A brief presentation on the value of our proposition for clients of a solicitors practice and why you may consider applying to become a referral partner (all applications subject to consideration)

1. What’s in it for them?
What’s in it for them?
Working with the Financial Planning profession
A presentation by Basi & Basi Financial Planning

2. What’s in it for them?
Who are we?
• A Flying History
– 1994; Ady Basi qualifies as Investment Adviser
– 2001; Ady Basi creates IFA Stop Limited
– 2002; Michael Basi graduates and joins FCE Bank plc
– 2006; Michael Basi rejoins family firm
– 2010; Nicholas Basi graduates and joins family firm
• Capacity
– Three advisers and one trainee
– Administration Staff
• Focus on personal service to a few clients and their families

3. What’s in it for them?
Managing Wealth; Our Key Skill
• Wide ranging term – what does it mean?
1. Ensuring a client’s financial assets support their life plans
2. Making investments work hard
3. Minimising tax due
4. Protecting succession planning
• Focus 1; Asset Allocation
– Split according to true level of risk client wants to take
• Focus 2; Fund Selection
– Using proven mathematical analysis, monitored daily
• Focus 3; Tax strategies
– Don’t let the tax-tail wag the investment dog!

4. What’s in it for them?
Invested is Invested, Balanced is Balanced?

5. What’s in it for them?
Lies, Damned Lie and Statistics
• Prior growth proves a theory; service defines execution
• Again, we focus on client service;
– Unique Fee-based remuneration model
– Disperses income over years of voluntary retention by client
– Linked to their investment performance; they win, we win
• Client can select service level:
– Bronze
– Silver
– Gold
– Platinum
• Personal adviser access for all clients (Platinum: 18 hours per day)

6. What’s in it for them?
We are Independent - what does it mean?
1986
Financial Services Act polarises of financial advice
Independent Tied
2005
Financial Services Authority allows depolarisation to increase high-street choice
Independent* Tied Multi-Tied
2012/13
Retail Distribution Review recategorises ‘retail investment advisers’
Independent Restricted
*must offer a fee option to be called independent – otherwise called ‘whole of market’

7. What’s in it for them?
Retail Distribution Review – your 10-second guide
• Launched by the Financial Services Authority in 2006
• Aims to improve and modernise how investments are distributed to retail
consumers in the UK
• Three main goals:
1. Improve the clarity with which advisory firms describe their services to
consumers
2. Address the potential for adviser remuneration to distort consumer outcomes
3. Increase the professional standards of investment advisers
• Firms must be compliant from end of 2012

8. What’s in it for them?
Change is good....eventually
“What doesn’t kill you makes you stronger”
IFAs understand the headwinds facing the legal profession
FTSE All-Share Index
April 2009 December 2013
EC announces plans Minimum capital
4000 June 2006 to improve investor adequacy requirement
Launch of the Retail protection for packaged for personal investment
Distribution Review retail investment firms raised to £20,000
products (PRIPs)
3000
January 2013
2000 November 2007 Investment firms must be
Implementation of the EU’s fully compliant with
December 2005 Market in Financial RDR policy
December 2008
FSA proposes principle- Instruments Directive (MiFID)
1000 based regulation
All retail financial services firms
required to demonstrate Treating
Customers Fairly principles
0
Jun- 05 Jun- 06 Jun- 07 Jun- 08 Jun- 09 Jun- 10

9. What’s in it for them?
What will it require to be an IFA post-RDR?
• From January 2013, an ‘Independent Financial Adviser’ must:
– hold qualifications at a minimum level of QCF Level 4*
– conduct a fair and comprehensive analysis of the relevant market
when making product recommendations
– have sufficient knowledge of all types of ‘retail investment product’ that could
give a suitable outcome for a client
– select products in line with the ‘client’s best interests’ rule (COB 2.1.1)
– NOT accept commission from product providers
– operate a product-neutral pricing structure
• Basi & Basi Financial Planning Ltd is set to be in place long after 2013
*Qualifications and Credit Framework

