BR Guide FINAL 20 Feb

78 WORKING WITH PROFESSIONAL CONNECTIONS Alternative Business Structure (ABS): This is the new structure engendered by the Legal Services Act that allows non- lawyers to participate in owning and/ or managing law/accountancy firms. An ABS is complicated and expensive to set up and requires regulatory authorisation. The approval process involves applying to the SRA which will need to be convinced that the ABS, among other things, will comply with the requirements relating to professional indemnity insurance and the compensation fund, compliance officers have been appointed and all authorised role holders are worthy of approval (criminal offences, regulatory record and CCJs are taken into account). The SRA will then decide whether to issue a licence, which can take six months, and the application form is well over 100 pages long. The licensing process alone costs several thousand pounds (depending on the size of the company), before taking into account any legal advice or other time/ assistance used. The majority of ABSs are new limited companies and LLPs. The key to a successful relationship is for the IFA to complement the solicitor’s advice. IAN MUIRHEAD SIFA CHANGES FIRMS HAVE MADE AS A RESULT OF HAVING AN ABS LICENCE SOURCE: SOLICITORS REGULATION AUTHORITY, 2014 I see benefits to both accountants and financial advisers in working together to give their clients the best possible advice. The combined knowledge of accountancy and financial services professionals can improve both the quality of the advice and the trust the client places in the process. ALAN HIND ICAEW 42% 46% 50% 77% 83% 88% 96% 100% Expanded range of legal services Offered multi-disciplinary services to clients Aided succession planning Boosted market profile Employed non-lawyers in management Improved tax efficiency Promoted new non-lawyer/s in management Entered the legal services market Clients are looking for quality assured advice they can trust and a financial adviser aware of the wider options available to address their clients’ objectives. When it comes to later life advice, well-constructed estate planning and succession arrangements are increasingly important to the growing number falling into the IHT net; figures from the Office for Budget Responsibility show a 30% jump in the number of estates liable to IHT between 2014/15 and 2016/17. Finding the right adviser at the right time is key. Later life advisers work successfully with other professionals such as lawyers and accountants who often identify estate planning needs with their own clients that can only be addressed by working alongside a regulated financial adviser. Legal firms in particular often look to provide a seamless proposition that includes accessing advice which falls outside their own expertise and regulatory remit. This interdependent nature of planning for both individual and business clients creates opportunities to build professional relationships and offer joined-up services. The ever-growing need for later life financial advice means those advisers who understand the complexities of this type of planning are ideally placed to develop their financial planning practice. The business opportunities for these advisers possessing this expertise and knowledge mean they can offer a wide-ranging advice service for their own clients as well as bespoke financial advice to the clients of other professionals. All great business relationships thrive because they have a mutually beneficial plan in place. GRAEME BALLANTYNE PRUDENTIAL Closing Statement TISH HANIFAN - JANE FINNERTY JOINT CHAIR OF THE SOCIETY OF LATER LIFE ADVISERS (SOLLA)