A blog for advisers only: Neil’s story

We first ran this article July 22^nd 2015 and because it proved so popular amongst the adviser community, we thought it would be a good idea to run it again. Enjoy!

After a 20-year journey through financial services that began with restricted insurance companies and progressed through restrictive networks, I took the decision to become fully independent and directly authorised in January 2013.

With independence came full accountability and responsibility, and as a one-person company who had used platforms for over ten years, this was a liberating time even if RDR was looming large. Moving from commission to fees was not a problem but as an investment specialist, I knew what I wanted but couldn’t find it.

Over the years I had worked with large company investment panels and investment committees who always took a lead about what an investment portfolio should look like and ‘buy and hold for forever’ was the strategy, where an average return of 5 to 6% per year was considered acceptable. 

It was suggested that I place my clients with Multi-Managers, DFMs or corporate Model Portfolios but for me as an investment specialist, I felt that I was selling out and becoming in effect, an introducer and one who couldn’t justify my ongoing service fee to clients.

Moreover, it seemed as if having accumulated clients who had entrusted themselves and their personal details to me, I was now passing them all over to another party who did not have their same interests at heart. In addition, another hefty fee was being introduced and since I wouldn’t be doing the trades, VAT was also an issue. And what about the past performance of these companies? When I asked, I was told that every client was different and therefore no information was available! When I enquired about the amount of ‘invisible’ fees being charged, say for instance trading fees, once more I was told that it was not possible to be explicit.

After a lot of searching and still looking for an alternative way, I came across Stephen Sutherland, Chief Investment Strategist at FCA-approved ISACO whose only target market had been private clients, of which I had been one at first hand with my own money.

When I asked him for past performance, he was able to give me independently verified records that went back as far as 1997 and I was pleased with what I saw, especially as he had achieved outperformance without compromising client risk.

I suggested to Stephen that we could work together in another way, he as investment researcher and me in an IFA capacity.

Whilst Stephen would continue to monitor the markets 24/7, select funds for use after due diligence and supply data on a daily basis, I would apply this research to my own investment portfolios. In other words, Stephen would supply this information without ever knowing my clients or being in any way involved with them.

I was now where I wanted to be.

A small IFA company:

• Where I would not have to pass my clients and all their details out to others.
   
• Where I would continue to have full responsibility and accountability for decision-making and management of investment portfolios.
   
• Where I would make all the trades myself on platforms and ‘buy and hold’ funds for as long as they were worth holding, not otherwise.
   
• Where fund switching when necessary could be done quickly and compliantly.
              
• Where VAT is not an issue.
   
• Where I can more than justify my ongoing fees.
   
• And above all, where clients are more than satisfied with my new investment proposition that is not only innovative but most importantly one with which they are more than happy, so much so that referrals have increased without effort.

Neil Sutherland¹

Independent Financial Adviser – Director

Sutherland IFA Limited

FCA Number: 587707

W – www.sutherlandifa.com  

T – 01794 884 913

¹Neil Sutherland is no relation to Stephen or Paul Sutherland.

As always, if you have any questions or thoughts on the points covered in this post, please leave a comment below or connect with us @ISACO_ on Twitter.
 

About ISACO

ISACO provides an outsourced investment solution that offers low cost and high levels of personal service.

‘ISACO Alpha’ is a premium fund research service, offering a close personal relationship², low fees and a clear goal of delivering consistently good risk-adjusted returns for your clients. Our aim is to make your life easier and free up your time to focus on what you do best: developing client relationships, building your brand and growing your business.

We are known as a specialist in ISA and SIPP Investment and together with our clients have an estimated £75 million actively invested³. We are a small, warm and friendly investment company that was started back in 2001 by brothers Stephen and Paul Sutherland.

Stephen, a bestselling investment author and Paul are known as two extremely likeable, down to earth individuals who both live in Manchester. We are authorised and regulated by the Financial Conduct Authority (FCA). ISACO’s FCA firm reference number is 525147.

²ISACO’s relationship is with the adviser only. ISACO does not have a direct relationship with the adviser’s clients.
³Internal estimation taken January 1st 2015 of total ISA and pension assets owned by the ISACO Investment Team and ISACO premium clients.