 per annum for a client with a joint income of up to £150,000, according to Eric Clapton, Founder; Clapton Consultants.

Clapton says:

‘This year’s Budget has provided advisers with ample opportunity to achieve tax efficient earnings on behalf of their clients. With more accountants wishing to become actively involved with financial planning by using the opportunities afforded by their DPB licence there is no longer an excuse for the industry’s failure to collaborate more effectively.’

Clapton added:

‘The key to a successful adviser/accountant relationship is understanding each other’s limitations and respecting each other’s boundaries. The accountant’s role is to liaise with HMRC, educate the client on taxation issues and provide the adviser with an assessment of the possible savings that could be made with an effective plan in place. It is then the role of the adviser to create and execute a suitable financial plan based on that assessment. Providing that neither side attempts to tread on the other’s toes, this approach can be hugely beneficial for both parties and most importantly; the end investor.’

Press release file/s:

Collaborate more closely Press Release
Collaborate more closely Press Release

03.06.16 Surviving and thriving: How the ICAEW ‘Tomorrow’s Practice’ initiative can help your business

As a newly launched consultancy, we have first-hand experience and an in-depth knowledge of how to handle the competition and challenges faced by practitioners in today’s accountancy industry.

The ICAEW ‘Tomorrow’s Practice’ initiative has played an integral role in equipping Clapton Consultants with this invaluable knowledge and understanding and has since proved to be invaluable to our business. We also believe it will be highly effective in helping other similar businesses to meet market challenges in a similar way.

‘Tomorrow’s Practice’ is a specialised project that focuses on handling the competition and challenges within the accountancy profession and supports businesses in retaining clients and maintaining profitability.

One of the key outcomes of the ‘Tomorrow’s Practice’ project was the ‘Traffic Light Guide’, which shows practitioners what investment services they are able to offer with Designated Professional Body status. This is helpful not only to firms like Clapton Consultants but also to clients and regulated advisors.

This guide helps businesses like ours understand when and why you might share referrals in your network effectively; and enables you to better control that client referral whilst remaining integral to the process; so strengthening the client relationship.

For example, we might refer a client’s pension strategy to a specialist financial adviser, but will remain closely involved in the development and execution of the solution. This collaborative approach is proving to be a highly successful way to attract and retain business within today’s competitive market.

For more information please contact us on 0208 880 0162

Press release file/s:

Surviving and Thriving Press Release
Surviving and Thriving Press Release

16.03.16 Budget Reaction 2016

In this Budget, The Chancellor has prioritised long term economic stability above all else. His plan to support economic growth in spite of low productivity and turbulence in financial markets is based upon incentivising people to save harder and make sufficient provision for retirement. As such, the main winners of this year’s Budget are savers, pensioners and small business owners.

The newly introduced ‘Lifetime ISA’ will be welcomed by many young people who are struggling to buy a home and save for their retirement. It offers savers financial incentives from the Government and unlike a pension, will allow them to release tax free funds at retirement. Furthermore, the current ISA limit will also increase to £20,000 from next April which allows savers to really make the most of their tax free earnings.

Small business owners are also set to benefit as they will now enjoy lowered corporation tax, cuts in stamp duty for commercial premises and reduced business rates whereas larger businesses are set to be left picking up the tab. National Insurance Contributions are also set to be cut for the self employed from 2018 which will be applauded by a considerable percentage of the working population.

Similarly, existing pensioners will make considerable savings as they will be immune from the new tax band which will apply at a much higher income level than expected. They are also likely to continue to benefit from favourable changes to taxation on savings and investments.

As a result of the lack of tax relief on contributions, for a 40% tax payer it will now cost almost twice as much gross income to save the same level of retirement fund using an ISA compared to using a pension. At the net level the difference increases to over 287%. For a basic rate tax payer this difference falls to 156% of net income. As such, the Chancellor has further incentivised working people to prepare sufficiently for their retirement.

The decision to exclude more tax payers from the higher rate tax band is highly strategic as it will make retirement savings more palatable to a larger number of voters while still benefitting the Exchequer. Taking more people out of higher rate income tax will also benefit the economy if the tax savings are spent rather than saved. This is likely to improve the receipts from indirect taxes, particularly if rates are increased.’

Press release file/s:

Budget Reaction 2016 Press Release
Budget Reaction 2016 Press Release

08.12.15 Closer collaboration needed between IFAs and Chartered Accountants

ICAEW Chartered Accountants and IFAs should focus on working more closely together in the coming year according to delegates at a recent Retirement Savings Summit. Over two-thirds of those attending also thought that there should be a single regulator for workplace pension schemes.

View the original release here or download the full release below.

Press release file/s:

Retirement Savings Conference Press Release
Retirement Savings Conference Press Release

27.10.15 Ex-Wellian CEO launches ‘Clapton Consultants Ltd’

Today, Eric Clapton; former CEO of Wellian Investment Solutions, newly appointed Chairman of Greenstone Financial Planning and practising chartered accountant, has announced the launch of Clapton Consultants Ltd.

View the original release here or download the full release below.

Press release file/s:

Launch Release - October 2015
Launch Release - October 2015

Press Releases

02.12.16 Financial services firms must urgently adapt business models to survive today’s challenging climate

07.10.16 Advisers and accountants should alter their perspective on auto-enrolment to maximise business opportunities

20.06.16 Professional advisers must collaborate more closely to achieve optimum client outcomes

Collaborate more closely Press Release

03.06.16 Surviving and thriving: How the ICAEW ‘Tomorrow’s Practice’ initiative can help your business

Surviving and Thriving Press Release

16.03.16 Budget Reaction 2016

Budget Reaction 2016 Press Release

08.12.15 Closer collaboration needed between IFAs and Chartered Accountants

Retirement Savings Conference Press Release

27.10.15 Ex-Wellian CEO launches ‘Clapton Consultants Ltd’

Launch Release - October 2015

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