Welcome to the latest edition of Update, IFAP’s regular newsletter for members and sponsors to keep you in touch with IFAP’s recent initiatives and to fill you in on our plans for the months ahead. 2005 so far has been a busy year for IFAP, perhaps not surprisingly as we enter a depolarised world. Much of our efforts for the first half of this year have focused on continuing to deliver value to our members - and ensuring consumers seeking financial advice better understand recent changes to the marketplace and continue to value the importance of independent advice.
IFAP launches new online ‘Find a Mortgage IFA’ service:
We’re pleased to announce that IFAP has launched a separate ‘Find a Mortgage IFA’ search facility at www.impartial.co.uk. Following mortgage regulation in late 2004, we’ve been working hard behind the scenes with members to collate details of what we term, ‘gold standard’ IFAs i.e. IFAs who are independent for mortgages and all other financial products, in a bid to ensure that consumers receive truly independent advice when making one of the biggest financial decisions of their lives.
Recent research commissioned by IFAP in association with YouGov which surveyed over 2,000 adults in the UK, shows that 78% of borrowers take out one or more insurance or investment products alongside a mortgage (1.4 products on average). In particular, over half (52%) of consumers take out life insurance with their mortgage, and 31% take another form of financial protection. 28% of borrowers started an investment plan alongside their mortgage in the last 5 years. Hence the importance for consumers to ensure that any additional advice they receive is also independent.
IFAP’s new online search facility lists details of over 5,000 member IFAs who list mortgages in their top eight business areas. We’ve asked each member to certify their independence regarding mortgage advice and have also checked their mortgage status with the FSA. The new site runs along similar lines to our general ‘Find an IFA’ tool on www.unbiased.co.uk and allows consumers to select the most appropriate mortgage IFA local to them, including those who specialise in the following areas:
General mortgage advice
Buy to let
First time buyers
Overseas
Re-mortgage
Right to buy
Self employed
100% mortgages
Commercial for individuals
Flexible
Refused credit
Residential
Self build
Equity release
Exactly the same as with www.unbiased.co.uk (and the 50 white label searches we’re running on partner websites), consumers can also select Mortgage IFAs by postcode, gender and by IFA qualification – selecting from six mortgage specific qualifications as well as 15 generic incremental qualifications.
Both our ‘Find an IFA’ search on www.unbiased.co.uk and ‘Find a Mortgage IFA’ search on www.impartial.co.uk will run in tandem and both services continue to be available through our freephone hotline.
Sponsor news
Record value generated for member IFAs:
A very big thank you to all IFAP’s sponsors is in order. Why? Well for the fifth year running we’ve commissioned independent research with financial services strategy consultants, Mercer Oliver Wyman to audit IFAP’s hotline and website response figures to establish the monetary value our ‘Find an IFA’ services delivered to member IFAs in 2004.
The research is based on the level of hotline and website enquiries generated, as well as an analysis of 2,968 questionnaires completed by enquirers to establish what they did subsequent to finding a member IFA through IFAP. In particular we asked if they went on to see a member IFA and what number and type of products they purchased.
We’re pleased to report that last year IFAP’s hotlines and websites generated record returns:
- IFAP generated up to £47 million in commission income for member IFAs in 2004 – up 52% on 2003. <
- IFAP generated up to £1,680m mortgage lending for member IFAs in 2004 – an increase of 14% over the preceding twelve months. <
Consumers and businesses used IFAP over 446,000 times during 2004 (80% doing so online) to get details of local IFAs, an increase of approximately one third over the previous year. The survey shows that 52% of hotline callers and 44% of online IFA searches went on to visit a member IFA, buying an average of 1.3 and 1.7 products respectively. Given that 80% of these enquiries are now received and dealt with via the web, the quality of the online numbers is particularly relevant.
Without the ongoing support we receive from our sponsors we simply couldn’t have delivered any of this. You can see Mercer Oliver Wyman’s full report by going to www.unbiased.co.uk and clicking on ‘Industry research’ in the Research area.
