Green Financial in the press- RTT mag

Green Financial in the press

Social Media article

MDRT Round the Table magazine, March 2011

Commitment

Combined with todays early morning motion and debate in the House of Commons, I recently read an article in a professional magazine (MDRT, Round the Table, Commit to your future) which has prompted me to write this blog post.

The article discussed how keeping pace with change requires constantly renewing commitment to clients and the financial services profession.

It occurred to me this might be another area where I undertake a lot of work ‘backstage’ but I am guilty of not telling clients and putting it ‘frontstage’.

The financial services profession is often overloaded with uncertainty. Changes in economics, legislation, tax, Government, products, providers – the list is endless.
Even I am guilty in a small way having changed my company operating name a few times over the last few years.
In fact it seems change is the only certainty.

And this is true of other professions, not just the financial world.

I see part of my role for my clients in bringing certainty, in an uncertain world, to their financial life.

I find many clients are calling for an evolved adviser. They want someone who is always learning, adapting and growing with each change to the marketplace rather than retreating.

In the House of Commons today the FSA ‘RDR’ (Financial Services Authority Retail Distribution review) was being debated, with many MPs opposed on behalf of their local IFAs. There are parts of the RDR I am opposed to – I think that unfortunately it will make it easier for the banks to sell unsuitable products to the mass market – and thus continue ‘mis-selling scandals’ – but there are giant swathes of the RDR that I am massively in favour of.

One of these is education.

Since starting as an IFA (15 years and counting now) I have undertaken Continuing Professional Development each year. I also make sure I have at least the minimum educational requirements whenever they are changed (I currently have more than the minimum) and I continue to take exams in areas I operate in (next up is the Society of Tax and Estate Practioners Trust exams in early 2011)

Commitment to Education
As an adviser I believe education is the cornerstone of continued success for my clients. Not only what is in my head but also paying large sums of money each year for access to the very best professional minds and publications available. If I don’t know the answer myself, I know a man (or woman) that does.

But it is not just education that makes a financial adviser. So here are a few other commitments that I make personally and as Green Financial.

Commitment to Expertise
There is a difference of course between the kind of experience and knowledge I am referring to and that which anyone can google. If looking for an answer that has serious consequences for a client’s finances, I know I’d rather it was coming from the mouth of an expert in the field rather than Wikipedia! Information and data are everywhere, knowledge and wisdom are harder (and more expensive) to come by.

Commitment to Green Financial clients benefit
To analyze what is working in the business and re-evaluate any areas found in need of attention
Build long lasting strategic alliances and professional connections
Assemble a team of experts and professionals

Commitment direct to Green Financial Clients
To offer a bespoke, personalised service, where ‘everyone knows your name’
To strive to exceed expectations
If it ever goes wrong, admit it, and put it right
Help clients understand how new rules and regulations affect them personally
Maintain a genuine concern for clients’ objectives (see also http://www.iangreen.com/ethics.php )
Never, ever forget that it’s your money

Commitment to my professional standing
To give back, by being an active member of local, national and international professional organisations (see future blog post for more on this)
Strive to be on cutting edge, to lead and educate, but to retain traditional values
Learn from other professional experts

Planes, (Indian) Trains and Automobiles

Planes, (Indian) Trains and Automobiles




Whilst visiting Mumbai last week I took the time to look at advertising in general and financial services in particular to compare what I saw with what we are told of the ‘Indian investment story’ in the UK press.

Around Mumbai there were many street adverts for ‘luxury’ items such as perfume, chocolate, smart (if not designer) clothes and savings plans.
There were also the global city standards, such as McDonalds and there was a massive amount of mobile phone advertising. On individual poster sites and billboards as could be expected but also crammed onto every spare inch of bus stop, lampost and street vendor stalls the latest handsets and tariffs competed for attention and sales.

The financial services adverts mostly fell into one of three basics.

The first was a version of what we call unit trusts or OEICS and the Americans call mutual funds. Often referred to in India as unit plans these were focused on inward investment or infrastructure. Many funds shouted about their capacity to reinvigorate and/or build trains, bridges, roads and cities.
There is an advert above showing the T.I.G.E.R. fund from Blackrock (a familiar UK fund house, currently famed for a gold related fund). In the UK in the late 90s TIGER in investment terms was the Asian Tiger economies. In India 2010 it is The Infrastructure, Growth and Economic Reform fund. Described as “An open ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing investments in infrastructure, both by the public and private sector.” It is typical of this type of available investment opportunity and often the wording in the advertising was in terms of ‘building YOUR India’.