10. What’s in it for them?
Maintaining your client relationship; Harnessing the full client lifecycle
IFA activities shown in white; solicitor activities shown in orange
Buy first Get Have Move Change Receive RETIRE
house married family house jobs inheritance
Mortgage/ Spousal Set up children’s Probate
IHT &
repayment advice tax-planning investments & CTFs Review Wills
estate
Conveyancing Write Wills Review trusts
Review Wills planning
Set up trusts Review trusts
Lump sum
investment
Refinance Long-term care
Client asset value
Conveyancing Equity release
Family
cover
Regular School fees Arrange Pension Pension Income Annuity
savings planning SIPP maximisation/con de-risking drawdown purchase
pension solidation
Annual portfolioAnnual portfolioAnnual portfolioAnnual portfolioAnnual portfolioAnnual portfolioAnnual portfolio
review review review review review review review
Annual ISA Annual ISA Annual ISA Annual ISA Annual ISA Annual ISA
purchase purchase purchase purchase purchase purchase
20 30 40 50 60 70 80
Client age

11. What’s in it for them?
Where do solicitor/IFA synergies lie?
Anywhere where legal advice meets financial advice
1. Trust & estate planning
Will writing Portfolio construction
Balancing interests
Trust creation
& administration* Inheritance
tax planning
Probate
Ethical investing Remember:
Estate disputes (e.g. for charities) The Trustee Act 2000
obliges trustees to review
any investments made
with trust money on a
regular basis and to
Solicitor IFA obtain proper investment
advice.
* NB: Where acting as trustees, solicitors should not refer trust work to businesses in which they have an interest

12. What’s in it for them?
Where do solicitor/IFA synergies lie?
2. High-net worth clients
Wealth management
Trusts & asset
protection Alternative investing
Estate management School fees planning
Pre-nuptial agreements Tax-efficient planning
Corporate asset Pension planning
structuring
Insurance
Solicitor IFA

13. What’s in it for them?
Where do solicitor/IFA synergies lie?
3. Elder care planning
Long-term care insurance
Power of Attorney
Equity release
Trusts
product selection
Will-writing
Impaired annuities
Equity release guidance Remember:
Income solutions
Only financial advisers
that hold the CF8 Long-
term Care Insurance
qualification can advise on
long-term care products
Solicitor IFA

14. What’s in it for them?
Where do solicitor/IFA synergies lie?
4. Personal injury and divorce settlements
Litigation Lifetime income planning
Claims settlement Tax planning
Award assessment Family financial planning
Trust creation & Pension planning
administration Insurance
Solicitor IFA

15. What’s in it for them?
Where do solicitor/IFA synergies lie?
5. Corporate & employer services
Employer & group
Employment law pensions
Corporate structure Employee benefits &
Client/supplier contracts share schemes
Intellectual property Workplace/director
financial planning Remember:
Selling/insolvency From 2012, employers will
Insurance be required to enrol all
eligible employees into a
qualifying workplace-based
pension scheme
Solicitor IFA

16. What’s in it for them?
Using knowledge of our clients to build and enhance our businesses
• Enables firms to both meet regulatory compliance requirements and build better businesses
• Requires client information to be shared across the business and not kept to one adviser/partner
• Technology essential to ensure data is up-to-date and easy to interrogate
Client Fact Find
80
70
60
50
40
30
20
10
0
Pensions ISAs Bonds Cash Funds Ot her
1. Client 2. Sales Management 3. Client
Fact Find Information segmentation
Deep-dive knowledge of A real-time picture of a Build a business around
every client business genuine client needs

17. What’s in it for them?
1. The Client Fact Find – a powerstore of information
IFAs are required to take reasonable steps to ensure that a recommendation is suitable for a client. Before
making recommendations or managing investments, an advisory firm must obtain and document the necessary
information regarding:
• Client’s financial situation – including
Client Fact Find - source and extent of regular income
- regular financial commitments
- assets, including liquid assets, investments and property
• Client’s investment objectives – including:
- length of time for investment
- preferences for risk-taking
- risk profile
- purpose of the investment
• Client’s relevant knowledge and experience – including
- familiarity with relevant services, transactions and investments
- nature, volume and frequency of transactions
- level of education and profession
Taken from FSA Conduct of Business Sourcebook Section 9.2

18. What’s in it for them?
1. The Client Fact Find - maximising the advice opportunity
Client assets
Time horizons
Are these all properly
Are investment strategies
balanced with a
appropriate to the time left
cohesive strategy?
available for investment?
(ongoing review)
Client Fact Find
Dependants and spouses
Are all personal and
investment allowances Risk profile
maximised across the whole Is the current portfolio
family? aligned with the client’s
stated risk profile and
preferences?
Pension arrangements
Are all these optimised in
Financial commitments
terms of
Are assets and liabilities
performance, charging
being offset as efficiently as
structure and ease of
possible?
management?
Turning a regulatory requirement into a commercial and client advantage

