Welcome to IFAP's first Update newsletter of the New Year. As ever it aims to keep you in touch with IFAP's recent initiatives and to fill you in on our plans for the months ahead. It looks like 2005 is going to be another productive year for IFAP , and one which we believe will deliver huge benefit to our members.
Sponsor news
We're delighted to confirm that three more product provider sponsors have decided to support IFAP's ongoing campaign to promote the sector.
Southern Pacific Mortgage Limited (SPML) signed up to sponsor IFAP in December. As you will be aware, SPML is one of the UK's fastest growing specialist mortgage lenders, providing mortgage finance to meet the circumstances of a wide variety of customers, ranging from near prime to non-conforming, buy-to-let and right-to-buy.
DWS Investments, the retail asset management
division of Deutsche Bank, also gave IFAP its financial backing in December. Founded in 1956, DWS Investments is an established and well-known brand on the continent, and has a number one position in Germany with a market share of 25%.
Lastly, the international arm of Scottish Life announced its support for IFAP in January. Scottish Life International markets a range of capital-protected investment and life assurance products and to date, has achieved funds under management in excess of £550 million.
Until recently, some industry pundits were predicting a decline in support for the IFA sector. We're delighted to report that the reverse appears to be true. IFAP is now sponsored by 31 companies, spanning the life and pensions, mutual fund, mortgage and technology sectors.
IFA Promotion news
'D-Day' and beyond
Since the last edition of Update and with the advent of depolarisation, financial advice has seen its biggest shake-up in over 16 years. And following 12 months of intensive behind the scenes preparation, allowing us to enhance IFAP's member database infrastructure and make sure we had all our marketing material in place, IFAP's been able to go out all guns blazing in the run-up to and post 'D-Day'.
As you may remember, IFAP's 'Be Advised' campaign for independent financial advice is rooted in one simple principle: if we can explain the different types of financial advice to consumers, and educate them as to what questions to consider, then taking the IFA route will prove to be the preference of the majority. In other words, the biggest threat to the IFA sector is consumer confusion about the type of advice they are taking.
With this in mind, we've rolled out an integrated consumer marketing campaign, capitalising on the media interest surrounding the changes to financial advice.
As part of this, we commissioned fresh copy for our new consumer guide to financial advice, as well as creating a dedicated Be Advised campaign microsite. The site, which you can visit at www.unbiased.co.uk/beadvised , contains educational material regarding the new types of advice, as well as the payment methods which each must offer, and – of course – the specific benefits of independent advice. The site also contains an interactive decision tree, which objectively guides consumers through the questions they should be asking to help them identify the right type of advice for them.
IFAP has conducted a series of media briefings in the run up to, and immediately following 'D-Day', explaining our views on the changes, and to highlight IFAP's new consumer education material. From these briefings we've secured a number of editorial opportunities, through December and January, including BBC News Online, the Daily Telegraph, and a wide range of regional newspapers.
IFAP also issued press release comment in advance of 'D-Day' which was covered in almost all national, regional and online articles on depolarisation, as well as setting up a string of national broadcast interviews for Media Services IFAs, from BBC Working Lunch to Sky News to Channel 4.
In national newspapers, IFAP placed a number of brand advertisements, highlighting the IFA roundel and explaining what consumers should be looking out for. At the same time - as you already know - IFAP created and distributed free depolarisation posters to all its members
You can see a colour example of IFAP's A2 depolarisation poster in this Update – we still have several thousand available on a first come first served basis. So to get FREE supplies of this poster to display in your office, just call the member Hotline on 0870 325 9020.
Going forward, making sure people know you're closely associated with the blue IFA roundel will be crucial if you're to successfully differentiate what you offer from other adviser types. So I strongly urge all of you to make as much use of IFAP's branded merchandise as you can (it's offered at cost price, we make no profit on member merchandise) - from logos to posters to consumer brochures, all featuring the blue IFA roundel and explaining the unique benefits of independent financial advice. A flyer detailing our current range of merchandise is enclosed with this Update – you can order supplies via the member section of www.unbiased.co.uk or by calling the member Hotline on 0870 325 9020.
And I know I've said this before, but I'll say it again. Why wouldn't any of you display the IFA roundel on the home page of your website, when you can easily download either blue or black versions of the IFA roundel for FREE from www.unbiased.co.uk ?
Financial Mail on Sunday guide
IFAP has been working closely with the Financial Mail on Sunday team over the past three months to develop a co-branded guide to financial advice. This new guide was launched in the Financial Mail, the UK 's most popular national newspaper personal finance section, early in January with a major feature on the depolarisation changes. The guide will be advertised and supported by further editorial in the newspaper through to the end of May.
