Stand up …… and be counted (if you want real change)

I really admire comedians.

Most people think that they are funny but very few could ever be proper, paid-enough-to-not-starve comedians:  most people tend to lack the adaptable, enquiring wit, the confidence, dedication to hone a routine, memory skills, performance and delivery style and the ability to engage an audience. Perhaps their biggest skill is to get to the punchline while responding positively to heckling… sometimes, retaining these critical gems and building them in to future performances.

Most people struggle to even heckle properly. Occasionally they might shout out a criticism, point of correction or comment – usually about the comedian’s look, image, weight or other perceived failings. These are usually rebutted, rejected and returned with interest by a skilled humorist as he or she takes only a minor detour from the well structured and rehearsed-to-death path. For the heckler, the rejection can be devastating and humiliating. For the audience, it is often the equivalent of a sacrificial offering simply serving to reinforce the sense of awe and wonder in the Master they behold on the stage before them.

Had the heckler been better prepared with material and delivery process, the crowd could have been turned and a true comedian – with funny bones rather than funny lines – may have demonstrated the skills of an ability to adapt, review, revise and come back stronger next time.

But the heckler is never prepared. The heckler is rarely even heard despite (or perhaps because of) his throaty, nerve filled garblings – they get hidden under a collective chuckle.

He fails the first rule of comedy: its all about …..

Compare this with a football crowd.

There are usually three groups: the home fans (the majority);  the away fans (a small minority herded into an uncomfortable position with limited ability to see what is really going on), and; the neutrals – prawn sandwich eating, corporate greys.

A wall of noise and colour with the occasional funny comment, song or chant in response to the game or (more often) the opposition fans.

Ironically, it is often the small band of away supporters who are heard loudest. Disproportionately loud. Regardless of the result.

Why is this? Well, it is easy to say that they have “taken a run at it” as they set off earlier, found a pub and oiled their vocal chords. In truth, this is only correct when we consider why they have set off early and arrived in time for a wet lunch – their passion. They are dedicated. Their lives revolve around making their voices heard – In the crowd they recite well rehearsed songs, chants and abuse of the opposition. Whilst they will go to the end of the earth and sing to their last breath in support of their team, they are also usually the voices heard when it is time for a manager/chairman/owner/policy/player to come/go/stay at a club.

Organised. Vocal. Passionate. Engaged, no matter how good the team is. They are true stakeholders, regardless of financial ownership or share holding. True Stakeholders -their worlds depend on the team, which in turn depends on them.

Some supporters may be inclined to call in to radio phone in shows before, during, after a game. They talk with real passion. They each have an opinion. They could all be the manager and do a great job. They each want to express their feelings and opinons loud and clear, warts and all. In many situations, this “collective heckle” brings results in the form of “the 12th man” on the pitch or the seeking to influence the manager before he is flung off the bench and relieved of his company BMW

But, it is really rare to experience this level of enthusiasm about other subjects that “matter” to people in confronting a multi-million pound industry around which their lives endlessly revolve.

The closest comparison outside of sport has to be a Union. Generally working class, inspiring a sense of togetherness and as a collective voice. They have a common purpose and a shared interest. But where football is a growing business that in some cases has replaced “community”,  Unions these days only tend to march or strike about their own members’ pay or conditions in a defined industry or location. Thatcher’s Laws did their best to kill off the mass campaigns for social change and signalled the relegation to a few leaflets and banners. Four voices in the wind outside a factory gate tends not to change the world. Ironically, the flip side of Thatcherism was in support of ownership – not stakeholding, financial ownership or Share Holding.

Here, single voices with carefully phrased questions or letters to the Chair of a FTSE100 company (particularly at AGM or other shareholder meetings) can cause a squirm, which leads to a wriggle, which leads to the sort of squeeky bum time that Football managers fear. This pre-rehearsed and researched enquiry can stir the crowd and bring them onside. It can expose the weaknesses of the defence and lead to calls of “sack the Board”.  No smart-arsed response or well practiced put down can undo what has already been tabled as a question: you will get a response. Follow it up with another and another until they are either so obviously lying that they can be exposed or have come clean and resolve to change. 

Sometimes, the simple questions can demonstrate just how little thought a company has put into its supply chain management or investment strategy. Often, it can show just how little day-to-day control the “Directors” have in driving the business: Look at Barclays under Bob Diamond. Now, that was a joke!