IFA Promotion news
Stop imposters claiming independence:
You may have seen that IFAP was recently on the front page of Money Marketing (2 June) with the headline ‘Stop IFA internet imposters’. This is an issue that IFAP has raised with the FSA and one that concerns us greatly. As part of our extensive work online, we’ve recently been monitoring companies who are bidding for ‘IFA’ related search terms online, who are not independent in any way, shape or form. These imposters are bidding on search engines such as Google, MSN, Yahoo, etc and paying to feature prominently on search results when consumers are looking for genuinely independent financial advisers.
If consumers are to be adequately protected this highly misleading practice needs to be stamped out by the FSA immediately. And research from Pew Internet & American Life Project showing that 70% of consumers now trust information returned from internet searches, underlines the urgency of this worrying situation. Regulatory bodies would not think twice about following up misleading advertising in Yellow Pages, and essentially this is the same type of behaviour. If you come across any similar activity online we’d ask you to directly let the FSA know immediately – the more vigilance on this front the better.
On a more positive note, here’s a reminder of some of the many ways we’re promoting our member IFAs online:
- White label searches - IFAP places white label versions of its online 'Find an IFA' search on around 50 high profile sites including web portals, financial trade body sites, search engines, financial product providers and newspapers such as www.msn.co.uk, www.standardlife.com, www.clericalmedical.co.uk, www.aifa.net, www.itsonline.co.uk, www.moneyobserver.co.uk, www.independent.co.uk, www.tiscali.co.uk, etc, etc.
- Search engine paid for listings - IFAP registers over 8,500 IFA finance related terms across all search engines including Google, Yahoo, Excite, Altavista, Espotting, Overture, Lycos, Ask, Hotbot and AOL. These paid for listings are highly targeted and are the only way to ensure that IFAP is at the top of the list when enquirers in your locality are researching financial matters online that are relevant to independent financial advice.
- High natural listing exposure (not sponsored links) - IFAPs websites have been optimised to ensure that all the search engines listed above pick up the IFA relevant terms in text on the site and display this as a link to enquirers searching online.
- Offline and online advertising - IFAP runs a year round campaign in the national and consumer press and on relevant websites promoting the benefits of independent financial advice to consumers and businesses.
- Offline and online PR editorial - IFAP generated over 2,000 pieces of positive editorial in national and trade publications in 2004 and these invariably contain a reference to the website and hotline ‘Find an IFA’ searches.
- Links - hundreds of websites link to www.unbiased.co.uk to enable their web visitors to access independent financial advice. This is in part because IFAP has around 9,000 IFA locations for enquirers to select from and in part because of the confidential nature of the search <
Given that the web is demonstrably taking over as the tool of choice for people looking for local independent advice, we’re currently reviewing our corporate relationships with Yellow Pages and Thompsons. Although many of you still take part in the shell ads we’ve negotiated with both of these published directories, we’re concerned that, compared to targeted online marketing such as IFAP’s Online Marketing Package, they may no longer offer the value for money they once did.
Think about it, over the last six months when you’ve been researching something, how often did you look something up on Google - compared to the number of times you used Yellow Pages? And if your behaviour has changed, is it reasonable to assume that the behaviour of your potential new clients has also changed? We’ll bring you further news of this review in our next Update newsletter.
Further online development
I’m pleased to report that we’ve been progressing development of our online white label ‘Find an IFA’ search tools. A new version is now live on Channel 4’s high profile website www.channel4.com in their money section. We’re also currently developing a version for www.citywire.co.uk which will be going live shortly. In addition, we’ve launched a new ‘Find a media Mortgage IFA’ service on www.impartial.co.uk, for journalists seeking mortgage commentary and case studies from Mortgage IFAs.
Incremental qualifications upgrade
By allowing consumers and businesses to select member IFAs by incremental qualifications, IFAP is playing a significant role in creating a positive market force encouraging more member IFAs to gain incremental qualifications.
