Quarter ending 31st March 2012 We are happy to report some excellent results for SPS this quarter, as a result of general improvements in market conditions. Our unique SPS system provides automated quarterly reviews for clients with investments in pensions, unit trusts and ISAs. All 10 risk-graded funds showed positive increases, ranging from +4.47% for Risk [...]
We have been advising clients on Pensions & Divorce and wider Financial matters for many years now, and have developed a wide range of knowledge & experience in this area. In the majority of cases one party is generally more financially astute than the other and, for many, this may be the first time that [...]
Halifax have today announced that they are increasing their standard variable rate from 3.5% to 3.99% on 1st May this year. This surprise move will mean a customer with a £150,000 interest only mortgage will be £61 per month, or £735 per year worse off following these changes. With other lenders offering tracker rates from [...]
Recent figures from Safe Home Income Protection (SHIP) show that the number of Equity release cases taken out in the final quarter of 2011 were up 15% based on the same period for 2010. With pressure on people’s pensions, poor returns from annuities and cost of living ever increasing it’s not hard to see why. [...]
Quarter ending 31st March 2012
We are happy to report some excellent results for SPS this quarter, as a result of general improvements in market conditions.
Our unique SPS system provides automated quarterly reviews for clients with investments in pensions, unit trusts and ISAs. All 10 risk-graded funds showed positive increases, ranging from +4.47% for Risk Level 3 (Cautious) to +9.03% for Risk Level 10 (Highly Speculative).
Most of the gains have come via our holdings in international funds, notably Far East, Emerging Markets and the US, supporting our view that it is these areas that will provide the recovery in the markets this year.
In our view the outlook is positive, but there will be periods of volatility, and we see these periods as buying opportunities.
Iain Halket – Chairman, Investment Committee
We have been advising clients on Pensions & Divorce and wider Financial matters for many years now, and have developed a wide range of knowledge & experience in this area.
In the majority of cases one party is generally more financially astute than the other and, for many, this may be the first time that they have had to deal with complex financial matters, exacerbated by all the emotions of a divorce.
Our approach to dealing with our divorcing clients is to relieve them of this financial stress. The fact that we have advised many clients in this position gives them confidence that we know what we are doing, one less thing for them to worry about! Belinda Ray, our Resolution accredited specialist often attends client meetings and her expertise in producing Joint Expert Reports tends to set us apart from other advisory firms in this area.
Investment Advice & Risk
When dealing with a Pension Sharing Order where one party is to receive a transfer of the other’s pension, one of the main areas we focus on is the level of risk that is suitable for them. A lot of time is spent making sure that they understand risk and how this can impact on the performance of their new pension. Other issues, such as which
pensions company is best, and the technicalities of the transfer are of course
important, but the main focus of the client should be to fully understand risk
and be comfortable going forwards.
We operate a range of 10 investment portfolios that are risk graded, and these portfolios are managed on a quarterly basis, making sure the client’s funds are monitored 4 times a year, we find that clients really appreciate this “hands on” approach. They also have the ability to move up or down the risk scale if their outlook changes.
Other Financial Advice
In some cases additional advice is necessary, covering areas such as Savings & Investment, Maintenance Protection, Mortgages, Inheritance Tax issues and advice of related Taxation issues. We always advise our clients to update their wills and consider a Lasting Power of Attorney.
Rod Milne
21 March 2012
Halifax have today announced that they are increasing their standard variable rate from 3.5% to 3.99% on 1st May this year.
This surprise move will mean a customer with a £150,000 interest only mortgage will be £61 per month, or £735 per year worse off following these changes.
With other lenders offering tracker rates from 2.6% and fixed rates from 3.09% it might be worthwhile seeing if you should remortgage elsewhere.
If you would like to find out more feel free to contact Luke Ashton on 01483 468878 or email luke.ashton@hfsmilbourne.co.uk
Recent figures from Safe Home Income Protection (SHIP) show that the number of Equity release cases taken out in the final quarter of 2011 were up 15% based on the same period for 2010. With pressure on people’s pensions, poor returns from annuities and cost of living ever increasing it’s not hard to see why.
People are looking for other ways of getting a bit of extra income to help them during retirement and Equity release is proving to be a very popular way of helping. In basic terms Equity Release is a way of releasing money from your home whilst still being able to live in the property. People decide to release money for a number of reasons such as helping with the cost of living, to pay for some home improvements, helping other family members onto the property ladder, to pay for that holiday you always wanted or, to put it another way, for any reason you want. For example, you can actually release up to 65% of the value of your home this way, and this can have a significant effect on your quality of living going forward
There are several different ways of releasing money from your property all have their advantages and disadvantages. It is important to speak with someone suitably qualified to find out if equity release is right for you.