This week, I was reminded of the work of ShareAction. (ShareAction.org).

Simple engagement and questioning campaign project work, that helps ordinary people who care about their world to understand what the firms they own are doing with their money. This includes the firms we may own as part of the membership of Pension Schemes. If you own a pension you part own the company: You have a voice. Use it.

For a number of years, I have been helping individual investors to identify where their money goes and to review this along with their passions and beliefs. Mainly, this Ethical or Socially Responsible finance planning approach has been about avoiding the bad guys and investing in the good stuff. I like this approach as 80% of my clients invest in the 20% of firms that they are happy with – they have put their money where their mouth is.

But I can see a bigger role in helping clients to change the remainder of firms and widen the choice of assets, funds and approaches. This could open up some great (ethical and SRI) investment opportunities with firms or funds which are doing well but not necessarily doing good.

It may only need them to come clean. It may only require a slight change of attitude, approach or reporting process. It might be that a small distance travelled could help to build support and encourage more momentum.

But like anything, if we don’t tell them that we don’t like what they do or how they do it, how will they ever know and how will they ever change.

Yes, Stand up and Heckle if you want to be ignored or put down.

Engage and enquire if you want to be heard.

If you are a shareholder, act like a stakeholder – make it matter to you, take just a little interest and smidgeon of control.

…….. and don’t forget, the first rule of comedy is the same as the first rule of social change: It’s about time.

want to know more, talk or comment? email me at robin.wood@mail.com

thanks

Is your Pension a Sinking SIPP?

How the Banks take advantage of complicated pension rules – for their benefit, not yours

This year 20,000 people will complain to the Financial Ombudsman Service about bank pension and investment advice but this is the tip of the iceberg

If you have ever received advice from Barclays – or indeed any Bank – to transfer your pension plans, you may be owed thousands of pounds in compensation, as many of our clients have discovered. Most people do not fully understand pensions, which can be quite complex. Bank advisers realise this and have taken advantage by bamboozling customers into making pension transfers from which they earned huge commissions.

Here are some examples of their tactics:

 Confused about Consolidation?

‘Consolidation’: this is a favourite expression of the commission-seeking adviser, who suggests to his prospective client that he might benefit by ‘simplifying’ his pension arrangements by transferring them all into one ‘consolidated’ plan. Unfortunately it is often the case that a hefty penalty is imposed on the pension fund being transferred, which the adviser fails to point out. Also, valuable guaranteed benefits may be lost when a policy is given up – again, the adviser may not disclose this because to do so would lose him his sale. Guaranteed Annuity Rates, which were often provided by pension plans started in the 1980s and 1990s, are incredibly valuable today, when interest rates are so low. We have seen many cases where people LOST these guarantees because they were not told about them.

Drawdown drawbacks?

‘Pension Drawdown’: this is a way of taking pension benefits while remaining invested in the stock market – it is therefore a High Risk strategy generally only suitable for people with very large pension funds. It is also much more expensive than simply buying a pension with your fund. High charges and poor investment returns have resulted in many people seeing their retirement income shrink by up to 50% in recent years – people who were completely unaware of the level of risk they were being advised to take!

Is your pension a sinking SIPP?

Self-Invested Pension Plans (SIPPs): Barclays sold so many of these that the provider – Standard Life – has an entire department to administer them. The ‘selling point’ was that a SIPP offers a wide range of investment funds, however most people were then shoehorned into Barclays’ own funds – often into their dreadful underperforming Dynamic Tracker funds. Charges on SIPPS are typically much higher than charges on other pensions policies, and are also ‘hidden’ in complex structures that are virtually impossible to uncover unless you are a specialist. We have seen cases where a commission was paid when the transfer was made, and then another commission was paid when the money was invested. Double-charging was common practice.

Commission Cons

Commission: did you think that commission has been abolished in the UK? Think again! Barclays continues to receive ongoing ‘trail’ commission on all pensions sold by their advisers – even though the advisers have now been sacked and no service is being provided. This commission charge can be anything from 0.5% p.a. up to 2% p.a. So, on a pension pot of £50,000 you could be losing up to £1,000 p.a. for ABSOLUTELY NO BENEFIT WHATEVER.

