Journal :: 1st June 2005 Threat or Opportunity

Published: February 9, 2005
Author: Paul Cadde
Category: Back Office
Permalink: 1st June 2005 Threat or Opportunity

Biggest Threat to our Profession in 20 Years

In 16 weeks there will be a monumental change in our industry. The biggest change in over 20 years.

Before I explain, let me just tell you a story.

I have decided I want to buy a new car. I look through your dealership window and fall in love with the beautiful ?C Class? Mercedes on display.

?How much is that lovely car?? I ask.

?Well?, you say, ?if you buy it from me it is ?24,000. But just before you decide, I have to tell you that the average price, across all dealers in the country, is ?23,000.?

?Why is that then?? I ask.

?Uuuh ?. Ummm ?. Uuuh ?. Ummm?

This story may sound absolutely ridiculous, but this is exactly what is going to happen in our industry on 1st June this year.

As I am sure you know, come 1st June you will need to hand your client an Initial Disclosure Document before doing business. And in the document you will show the commission you will be taking compared with the market average. A market average which seems, mysteriously, to be lower than the commission currently being taken by most commission-charging IFAs.

If you have any doubts at all about the danger you are in from this Initial Disclosure Document, have a read of a sample document on the FSA website. Go to http://www.fsa.gov.uk/disclosure/cob_menu.doc.

For a large number of IFAs this change will constitute a massive threat. Large numbers, probably thousands, will be forced to leave the industry. Many more will see already slim margins squeezed so tight they will wonder why they ever joined it.

For some IFAs, including those on our programmes, this change will constitute an enormous opportunity. An opportunity to take on even more clients. An opportunity to increase substantially the profit they make from each client.

Which group will you be joining? Those exploiting the opportunity or those suffering from the threat?

Whichever group you join, you will have to make some significant changes to your business in the next few months. Why not join the hundreds of IFAs who have already benefited from the changes we can help them make in their businesses? We are the leaders in the field of business change in this rapidly changing industry, and perfectly positioned to help you avoid the threat and maximize the opportunity.

Book your place now on our special two-day programme ?The IDD Breakthrough? before your competitors completely fill the days. On these days you will learn how to use this potentially ruinous new legislation to catapult your business into a very exciting and profitable new era.

WARWICK Day One-10th March Day Two-20th April
GUILDFORD Day One-24th March Day Two-21st April
LEEDS Day One-31st March Day Two-28th April

You cannot prevaricate on this. If you delay making changes you are deciding you are in the ?threat box? not the ?opportunity box?. Start making the changes you need to now. And begin by ringing us on 023 8089 2222

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About Paul Cadde

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