IFAP’s database now records members holding 10,700 incremental qualifications above the benchmark minimum. This database has now been updated to take account of qualification name changes following the formation of the PFS out of the merger of SOFA and the LIA. In addition, the Pensions Management Institute qualification has been added and member IFAs can now also record individual AFPC papers they hold.
To try to make some sense of this plethora of designated initials, IFAP has recently updated its consumer facing guide to qualifications - which is prominently available as a free download on www.unbiased.co.uk (and all online white label searches) at the point where enquirers select incremental qualifications as part of their search criteria. In addition, IFAP has divided the incremental qualification options available into the following more user friendly categories: Generic – ACIB, ACIBS, ACII, AFPC, APFS, CFP, Dip PFS, FCII, FIFP, FPFS, H15, H25 and MSI; Pensions – APMI, CF9, CIB Pensions, G60, K10 and K20; Savings & Investments – Cert IM, CIP, G20, G70, IMAAQ, IMC, PIC and SV1; Mortgages – CeMap, CF6, CF7, LMAPC, MAPC and MAQ; Long Term Care – CF8 and G80; Tax – G10; Corporate – G30.
IFAP has also recently updated its more detailed guide to incremental qualifications for member IFAs – this is available as a free download from the member section of www.unbiased.co.uk.
Members holding any of these qualifications (and not already listing them on the IFAP database) should let us know either by completing and returning the enclosed data capture form or by calling the member hotline on 0870 325 9020. Please note, if we already list you as holding APFC we now need you to tell us which individual APFC papers you hold. Once we’ve verified this information with the awarding body concerned we’ll update your entry on all our searches. Please don’t delay in getting this information to us, this search criteria is already ‘live’ and available to consumers and businesses using our online searches to find the local IFA of their choice.
Latest news on IFAP’s Online Marketing Package.
1,500 member IFAs have already subscribed to IFAP’s Online Marketing Package and are now receiving the cumulative benefits this service provides.
The support of these subscribing IFAs, together with our sponsors’ funding, is paying for all our promotional activity. Remember, whether or not people find you directly through IFAP, our very public brand campaign aims to make sure new customers contacting you already understand the value of the unique service you offer – namely, truly independent advice.
As IFAP doesn’t make any annual membership charge, subscription to our Online Marketing Package is the only way you can offer any form of regular financial support to IFAP. And we need your support. So whether you value our lead generation activity or our high profile media work, if you haven’t already subscribed I urge you to consider doing so. Let’s face it, charges are modest and it’s a very practical way for you to invest in your ‘independent’ future. You can subscribe by calling the member hotline on 0870 325 9020.
And remember, just one IFAP generated lead a year more than covers the cost of your annual subscription to the Online Marketing Package.
As we’ve reported above, latest figures from financial strategy consultants, Mercer Oliver Wyman, show that in 2004 we generated up to £47million in commission income by putting enquiring consumers and businesses in touch with local member IFAs. This equates to an average value of £570 per individual case. Or put another way, the commission value generated from just one IFAP generated lead more than covers the cost of your annual subscription to our Online Marketing Package.
Ah, yes – but what about the launch of www.impartial.co.uk, IFAP’s new ‘Find a Mortgage IFA’ search?
Here’s the good news. If you’ve already subscribed to IFAP’s Online Marketing Package and you list ‘Mortgages’ in your top eight product areas, your enhanced entry now automatically appears on both www.unbiased.co.uk and www.impartial.co.uk. However, the bad news is that if you haven’t already subscribed you’re now potentially missing out on two fronts. And remember enquirers using one of IFAP’s 50 plus online searches are now twice as likely to view your entry if you’ve subscribed.
Depolarisation: The end of the six month interim period and IFAP’s ‘Be Advised’ campaign:
As I hope many of you’ve seen we’ve spent much of the last six months focusing our efforts on informing consumers about the regulatory changes being made to the financial advice market. Not only have we made significant developments to enhance our member database structure, but also we’ve taken on the role of educator with the consumer media to ensure people are aware of the changes being made and fully understand the importance of seeking independent financial advice.