On that note, the second type of financial services advert was for shares. Remember the ‘demutualisation’ and ‘privatisation’ frenzy of the 80s in the UK when building societies and insurance companies (Halifax, Norwich Union etc) became PLCs and national industry (British Airways, British Gas) became privatised? “If you see Sid, tell him”
It was similar to this with shares in companies that will build infrastructure being offered. There were also a number of sites with ‘Thank You’ adverts, congratulating the Indian Public for buying up all available stock in a certain company that would now build a bridge or dam.
Private equity ownership, either directly or through funds is definitely an aspirational ideal and with returns at a decent level as the economy grows (unlike the recent UK recessionary numbers we are seeing related to interest rates and equities)

The third and final main type of financial advert was educational and promoted saving, either through unit plans (see above), an ‘all in one plan’ the UK saver would recognise as an endowment. There were also pensions for old age. Even allowing for translation UK readers may well be charmed by the following given our more cynical minds with regard to financial services products and advertising:

For Savings: “…special plans are not plans but opportunities that knock on your door once in a lifetime. These plans are a perfect blend of insurance, investment and a lifetime of happiness”
Given the discredited nature of endowments in the UK I wonder what the FSA (Financial Services Authority) would make of a UK insurer advertising an endowment in that fashion here!

For a Pension: “Pension Plans are individual plans that gaze into your future and forsee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future so that you never give up on the best things in life.”
Again, interesting to note the focus on the individual taking their own responsibility as compared to a cultural feel in the UK of a traditional entitlement or right to state benefits. It was also fascinating to see that marketing executives in India are no more creative than their UK & US counterparts in that nearly all pension adverts show an unnaturally young looking senior couple laughing and pointing into the distance :-)

More seriously and pleasingly there were a number of adverts extolling the benefit and value in saving regularly and starting early. It seems this financial wisdom is truly global and timeless. This was super to see as one of the reasons I was invited to India and one of the subjects we discussed at the ‘best practices’ meeting I attended was how MDRT could promote the idea of its members extolling the virtues of ‘financial literacy’ in their own communities.

So I enjoyed my overview of a small slice of Indian Financial Services Advertising and it was a pleasure to see areas such as Life Insurance, which is often neglected here being promoted and purchased en mass (and remember as a nation the UK is generally woefully underinsured, a fact which I sadly see all too often when advising families that have lost a loved one).

But it will be interesting to see what happens in the future. Another of the reasons I was invited was because the UK has endured massive amounts of regulation in financial planning. Much of it needed, some of it overbearing. Developing (in the financial services sense of the word) nations want to learn from our mistakes and successes and MDRT and its global network of members wish to help.

And what about when things don’t work out like the adverts?
So far the Indian Financial Services story has been one of success, with the economy growing, more and more people saving and becoming wealthier and markets rising. I hope the Indian Financial Services profession will deal just as well with the falls in markets, the consolidation of companies and the introduction of regulation when it all surely comes as it has with the current growth and expansion.

Green Penguins?

A Green Penguin?...One of the problems I face with being 'Green' is that sometimes I am required to undertake more travel than may be strictly necessary. So one of the measures I implement is to plant a tree to carbon offset air travel.

As you can see above, Green Financial paid for a tree to be planted in the charmingly named Penguin Wood in Botany Bay, in South Derbyshire. I chose this strangely titled place as when I was in India, I visited the Hanging Gardens which overlook Mumbai and was surprised to find a litter bin in the shape of a Penguin!

A (short) Passage to India

Last week I visited Mumbai in India to participate in an International Practice Management Committee.

It was a brief trip – I arrived Tuesday morning and left Wednesday evening so I only had a short time to visit Mumbai and do any sightseeing. There are a few pictures above showing the city skyline, the Gateway to India and the Taj Hotel.

The whole of Wednesday was spent in the meeting, discussing global best practices for Financial Planners and Insurance Agents. The meeting was arranged by the organisation MDRT – The Premier Association of Financial Professionals.
The main focus of the work was how best MDRT can assist its members in communicating the great work they do.

My hosts were wonderful. They are shown above in the first picture (L-R) Ramanathapura S. Ramanuja, Sunil Sohoni, - along with fellow committee members Helen Jenkins and Jayne White, MDRT staff Pam Brown and the committee chairperson Radhakrishna K Shetty. Then me, Ian Green

So sadly, too short a time in a wonderful city, but happily a great meeting with lovely people.

More blog posts to follow on elements of the trip including more about MDRT and how/why I am involved (and the benefits to my clients), The ‘Green’ Aspects of Business Travel and Investing in India.