adviser information evening australia october 2013 c

OPTIMUM ADVICE C L A R I T Y – S I M P L I C I T Y - A C T I O N

- The New Financial Advice Standard

Personal Experience

Market Snapshot

Optimum Advice

The Opportunity

Q&A

Close

Agenda

Why are you here?

See Financial Services as an opportunity

You’re entrepreneurial willing to back yourself

Want to make a positive contribution

Want to make a decent income

TIME – 20 week program– 4 week intensive

EFFORT – education, work, “lean in”

MONEY – Investment

1995 1996

NasdaqUSD$0.70

NasdaqUSD$901.00

20122001

1998

1849

1869

1848

What has changed?

• 150 years ago creating and selling products

• 2013 creating and selling products

• It’s all about product distribution

• So nothing really…

Deregulation mid 80’s

SIS - 1993

Financial System Inquiry [Wallis] – 1996

FSRA – 2002-2004

FOFA – 2012/13

??

Legislation & Regulation

"Cross-selling is a way to drive the value of a business up, and it's still something we as an industry do slightly poorly.”“33% of broker customers were open to at least taking on loan protection insurance from a broker and that better than three out of 10 will just say “YES” straightaway.”

“We’re keen to leverage our broker network to distribute more products, supporting our strategy to become our customers’ primary bank.”

-

Andrew Inwood – Founder & Principal - CoreData

Mark Woolnough– Head of Broker Distribution, ING Direct

THE CURRENT MODEL HAS REACHED IT’S USE BY DATE

• Based around product sales NOT client outcomes

• Doesn’t address life’s financial complexity

• Only deals with ‘what’s left over’

“We believe that everyone should have the opportunity to live a fulfilling, empowering and enriching life, free from financial worry.”

• 58% not preparing for retirement*

• They ‘risk’ living twice as long as their savings will last

• 42% aged 55-64 expect govt contribution #

* - HSBC – The 2013 Future of Retirement – Australia Report

# - ASFA – Feb 2013

The Unfortunate Reality

• Do you believe you live an extravagant lifestyle?

• How much of your current lifestyle are you prepared to sacrifice in order that you could retire?

The Relevant Questions

• Avg Annual Income - $73,944+

• Funds at retirement:*

Plan =$512k+No Plan =$112k+

• Aged Pension currently: #

$19,000 single$29,000 couple

* - HSBC – The 2013 Future of Retirement – Australia Report+ - ABS Full Time Adult AWOTE May 2013# - Dept Human Services – Sept 2013

What this means…

- $0 by 73- $0 by 67

Life shouldn’t begin with what’s left over…

“You’ve got to start with the customer experience and work back toward the technology—not the other way around”

Less stress

More wealth

Guidance – ‘how to’

What clients want…

What clients need…

Clarity

Simplicity

Action

We’ve gone right back to the beginning…

…completely re-engineered the advice process from the ground up

…to provide an elegant yet simple solution…

…that includes everything

But life is complicated…

• Too much month at the end of the money…

• Time poor - information overload

• Can’t get ahead… not sure how

• Life just gets in the way… yet again

reducing debt

investing

cashflow

travel / holidays

retirement

property

savinginsurance

structuring finance

mortgages

tax

spending

family

pensions

estate planning

Life is complicated…

• Start with the basics – understand where the money goes?

• Life shouldn’t begin with what’s left over

• Create positive emotional connection with your money

• Drive behavioural change

• Build ‘Net Asset Value' – your true worth

We create order and structure

=ADVISORY PANEL

THE CHALLENGE

• Usually reserved for HNWI and UHNWI

• They understand paying for professional services

• They buy ‘time’ with people… greater exposure to opportunity

• Expect delegation of expertise

Q - How to transfer that thinking to other sectors of the market?

Q - How to engage clients?

Q - How to make it profitable?

THE OPPORTUNITY

• The ‘middle market’ - being deserted in favour of HNWI and Ultra HNWI

• Haven’t been provided with this level of service

• In desperate need of help

• Experience dictates they can, will and do pay

The Potential Market

THE NEW ADVISER

Who are we looking for:• Authentic

• Transparent / Open

• Compassionate

• Trustworthy

• Socially responsible

Someone who can…• Engage the client

• Deliver a blueprint

• Follow the plan of action

• Help alleviate clients’ financial stress

• Become a financial ‘life coach’

7/11 Lead Qual’n Process

•11 customer contact points

•7 hours of time

Lead Sourcing Document Preparation

Client Meeting

Upfront PaymentExpert EngagementPlan Creation & Signoff

Strategy Presentation Implementation Ongoing Coaching

How does it work?

Hold the client engagement meeting

Hold the implementation meeting

Become a ‘Gifted Generalist’

What the adviser does…

Compile and manage the client file

Manage all client communication

Define & test the client strategy

All the back office admin

Write the client Strategy Document

Write all the product related Statements of Advice

What the adviser doesn’t do…

RG146 – Financial Advice

Cert IV – Mortgage Advice

Module 1 – Lead Qualification

Module 2 – Client Engagement

Business in a Box

Business Tools

Back Office Support

Module 3 - Finance

Module 4 - Implementation

Module 5 - Strategy Development

Lead Generation

Plan Generation & Review/Signoff

Enhanced Admin Support

Fully Qualified Authorised Rep

Ongoing Qualified Leads

Plan Signoff

Continuing Professional Development

Advisory Panel

Comprehensive Admin Support

‘TELL’1ST MONTH‘SHOW’3

MONTHS‘DO’ONGOING

The Optimum Advice Program

Expected Adviser Income

REVENUE

Month 1 classroom $0

Month 2 L-Plates $4,000

Month 3 Red P’s $4,000

Month 4 Green P’s $8,000

Authorised Representative $14,000

$150,000+ per annum

IRIDIUM FINANCIAL SERVICES

We are creating a new standard for financial advice which leads the market and will set a new global benchmark

Holistic, easy to understand, jargon free

Outcome/goal focused – they’re at the centre

They get a long term financial ‘coach/partner’

40 week implementation program

Ongoing ‘Coach & Mentor Meeting’

FOCUS—increase financial net worth

What The Client Gets

End-to-end business process & IP

‘Business In A Box’

Comprehensive Training & Education

Ongoing Coaching & Mentoring

Continued Professional Development

Peer Review program

Continually monitor, measure, refine, adjust

What The Adviser Gets

Optimum Advice is a fundamental and profound shift in the philosophy, methodology and detailed process of providing financial advice that has client outcomes as its core guiding principle.

Time to create a point of D I F F E R E N C E

Always with the focus on the client outcome

“Innovation distinguishes between a leader and a follower”

Do you want to lead or follow?

www.iridiumfs.com.au

discovery@iridiumfs.com.au

02 8188 1968

@iridiumfs

Iridium Financial Services

iridiumfs

OPTIMUM ADVICE E N G A G E – A D V I S E – I M P L E M E N T

- The New Financial Advice Standard