Having such a well-respected and high-profile consumer publication firmly on the side of independent financial advice can only be good for the sector, and we're encouraged to see the majority of other national personal finance editors are demonstrating their support by continuing to quote IFAs almost exclusively in their copy, which suggests we're going to be keeping our Media Services IFAs busy over the coming months .
Status declaration form
For those of you yet to return your Status Declaration form (if in doubt about this, call the member Hotline on 0870 325 9020 and check) you will find a fresh copy attached to the letter enclosed with this newsletter. This form asks you to declare your independent status across investment, insurance and mortgage products, to enable us to clarify your listing on our database and ensure we continue only to recommend truly independent and unbiased advisers to our consumer and business enquirers.
Please take a moment to tick the relevant boxes confirming in which areas your firm offers independent advice, and return this form to us straight away. Remember, you must have at least one 'independent investment' adviser based at the branch registered with us to continue to be eligible for IFAP membership - you must let us know immediately if this is no longer the case .
I'm pleased to report (following our regular liaison with the FSA) that the vast majority of our members appear to have arranged the necessary permissions in time for the January 14 'GI' deadline. As with mortgage regulation, this has put IFAs in an extremely strong position versus the rest of the broker market, and we're making clear to the media that the gold standard of mortgage or insurance advice is only available from an IFA - the only type of adviser able to guarantee whole market access across all product types.
IFAP 's new Online Marketing Package
If you haven't already subscribed to IFAP's Online Marketing Package the chances are you haven't contributed anything to IFAP's campaign funds since you paid your one-off joining fee. For the vast majority of member IFAs, this means IFAP's received no income from you since it stopped collecting annual subscriptions in September 1997.
And yet, on your behalf, IFAP continues to ensure that as many people as possible understand the benefits of receiving 'independent' advice, recognize the blue IFA roundel and have easy access to services which help them find the right member IFA.
Since August 2004, over 1,200 members have subscribed to IFAP's Online Marketing Package. Their subscriptions, together with our existing sponsor's funding, are crucial in assisting us in our mission to make the 'independent' brand seen and heard. But in a depolarised world, we need as many members as possible to help make IFAs unique advice proposition stand out - in what is an increasingly competitive environment.
For example, for every Online Marketing Package subscription we receive, IFAP is able to either buy a single additional advertisement in the national press or (through search engine optimisation) attract an additional 200 enquirers to our online 'Find an IFA' search.
If you haven't yet taken advantage of this opportunity to make your firm's offering stand out to enquiring consumers and businesses online, IFAP's member Hotline team will be glad to talk you through what you get for your 80p a day subscription, or answer any other questions you may have; you can reach them on 0870 325 9020.
IFAP continues to be a not-for-profit organisation, and we are channeling additional revenue generated by these subscriptions into our integrated marketing programme to support member IFAs' unique offering in a depolarised marketplace. And this activity directly benefits you all .
PR campaign round-up
TaxAction 2004 is no more...
Since the last edition of Update, we've drawn last year's TaxAction campaign to a close with the issuing of three final stories, based on our annual research report.
IFAP revealed in October that lack of inheritance tax planning, including making a will, would lead to £1.2 billion in unnecessary death duty this year.
This was followed up in November by an investigation of how much more taxpayers could be giving to charities by doing so tax-efficiently, estimated at £359 million.
Finally at the beginning of this year, we highlighted the £412 million which self-assessed taxpayers were set to shell out in fines for late self-assessment tax returns, errors and unpaid tax from previous years. As with previous years, our stories encouraged people to see an IFA to ensure they are being as tax efficient as they can be, and to straighten out their financial records.
All of these press releases, along with other material from the TaxAction 2004 campaign are still available online in IFAP's Media Centre on www.unbiased.co.uk , or on the TaxAction campaign microsite at www.taketaxaction.co.uk
...Long live TaxAction 2005!
At the beginning of March, with a month to go to tax year end, we'll be launching TaxAction 2005. Building on the growing success of recent years, IFAP will be highlighting still more areas where consumers could be more tax-efficient with the help of an IFA.
As well as the headline wasted tax story and monthly follow up angles, this year's campaign will latch onto some tax themes around the imminent General Election. IFAP will be highlighting how much tax people pay in their lifetime, and how much of this is unnecessary. As with last year, we'll also be investigating which areas of personal taxation people most resent.
Please look out for further information from us, and ways you can get involved and benefit your firm directly, around the time of campaign launch.