If you would like to find out more feel free to contact Luke Ashton at HFS Milbourne on 01483 468 878 or email luke.ashton@hfsmilbourne.co.uk
Is your business ready for Workplace Pension Reform?
HFS Milbourne and TWM Solicitors are co-hosting a free breakfast seminar aimed at
helping local business owners and HR managers gear up for the new Workplace
Pension Reforms which come into effect for many companies in 2012.
The event, which takes place on Thursday 2 February 2012 from 8.30 to 9.45 am at TWM offices in Woodbridge Road, Guildford will provide a step by step guide to what employers should be doing now to ensure they comply with the legislation. There will be an opportunity to speak to the experts in a Q & A session at the end of the seminar.
From 2012 employers will be legally required to enrol eligible workers into a qualifying pension scheme without any active decision on the employee’s part. The rules apply to employees aged between 22 and state pension age that earn above the income tax personal allowance of £7,475 in 2011/12.
Employers can choose to use the pension scheme they already have in place but it must meet minimum standards in respect of the benefits it provides and the amount of contributions paid to it.
The reforms will be introduced gradually over the next four years with larger employers having to comply with the law from October 2012. Other employers will have to follow suit during 2013-2016.
“Although the legislation is aimed at encouraging people to save for their future retirement it has not been popular with many SMEs who see it as just another financial burden”, says Iain Halket, Director at HFS Milbourne.
Clare Chappell, senior associate in employment law at TWM will consider the employment law implications of the workplace pension reforms and advise on what employers need to do to become compliant. “The reforms are yet another addition to the wealth of employment related legislation and employers need to get ready to
effect the changes”, says Clare. “Although it feels like there is plenty of time before they actually need to enrol their staff in a compliant pension scheme, businesses need to understand the changes and begin preparing now, to ensure that they don’t run
into difficulties and claims later on.”
Clare will be covering the employment law background to the new regime, explaining which staff will be caught and what you need to do from an employment law perspective.
Iain will provide an overview of the new system including the most recent updates to the rules which were announced by pension minister Steven Webb as recently as last month. In November, the government confirmed that automatic enrolment will begin on time in 2012 as planned. “Small business owners cannot become complacent about the changes – doing nothing is just not an option”, says Iain. “The full implication of the Reforms need to be taken into account and advance planning and budgeting is essential. As an initial action we would recommend that any existing employee pension scheme is assessed to see if it meets the minimum requirements of the Reforms.”
Iain Halket - Director HFS Milbourne
To reserve a seat at the seminar, please email guildford.reception@twmsolicitors.com
or call 01483 752700.
Media
contact: Jane Newick,
The Wordbox, tel 01483 562244/07907 566773, jane@thewordbox.com
Last month we celebrated 25 years in business with a drinks reception in our smart new offices at Wonersh House, The Guildway, Guildford.
Over fifty guests enjoyed an evening of fine wine and canapés and those who were brave enough to sit for the caricaturist went home with a little souvenir of the evening.
We are delighted to report that Sonal Shah has been promoted to finance director with immediate effect.
Since joining HFS Milbourne as an accounts assistant ten years ago, Sonal has broadened her skill base and commercial awareness through professional study and specific management training.
Sonal Shah flying high
“The future for the business is very bright and I am pleased to have the opportunity of joining the Board as the Company now embarks on its new journey of expansion”, says Sonal.
We are already beginning to see how the Legal Services Act will impact the way in which solicitor services are delivered in England and Wales.
Earlier this year, we experienced the arrival of a new breed of legal service providers operating within the retail environment. QualitySolicitors in WH Smiths, Lawyers2you and other branded services entered the market offering solutions to the sort of ‘low priority’ legal issues that people often ‘don’t quite get round to’ sorting out.
According to Steve Richards, chairman of QualitySolictors the vision is to “create the Specsavers of the legal world.” In its bid to become the UK’s dominant brand for individual and SME legal services, the company has just announced plans to increase the number of outlets five fold to over 1000 by the end of next year, with a £10m marketing programme to support the roll out kicking off in Jan 2012.
It’s not just QualitySolicitors who has stolen a march on the market. The Co-op has dipped its toe in the water to see how legal services could be delivered through 350 branches of Britannia and the Co—Operative Bank. Following the success of its initial pilot scheme, there are plans for further expansions as the Co-op gears up to capitalise on the opening up of the legal services market.
With all the focus on the Legal Services Act, it is easy to overlook another innovation which is about to enter the UK market Rocket Lawyers (backed by the venture capital arm of Google) and Legal Zoom, the successful US based legal document service providers will set up shop here next year. We will have to wait and see what impact that has on the market.