Need help?  You are not alone

What to Do: Like many people, you may have nothing more than a ‘sense’ that something is not quite right with your pension – is it underperforming, failing to grow, paying lower benefits than it used to? Even if you have no specific complaint, allow BICS to investigate for you and tell you the whole truth in plain English about your pension transfer, its costs, charges, penalties and any lost benefits.

Compensation

If you have already been offered compensation by Barclays, this is because the Financial Services Authority (FSA) demanded that they review their sales of all pension transfers in 2010. Even if you accepted the compensation, you should still have your case investigated, because of course Barclays paid the absolute minimum they could get away with.

Our biggest compensation award – £331,000 – was recently paid to a client who initially accepted Barclays’ offer of less than £12,000!

If any of these points feel familiar or if you just don’t understand what happened or what you agreed to, get in touch.

Email Robin@BICS-ltd.com or call 01959 570699  or click here Sinking SIPP pension

 We offer a free review of your pension or investment complaint and will be able to tell you your chances of success and the work required to support your case. There is no guarantee that using our service will be any more likely to succeed than a direct application to the Ombudsman containing the same information and evidence. As qualified, experienced and professional Financial Advisers, our skill is in retrieving and analysing evidence, identifying sales motives and quantifying the extent of any loss.

 

We operate as a Low Cost (not for profit) alternative to Claims Management Companies however The Financial Ombudsman Service does not charge.

BICS ltd is registered with the MoJ Claims Management Regulator as a Complaint Management Company, authorised to assist clients with claims in respect of Financial Services firms. Authorisation Ref CRM 26087. Please see the links below.  

 

https://www.claimsregulation.gov.uk/details.aspx/26087/Bank_Investment_Complaint_Solutions_Ltd/?search=simple&business=bics&authID=&sector=-1&county=-1&status=-1

http://www.justice.gov.uk/downloads/claims-regulation/conduct-authorised-persons-2013.pdf

Auto-enrolment Pensions – Opportunity or Threat?

Change is good. Often Daunting…. but good

Whenever the Government introduces a change in employment or financial regulations, it is usually followed by three periods:
• The grumble phase – where, despite mixed response to the possible outcomes, the efforts involved seem daunting.
• The quiet phase – the gap between announcement and reality hitting the horizon
• And the panic phase – as the ground / deadline approaches rapidly.
Auto-enrolment Pensions is the latest change and many large employers are already in full swing since October 2012. All employers will have to have an acceptable scheme in place by 2018.

For many smaller businesses the whole process of preparation and implementation will be like a parachute jump. With our help, your organisation could make the most of the smooth ride and long view and become able to hit the ground running …. rather than in a heap.
This could be the opportunity you have been waiting for to review your whole business ethos and the role of your many stakeholders.
As well as the stages of preparation and hoop jumping that the Government and The Pensions Regulator guides explain, there are some good opportunities to get to know your team and to shape some common goals.
Why? … because at the heart of all Pension schemes is the principle of Membership and Co-Ownership. Every member is equal. Every member has a say and a chance to influence how the collective pot is used to achieve the best for every other member’s future income and wellbeing.
Over the past 20 years, the growth in Ethical and Socially Responsible Investment has taken great strides. Ethical Investment accounts for over £13 Billion of investment annually in the UK.
In the same way as Recycling and Fair Trade have grown into common acceptance, ethical investment is increasingly of importance to individual investors and to collective bodies, such as Pension Schemes.
Whatever we spend our hard earned money on makes a difference. If we choose one brand over another, it makes a statement. Sometimes these statements are about more than image, trends, fashions or fads. Choosing to buy veg from a farmers market rather than imported thousands of miles to a supermarket shelf makes a small contribution to the environment. Refusing to buy Brand X shoes because they are made in an Asian Sweatshop is literally “voting with your feet”.
For many of us, a Pension Fund may be the most expensive thing we ever own. Over 40 years of working, it can easily be worth more than your home. When multiplied by the 5, 10, 50 or 1000 colleagues or other people in the same Pension Scheme, that is a lot of purchasing power…. and what’s more, the Government tops it up with a tax rebate or additional contribution.
So the choice of investment for your pension is important – and not just to make sure you have enough in the pot for your long and healthy retirement years. This is a chance for you and your fellow scheme members to influence industry, to enhance the environment or to campaign for change.

