Financial Planner: Your firm recently gained accredited status. What did this mean to you personally and to the company? How much hard work went into achieving it?

Quentin McCormick CFP^TM, Chartered MCSI: We became the first and only firm in Liverpool to achieve accredited status and to do so was a fantastic achievement. It took a great deal of hard work but this says to our clients, introducers and peers that this is a company that’s prepared to put in the hard miles to demonstrate our professionalism.

FP: How did you get into planning and what attracted you to the profession?

QM:  I was working for Scottish Mutual and was enticed into joining the financial planning division of an accountancy practice back in 1996. This was shortly after the introduction of income drawdown and I recognised this as a good opportunity for me to go on and build a client bank with a recurring income stream.

FP: When was your firm set up?

QM: Pavis was started in 1992 by John Fearon but Bob Newton took over as Managing Director in 1998 and has been successfully at the helm ever since.

FP: What sort of a company is it and what services does it offer? Does it specialise in particular clients?

QM:  It’s a private client financial planning business. The base proposition revolves around cashflow modelling, tax planning and investment.

FP: How many staff do you employ?

QM: We have four directors/planners along with one other full time planner, two paraplanners (with another starting early December) and six in administration.

FP: Do you have plans to expand and recruit in the next year?

QM: We expect to grow as organically as possible by recruitment, but only if we find the right individual. We have a number of interesting projects on the go, which might lead to significant growth. We are not wedded to the idea of growth; we would rather be small and happy than big and miserable. The main concern, which we have addressed, is that we have long term succession plans in place that work for clients, shareholders and employees.

FP: How many clients do you have and what’s the annual turnover?

QM: We have about 400 active clients and turnover will be approximately £1.1m in our current financial year.

FP: You have been chair of the IFP Chester and North Wales branch. Why did you decide to take on this role and what has it taught you about financial planning and the planning community?

QM: The IFP was, is, and will continue to be a most fantastic organisation made up by people who are willing to share their best practices and truly encourage those in financial planning.

FP: What are your thoughts on the future now the IFP has merged with the CISI? What are the key benefits you see the merger having for the financial planning profession overall?

QM: The future will be dictated by the members, some of whom are sorry to see the IFP lose its ‘stand-alone’ status but many of whom recognise that having the resources of the CISI behind it creates a real opportunity to spread the word about financial planning. Our local Chester and North Wales branch will be merged into the Liverpool, Chester and North Wales branch of the CISI. We shall have representation on the regional committee and see a number of opportunities for our members.

FP: What has been your greatest source of achievement so far in running your business and what are you proudest of?

QM: Transitioning the vast majority of my clients from my previous firm and achieving accredited status. I’m also proud about making Pavis an organisation which is able to attract and retain some exceptional employees and meeting the needs of our clients.

FP: What has been the biggest hurdle or challenge to overcome for you personally in your career and for the company itself?

QM: When I first started as an adviser in 1996, the role felt more sales driven. Thankfully that’s changed and I now see myself more as the client’s friend and financial confidant.

FP: What have been the key lessons you have learned at your current business so far? What tips would you pass on to other planners?

QM: Love your clients and treat them how you would want to be treated. Constantly look at your client proposition and aim to improve it. Ask yourself regularly ‘how can we make this better for the client’.

FP: What do you think the key is to making more of the public aware of the benefits of managing their finances through a financial planner and making this easier to understand?

QM:  I would like to see greater financial education at school. I also think this should include information on how the government and country is financed, as too few people understand the basics. It seems odd to me that school leavers have little real knowledge of mortgages, savings, investments or tax.

FP: If you could change anything about the financial planning profession, what would you choose and what’s the future for financial planning?

QM: The future is bright and there are some great opportunities for long-term rewarding careers. However, to remain efficient we must ensure needless regulation doesn’t choke the life out of a business. I’ve had conversations with advisers at other firms who are waiting three or more months for a suitability report to top up an ISA. Guess what happens.

FP: What difference have the reforms to pensions which have been implemented since April made so far to your business?

QM: We have received more enquiries, a few of which have resulted in client engagement. We have also, like many firms, had to break the news to some people that were not in business to sign off their inappropriate defined benefits transfers.

FP: Is there anything you’d like to see the FCA do? What is the biggest challenge for you in regulation?

QM: I’m not convinced that the FCA fully understands what we do on a day to day basis. We need to find a way of ensuring a high level of professionalism and consumer protection without tying firms up with the endless issuance of lengthy suitability reports that clients don’t either read or value. I fully expect that a number of financial planning firms will enhance their investment offering and seek DFM permissions from the FCA to manage a range of in-house model portfolios.

FP: Many in the sector have recently complained about vast rises in their FSCS levy. What kind of percentage rise have you experienced and what is your view on the way this is apportioned?

QM: Just short of 300%, which partly reflects our growing turnover. I’m not sure the current apportionment system is fair but accept the need for consumer protection.

FP: There has been a growing debate over so called ‘robo-advisers’. Can artificial intelligence ever replace a human financial planner?

QM: Yes, it can and to a degree it will. There are people out there who are more than happy to paddle their own canoe and robo advice might suit them. There are also plenty of people who want face-to-face advice.

I don’t see Pavis becoming a robo-adviser but we shall embrace technology to ensure efficiency. We already use online risk assessment tools with clients and electronic fact finds. This saves time as clients complete these at their leisure and we spend client meetings discussing important issues rather than filling in forms.

FP: What do you think about the reforms to dividend tax credits and do you agree with the changes? How might this affect your business and clients?

QM: It didn’t surprise me in the least because HMRC is well aware that many companies pay directors and shareholders a nominal basic salary and top this up with  dividends, thus minimising national insurance contributions. However, it will also result in a number of basic rate taxpayers now having to complete self- assessment returns for what could be nominal amounts of tax.

I don’t see it having a material impact on this business but it will, of course, impact the way in which we advise clients. It will further increase the importance of pension contributions as part of the overall remuneration package.

FP: What do you like doing in your spare time outside of work? Do you have any unusual hobbies?

QM: I sailed competitively when I was younger and also golf and ski. Family and work commitments absorb most of my time but there are plenty of things I would like to do.  I’ve sailed around many of the Greek Islands and would like to do a longish trip sailing the Mediterranean. I would also like to visit the South Pacific and French Polynesia – but don’t enjoy long haul flights.