New Year's Resolutions
In December IFAP ran its regional-focused campaign about people's good intentions for the new year, specifically pulling out how many people intended to get their finances back on track in 2005.
The survey-based story has picked up strong coverage in regional papers as well as national media interest around the turn of the year.
At the end of January IFAP issued a follow-up press release announcing how many people will have seen their financial and other resolutions fall by the wayside, based on previous years' experiences. This presented a further opportunity to explain the benefits of seeing an IFA to create a sustainable, long-term personal finance strategy.
Get Saving! 2005
As email-enabled members will be aware, IFAP launched its third annual Get Saving! campaign on 19 January. The report upon which the campaign is based is IFAP's widest-ranging yet, examining the trends, behaviours and attitudes underpinning the recent boom in spending and borrowing, and the lack of long-term saving provision.
Launch coverage of the campaign has been our strongest yet. As well as prominent articles in national newspapers, including the Daily Mail and Express, we have focused on high-audience national and regional TV and radio, and the increasingly important online arena. Indeed leading UK internet portals, Yahoo! and MSN have both created interactive pages dedicated to our campaign, enabling people to budget online, find out more about their saving options, and click through for details of local IFAs.
We are now following up with a series of additional story angles from the Get Saving! report to ensure that over the next 12 months we keep the issue of long-term saving provision and the need for independent advice high on the media agenda.
Visit the campaign microsite at www.unbiased.co.uk/getsaving to find out more about the campaign.
IFAP Media Services
Since the Christmas and New Year break, we've seen journalist demand for Media Services return with renewed vigour. Writers, producers and presenters from across the spectrum of financial and consumer publications have been getting in touch for expert independent comment or client case studies, providing everything from new online money makeover panels to IFA product recommendations in the national press.
We expect 2005 to be far and away IFAP's 200 plus Media Services IFAs busiest year yet. This is a free, added value member opportunity, so if you're willing to commit the time to raise your own firm's positive profile, as well as that of independent financial advice as a whole, then please sign up online at www.unbiased.co.uk under the 'Media Services' section.
Press Clubs report
News from around the country
Aberdeen : Congratulations go to this Club and its host newspaper, the Aberdeen Press & Journal, which recently won the top award at the Newspaper Society National Competition, in the 'best business feature' category. The Club continues to provide regular features to the paper and a campaign for 2005 is already underway.
Liverpool : Discussions have taken place regarding this Club's 2005 campaign with its host newspaper, The Daily Post, which is expected to be underway shortly. The Club has the added advantage of having its monthly feature appear in both the Liverpool and Welsh editions of the paper. Anyone in the surrounding area who wishes to take part in this year's campaign should contact IFAP's Regional Press Officer, James Sharp (james@ifap.org.uk).
Edinburgh : The latest quarterly supplement in the Scotsman appeared at the end of 2004 and was considered by the Club's members to be the best yet. Plans are in place for a full programme of similar 'Money Moves' sections for 2005, pending sponsorship. Several new members have joined the Club following a recent recruitment campaign conducted by IFAP .
Surrey : This Club continues to enjoy a fruitful relationship with its host newspaper, The Surrey Advertiser , which appears as a monthly feature in the main section of the newspaper and also in the special edition paper for commuters, The Rush . Opportunities exist for more members to participate in the Club and again anyone interested should contact James Sharp .
Nottingham : A full recruitment campaign was carried out in January and interested members are invited to attend a meeting specifically for them in early February. Several new ideas will be implemented in the 2005 campaign and additional help from the newspaper has been promised to ensure that readers are drawn to member articles.
Forthcoming Press Club dates .
March
22nd - Tayside & Fife – Dundee
The bottom line
As this is the first newsletter of the New Year, I can report back on IFAP's full year's lead response for 2004. At the beginning of last year we set ourselves the target of dealing with 400,000 consumer and business enquiries through our online and offline IFA searches. I hope you'll agree therefore that our final 2004 tally of dealing with over 446,000 searches represents a fantastic result for the IFA sector.
For those of you yet to subscribe to IFAP's Online Marketing Package, perhaps it's also worth noting that nearly 80% of these searches were carried out via www.unbiased.co.uk (and the 50 white label searches IFAP's running on partner websites). IFAP is now demonstrably a key player in directing good quality leads to our member's websites.
And, although it is still early in the year, as of the 28 January, IFAP had already dealt with 47,121 requests year to date from enquirers looking for local member IFAs. This is a 46% increase on the same period last year and bodes well for the year ahead. Reassuringly, it would appear that consumers continue to demand independent advice.
David Elms
Chief Executive
IFA Promotion Ltd