As an employer, this is also a chance to open up a dialogue on the aims and goals of your business: Your role is not just to create “Widgets”, you have a duty to listen to your employees and to build a collective understanding. Your staff members are your ambassadors: they take your message and tell their families and the world about who you are, what you do and how you do it.
If you are a charity or social enterprise, the pension contributions you will have to make for each eligible employee could be seen as a 3% bite out of your returns. Or, they could be seen as an opportunity to invest in their loyalty, make a statement or to add to your outputs by supporting a cause.
For example, as an environmental organisation, would you rather fund an oil company or a Solar Farm? As a children’s rights campaign group, would you rather invest in Nestle or support companies with a positive education programme?
Auto enrolment is an opportunity to open this debate with your staff members – it will help them to see what you are trying to achieve and help you to see what they can add. Think of it as marriage guidance counselling – the more you talk the more you know… for better or for worse.
Pension law has always been complex – that is not going to change.
Auto- enrolment and extended entitlement is a positive step… plus, it’s the law. It is happening.
Why not talk to us, take advantage and take control.

Contact me on robin.wood@mail.com or 01792 424124

http://www.parkhousefinancialservices.com

The Growth of Ethical Financial Planning: Not just Freaks and Hippies

Ten years ago, very few people recycled their rubbish. Some people were thinking about energy efficiency and unleaded petrol. Fewer were aware of Organic Produce and Fairtrade goods. Many people felt they were doing their bit for the planet and less fortunate people in the world by giving to the occasional charitable fundraiser.

Many things have changed in the past decade: we have seen a huge global financial crisis, a growing mis-trust of Banks and more recently social and financial unrest in the Mediterranean and the Middle East.

In the past few months, £74 million raised by Comic Relief indicates that giving to charity has continued to be a consistent outlet for people to show that they care.

But does this “text a fiver” approach repair the potential damage being done to the planet and its people when a large chunk of your money goes to fund the oil, gas or nuclear industries, often without you knowing?

Do you know where your money is going?

Do you know what you own?

Ethical Financial Planning has shaken off its image as “solely for hippies and do-gooders”. A 2011 survey by UKSIF indicated that half of us would like to make money and make a difference and it is a myth to say you can only have one or the other.

In the past 3 years, most of the Ethical investment funds have out-performed the traditional products sold by most banks and traditional advisers. With over £35Billion invested in ethical funds, it is no longer a fringe market.

Ethical financial planning is about striking a balance between your money doing well for you and doing some good for society and the planet.

Everyone believes in something or has a view on the environment, human rights, working practices, arms, tobacco or pornography industries.

Isn’t it worth checking to see if your money is where your mouth is?

Your beliefs are as personal as your finances.

A traditional Independent Financial Adviser will offer solutions to your financial requirements. An ethical review will help to match these up with a made to measure portfolio that fits your feelings and your finances.

Why buy from the limited range on the bank’s shelf when you can have your financial future tailored to fit you? – it could help you to feel far more comfortable!

How does an Ethical Financial Review help you?

Aims:  To help you understand where your money is and what it is supporting, often without your knowledge.

To find the right financial products and achieve a balance between your beliefs and needs.

Process:  The review includes a full assessment of your personal beliefs and a thorough analysis of your current and future financial circumstances.

It can include filtering out funds that invest in weapons, oil, child labour, nuclear, countries with a poor human rights record or firms which damage the environmental. It can also seek out and support firms and industries that make a positive impact through work practices or green energy.

Outcomes:  A personal report including a series of detailed recommendations that identify how you can meet your financial needs and support the things you feel strongly about.

Recent work with a well-known Environmental Charity in South Wales found 24% of their pension fund invested in Oil, 11% in animal testing and 5% in “exploitative” supermarkets. 

Find out what you own: contact Robin Wood on 07846 916728 and quote “wordpress” for a free initial ethical review or your finances. Offer Valid to 31st July 2012.

Robin Wood, Ethical Independent Financial Adviser,

Park House Financial Services. www.parkhousefinancialservices.com

(Member of UK Sustainable Investment and Finance [UKSIF] and the Ethical Finance Association {EIA}.)

Park House Financial Services is an authorised representative of Lighthouse Advisory Services Ltd.

Regulated by the Financial Services Authority reg 195199

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