19. What’s in it for them?
1. The Client Fact Find – using it to target solicitor issues
Wills
Have wills been written
by the individual and their
partner and are these up-to-
date (e.g. post-divorce or
Client Fact Find birth)
Estates
Are there any assets to be
passed onto a dependant/ family
member. How are these
currently protected?
Transactions
Does the individual face any
imminent property, business
Elder care
or commercial transactions?
Does the individual have any
obligation to any older relatives –
how are their future needs
managed?
With client approval, IFAs can share fact finds with solicitors, thereby providing them
with regular and comprehensive client information

20. What’s in it for them?
2. Management information (MI)
IFAs use software and investment-platform tools to maintain a real-time picture of
• Level of client activity – including most recent transactions
• Client activity by adviser/office/whole business
• Clients with unused ISA and pension allowances
• Investment asset allocation by client/adviser/whole business
• Assets held per provider provider/investment group/product
80
• Gross and net asset inflows/outflows
70
60 • Monthly/quarterly/annual revenues by client/adviser/office
50
40 • Client bank by age/AUA*/professional profile
30
20 • Transfer activity from/to other advisers/providers
10
0
• Length of client retention
Pensions ISAs Bonds Cash Funds Other
Assess individual Leverage client data Track profitability by Be alerted to sudden Identify potential
adviser performance across the whole client/ adviser/office outflows of business risks (e.g. high client
business exposure to high
risk assets)
*Assets under advice

21. What’s in it for them?
3. Client segmentation – improve profitability, anticipate future business
direction and give clients what they need
Use the client fact find and This enables us to: Which in turn allows us to:
business MI to segment &
1. Anticipate future needs across the
cross-segment clients by:
whole client bank accurately and
Anticipate client needs position business accordingly
Age by life stage
2. Increase retention of high-quality/high-
Identify current and future
Asset level/profitability value clients and increase referral of
high net worth clients
new ones
Transaction frequency/
3. Deploy resources efficiently to each
objective/key concern
area of financial planning and each
Differentiate advice services/ client type
Financial behaviour/ marketing/
portfolio complexity communications
4. Identify and build key areas of expertise
by individual client needs
to build clear proposition, culture and
brand
Professional profile
5. Ensure each client pays fairly for the
service they require (i.e. no cross-
subsidies)

22. What’s in it for them?
Segmentation in action
For example, client profiling may tell us: Our key client segments are:
1. Young accumulators:
- Provide tax-efficient, growth focused
30% of our clients are professionals in their strategies
30s-50s with fast-accumulating portfolios - Keep up to date with new investment
opportunities and ideas
- Focus on online servicing
- Address life-stage financial planning
40% of our clients are over 60 with
portfolios of £400,000+
2. High-net-worth retirees
- High touch relationship with focus on
regular face-to-face contact
10% of our clients are annual ISA buyers - Focus on tax and estate-planning
with few other assets with us - Income and risk-averse strategies
- Strong potential for client referral –
including from family members
3. Transactional investors
- Focus on efficient but low-cost servicing
- Email with investment ideas and stock
market commentary
- Invite for portfolio review and assess
consolidation potential

23. What’s in it for them?
Other potential joint activities
Client newsletters Client & prospect seminars Workplace
advice
• Budget updates • Planning for a secure
retirement • Getting the most from your
• End of tax year ISA and
pension
pension reminders • Managing a divorce
• Employee share schemes
• Stock market reviews & • Funding old-age care
model portfolios • Life-after-work planning
• Passing on your estate
• Personalised portfolio • Wealth management for
• Asset protection (HNWIs)
reports and valuations directors

24. What’s in it for them?
What’s in it for you?
1.Reinforce long-term high-value high quality client relationships
2.Attract more clients within your preferred market segment(s)
3.Improve levels of client referral
4.Increase levels of business from existing clients
5.Maximise efficiency and profitability
6.Build a holistic advice proposition
Transform threats to the legal sector into opportunities- The forthcoming
changes are a welcome reminder of the need to change in a positive manner.