January 2003

FINANCIAL PLANNING TO TAKE CENTRE STAGE

Acumen Accountants and Advisors has launched a new company dedicated to Financial Planning. Headed by directors Sandy Robertson and James Smith, Acumen Financial Planning (AFP) has also embarked on a drive to raise professional standards and qualifications in the North East of Scotland.

Sandy and James are the only two advisors in the whole of Scotland to have successfully completed the Institute of Financial Planning (IFP) Fellowship Examinations and Sandy also holds the internationally acclaimed Certified Financial Planner licence. The next stage of AFP’s professional development is to have their financial planners progress through the Advanced Financial Planning Certificate examinations set by the Chartered Insurance Institute and then the advanced IFP exams.

A graduate interested in becoming a professional financial planner has recently joined AFP and he will be encouraged to take high level qualifications with the assistance of the firm. Sandy Robertson said: "Acumen Accountants has recruited graduates for many years for its accountancy business and supported them with their professional qualifications throughout their careers. Our financial planning business is adopting the same philosophy and we aim to produce and retain some top quality planning professionals.

"Advice from so called ‘independent’ financial advisors has been under scrutiny for some time. The City watchdog, the Financial Services Authority (FSA), had proposals which focussed on the word ‘independent’. It initially proposed that only those advisors who charged fees would be able to use the ‘independent’ label. However the insurance industry, fearing for its sales figures, lobbied and the FSA has back-tracked and suggested a ‘menu’ approach that allows advisors to offer clients a choice of fees or commission as a means of paying for advice. Acumen has offered professional financial planning since 1998, but now feels that the time is ripe to launch its separate, dedicated company. AFP will operate primarily on a fee-based approach, so that clients can be sure of getting advice that is in their interests and not ours."

IFP Chief Executive Nick Cann said: "I am delighted that Acumen has launched a separate financial planning company. Too few advisers today are qualified to the highest standards and offer the client a way of paying for advice that is completely impartial. It’s not just a question of fees versus commission, although that is part of the equation, it is more a question of ethics, technical skill and qualified planners acting with a duty of care in their dealings with clients."

Sandy Robertson added: "People have certain expectations in their personal and professional lives, such as buying a second property, saving for children’s education or planning for retirement, and money can serve to meet these. The planning process involves setting life goals, gathering relevant financial details, assessing current financial status and coming up with a plan to meet these goals. A financial plan is an active document that is flexible enough to react to changing circumstances and requirements."

Recognising the dearth of financial planners in Scotland and the North East in particular, Sandy Robertson goes on to say: "Whilst there is plenty room in Scotland for quality financial planners, there is a surprising lack of interest amongst existing financial advisors – independent or otherwise. I have been a regular at IFP conferences and Scottish Branch meetings and have been surprised to find that over the past six years Acumen has been the only North East firm to be represented at any of these. We believe other advisors in our area should embrace the opportunity that the IFP offers and take more positive action. We have made a commitment to the Institute via the Scottish Branch to hold regular meetings in Aberdeen so that those interested in the Institute and all that it stands for have a forum to meet on a regular basis."