From a media point of view, we’ve boosted our efforts in advertising, with a significant push on consumer national and regional media over the last few weeks, to ensure people recognise the IFA blue roundel and what it stands for. A total of 45 adverts have been placed with the national press, including the Daily Telegraph, Daily Star, Guardian, Independent on Sunday, Observer, Sunday Express, The Mirror and the Mail on Sunday
Editorially we’ve been liaising with key journalists across a wide range of media to ensure they explain how the financial advice market will now look and operate. In particular, we’ve met with a number of national personal finance journalists and secured coverage in the Daily Telegraph, the Times, the Independent and Independent on Sunday, the Sunday Times, and the Observer. All of which has run in tandem with our exclusive campaign in the Financial Mail on Sunday which has been running since January.
To accompany our focus with traditional print media, we’ve also been developing our web presence by securing deals with a variety of online portals and newsletters. Recently we secured both advertising and editorial presence on the Times and Daily Telegraph’s weekly online news letters. The Times newsletter is emailed to a total of 84,000 recipients, and the Daily Telegraph’s to 80,000 (and this was emailed on a daily basis for a week). Each included a link to our Be Advised campaign microsite at www.unbiased.co.uk/beadvised, where amongst other information, visitors can easily find details of local IFAs.
Finally at the end of May, we took part in a regional radio day, held in a London studio, where we conducted a combination of live and pre-recorded interviews with a total of 47 local BBC and commercial radio stations across the country.
Although the initial six month depolarisation period has now come to an end, promoting advice in a depolarised world will of course be threaded through all of IFAP’s marketing activity going forward, and our Be Advised campaign will remain a prominent feature in IFAP’s PR and advertising strategies.
PR campaign round-up
TaxAction 2005 – Tax Freedom Day
Since the last edition of Update we’ve continued issuing further elements of our headline campaign and recently highlighted Tax Freedom Day – the theoretical point in the year at which we stop working for the Government and start working for ourselves. This year this fell on the 31 May – one day later than in 2004. This milestone provided us with an opportunity to highlight the extent of wasted tax in the UK and how, by becoming more tax savvy with finances (and seeking independent financial advice); much of the £5.7bn the UK currently wastes could be eliminated.
Get Saving! 2005 – Latest attitudes towards saving and budgeting
As part of the ongoing savings campaign, we’ve recently released the latest quarterly Savings Brake figures – comparing how much we borrow for every pound we save. This quarter we’ve seen a resistance to get further into debt, with a 44% drop in new debt levels, and new borrowing levels at their lowest since 2001. In addition, we’ve updated our campaign microsite at www.unbiased.co.uk/getsaving by adding visuals which track the Savings Brake trends since 2001, which we will continue to update as the new quarterly figures are calculated.
Placed articles with online and regional titles
We’ve recently been exploiting many opportunities with a number of portals and websites to increase our presence online. A number of our members who are part of IFAP’s Media Services are taking part in an ongoing initiative with www.yahoo.co.uk, where a makeover section has now been developed, inviting visitors to email questions to an expert IFA. Each week a set of 3 new questions and answers are added, with a link to www.unbiased.co.uk and the online ‘Find an IFA’ search facility.
In addition, we’ve been working closely with BBC News Online to develop a series of articles promoting the benefits of an IFA and seeking independent financial advice and the types of areas advice might be required on. These are uploaded to the site in the Money section and remain on there. Recently articles addressing the housing market, and bereavement planning have been added.
Our ongoing relationship with www.msn.co.uk has grown from strength to strength which has led to issues and ideas suggested by IFAP being covered on the portal’s front page. In particular, we had a strong editorial presence at the end of May, with a double hit promoting Tax Freedom Day and also the end of the depolarisation interim period. Both pieces led visitors to MSN’s white label of our online ‘Find an IFA’ search tool and to our tips and online guides, from both our TaxAction and Be Advised campaigns.