“It is important to recognise that the legal landscape is changing and to consider how this may impact your business. The point is that these new operators are heavily resourced and well funded and will be up and running and ready to do business very soon – possibly in your patch!” says Rod Milne, joint Managing Director, HFS Milbourne.
Given all the changes afoot, now is an excellent time to move marketing up the agenda as it is vital to have a game plan in place to protect your business from this new competition.
Perceptions of how, where and when consumers can access legal services are changing. “Your current, past and future clients will be bombarded with much easier ways to access the legal services they require and as a business you may come under increasing pressure to convince them that you are still the best option”, says Rod.
Many legal firms already have marketing personnel operating at partner level and as such tend to have quite sophisticated integrated marketing campaigns in place to build and maintain market share. This type of business is well placed to maximise the opportunities that will undoubtedly unfold in the months ahead.
“However, there is an upside to all this”, says Rod. Under the new Alternative Business Structure, lawyers will be able to work in multi-disciplinary practices offering financial, legal and other advice, or be based at different kinds of businesses. “Law firms may attract outside investment and explore new markets and this will bring with it many prospects for growth.”
For example, lawyers have a golden opportunity to manage all their clients’ affairs by positioning themselves as ‘trusted advisors’. For this to work, the legal firm needs to establish relationships with trusted professionals from other disciplines who can enhance their service offering. Business can be passed through a referral system or via a joint venture, the latter being the most attractive as it allows the solicitor to take a dividend without the costs of dual regulation.
“From our experience, joint ventures are an excellent way of generating additional revenue. It is rather like having a brand ambassador working for you in the field and providing you choose your professional partners wisely it is a win win situation”, says Rod. HFS Milbourne operates joint ventures with accountancy firms HFS Hamlyns and HFS Felton Pumphrey and provides advisory services for overseas businesses setting up, re-locating, investing or expanding in to the UK through HFS Goodwille. “We decided to partner with these businesses as they provide a ‘good fit’ with our client base, sharing a similar demographic profile and commercial goals. We set out terms of business and timescales and both sides have an obligation to make the arrangement work”, explains Rod.
“It is easy for lawyers to become over reliant on single transactions which means there is no obligation for that client to come back when they next require legal advice. “However we have built our business model on ongoing client review and this is something which our partner firms really appreciate”, says Rod. To help increase our ‘stickiness’, we launched a new investment management product, our Strategic Portfolio Service. In addition to providing more proactive management, we maintain contact with clients on a regular basis through quarterly investment reviews. Building regular two way dialogue helps us and our joint venture partners get closer to our customers who feel ‘looked after’ which in turn increases brand loyalty”, explains Rod.
Change can be a good thing. There are fantastic opportunities on the horizon for the commercially astute legal teams who have the insight to plan ahead and start building now for future success.
Rod Milne says “ Lawyers need to consider how the changing legal landscape will affect their business"
New rules affecting public sector pensions
Family lawyers need to be aware of new rules for calculating Cash Equivalent Transfer Values (CETVs) payable under public sector pension schemes.
On 26 October 2011 HM Treasury released a Guidance Document that requires all Public Sector schemes to use a different discount rate for determining Cash Equivalent Transfer Values with immediate effect.
Public sector schemes have responded to this Guidance by suspending CETV calculations whilst the changes are incorporated into their systems and processes.
Implementation of Pension Sharing Orders (PSOs) have also been suspended through the transitional period.
As a result, any divorce settlement involving a pension sharing order applied to a public sector scheme, either already agreed/instructed by the Court but not yet implemented, or where data gathering and/or production of an actuarial report is in hand, cannot now be completed until revised CETVs are available from the relevant pension schemes.
Next steps
Early indications are that the production of CETV calculations and implementation of PSOs will not resume for some months. Past experience of similar changes suggests that each scheme will then need to go through a process of creating, testing and implementation of the required system changes.
Impact on previously calculated CETVs
The revised rules do mean that any previously calculated CETV is now out of date. Although there will be a delay in obtaining new CETVs and implementing pension sharing orders, the impact will vary from case to case.
Recommendations for action
Any situation where the agreed or pending divorce settlement involving a pension sharing order to a public sector pension scheme should now be reviewed to determine whether the parties wish to have completion of the settlement put on hold until revised CETVs are again available, or whether alternative approaches should now be considered. These could involve the application of pension sharing orders to other pensions and/or a change to a full or partial offset approach.
A particular point to bear in mind here is that if it is decided to wait until CETVs are again available, the changes to the CETV basis could be such that it would then be necessary to commission a further report to verify that the original pension sharing order(s) recommended remain valid or to determine what changes would then be appropriate.
NB: Only public sector pension schemes are affected, this valuation basis change has no impact on private sector pensions or state pensions.