Regionally, we’ve been working closely with the Scottish media, in particular the Scotsman and the Scottish Daily Mail. Members from the Scotland area have been given editorial and advertising (at a significantly reduced rate) opportunities with both titles in a series of supplements which they are producing.
The next Scotsman Money Moves section is scheduled for publication in September, and we’re about to embark upon a twelve week initiative with the Scottish Daily Mail in July. This in particular will focus on the benefits of independent financial advice in a depolarised world. Opportunities exist for members to take part and anyone interested should contact Gary Hall at the Scottish Daily Mail on 0141 225 3300 as soon as possible.
Press Clubs report
News from around the country
Sussex: Club members are currently discussing a new campaign to commence in September 2005 and are in the process of recruiting new members. A meeting to discuss the structure and logistics of the new programme will be held on Thursday 30 June.
Liverpool & North Wales: A recent recruitment email to members in the area has resulted in several new members joining the Club who are already taking part in the monthly features programme. Opportunities still exist for members to join this small but effective Club, which works closely with its host newspaper, the Liverpool Post. The Club enjoys a unique deal with its host newspaper, with features appearing on separate days in both the Liverpool and North Wales editions of the papers.
Newcastle upon Tyne: Although currently there is no active Press Club operating in the Newcastle area, IFAP’s own media team remain in close contact with the Personal Finance Editor, Jane Hall, to provide her with a regular flow of press release material and story ideas. Any members in the area who are interested in starting a new Press Club should get in touch, and we will help to facilitate this relationship.
Leicester: This long established Press Club continues to publish a monthly full page in its host newspaper, the Leicester Mercury, which includes a range or articles and Q&A and case study led features. Recent feedback from the newspaper shows that the section continues to be popular with readers.
Bournemouth: Members of this Club continue to publish regular monthly features in the Echo and regularly liaise with the paper’s Business Editor. The Club is currently negotiating a new campaign and anyone wishing to participate should get in touch.
Edinburgh: Two editions of the Scotsman’s Money Moves supplement have been published to date. This supplement is devoted entirely to the independent financial advice sector with articles written by both IFAP, member IFAs and financial journalists.
The campaigns currently running in Scotland form one of the most prominent regional initiatives with well established programmes currently underway with the Scottish Daily Mail, Scotsman, Herald, Dundee Courier and the Aberdeen Press & Journal.
As highlighted throughout this edition of Update, depolarisation has been the hot topic of discussion for the first half of 2005, and as we embark upon a ‘depolarised’ world, it is more vital than ever to promote the independence brand and highlight the added value your independent status can provide to consumers and businesses seeking financial advice.
IFAP’s Regional Press Clubs provide a platform to do this on a local basis, and support the national PR and advertising campaigns that IFAP already has in place. Any member who is interested in joining any of the clubs mentioned above, or who wants to learn more about other clubs running across the UK, should contact IFAP’s Regional Press Officer, James Sharp, on 01902 850053 or at james@ifap.org.uk
Forthcoming Press Club Dates:
July
19th July – Liverpool & North Wales
21st July – Surrey, Guildford
26th July – Aberdeen
August
16th August – Dundee
18th August – Ipswich
September
13th September - Glasgow
The bottom line
The first half of 2005 has no doubt been one of our busiest periods yet, in both developing our member database to be the most reliable source of truly independent financial advisers, and in continuing to promote the benefits of independent advice to consumers.
Year to date consumers and businesses have used IFAP 257,157 times to find details of a local IFA – a 39% increase on our position this time last year, which is fantastic news and means we’re on target to smash the 500,000 barrier for enquiries in 2005.
Interestingly, 81% of these enquiries have been online, through www.unbiased.co.uk, or via the searches running on one or our partner websites – hence our drive to encourage as many members as possible to reap the benefits of having an online presence – it really is the tool of choice for consumers.
David Elms
Chief Executive
IFA Promotion Ltd
