Fair Value Statement

Peak Life Financial Planning Ltd
July 2024

About Us

Introduction

This document is aimed at providing you with a brief overview of our firm and to introduce our services.

In this document, we intend to illustrate how we assess value and whether there is fair value between the total price of the service and the benefits and their quality that our clients receive.

At Peak Life Financial Planning, we are committed to upholding the highest standards of fair value for our clients as part of our consumer duty. We believe that fair value is at the core of building trust, transparency, and long-term relationships with our valued clients. To that end, we have developed this Fair Value Statement to outline our approach and commitment to fair value in all aspects of our services.

1. Definition of Fair Value:

We define fair value as the price at which an asset or liability would be exchanged between knowledgeable and willing parties in an arm’s length transaction. Fair value reflects the market conditions and factors relevant to the specific asset or liability, ensuring a balanced and unbiased assessment.

2. Fair Value in Investment Recommendations:

When providing investment recommendations, we are dedicated to considering fair value principles to ensure that the investments we propose are aligned with our clients’ best interests. We conduct thorough analysis and evaluation of relevant market factors, including market trends, economic indicators, and underlying fundamentals of the investment. By utilising this approach, we strive to recommend investments that have the potential to generate fair and reasonable returns based on the assessed value.

3. Transparency in Pricing and Costs:

We understand the importance of transparency in pricing and costs for our clients. We are committed to clearly communicating the fees, charges, and expenses associated with our services. Our fee structure is designed to be fair, reasonable, and aligned with the value we provide. We strive to provide comprehensive and transparent information regarding the costs involved, ensuring that our clients have a clear understanding of the expenses associated with their investments.

4. Disclosure of Conflicts of Interest:

We recognise that conflicts of interest can impact fair value assessments. Therefore, we are committed to identifying, managing, and disclosing any potential conflicts of interest that may arise in the course of our operations. Our priority is to act in the best interests of our clients and ensure that any conflicts are managed transparently and in a manner that safeguards fair value.

5. Regular Performance Reporting:

To maintain transparency and accountability, we provide regular performance reports to our clients. These reports include clear and concise information about the performance of their investments, benchmarked against relevant indices or peer groups. Our aim is to provide a fair and accurate representation of the investment outcomes, enabling clients to assess the fair value of their portfolios.

6. Continuous Monitoring and Review:

We understand that fair value is not a static concept and can change over time. Therefore, we are committed to continuous monitoring and review of our clients’ portfolios to assess whether the fair value of investments remains aligned with their objectives. We proactively adjust investment strategies when necessary, considering market conditions and other relevant factors to ensure fair value is maintained.

7. Client Education and Engagement:

We believe that an informed client is empowered to make better financial decisions. As part of our commitment to fair value, we prioritise client education and engagement. We strive to provide our clients with the necessary information and knowledge to understand fair value principles, the factors influencing fair value, and how it relates to their investments. We encourage open communication and are readily available to address any questions or concerns our clients may have.

The mission of Peak Life Financial Planning is to provide top quality independent advice.  We wish to establish a successful partnership with our clients, our staff and product providers that respects the interests and the goals of each party.

The focus will be on providing a financial planning service, predominantly to business owners/professional connections and their families to help them achieve financial freedom in the most efficient manner possible. We are a firm believer in the fact ‘we are only here once’ and through provision of a robust financial planning service we will empower our clients to maximise their lives without the worry of ever running out of money.

We focus on our clients as the individuals they are and understand that everyone’s journey is unique. We are driven by an ethical approach, over and above everything else.

We will strive to maintain and increase our current client base by providing our services in a manner whereby the fair treatment of clients is consistently at the heart of the business.

Success will be measured by our clients choosing us above the competition because of their belief in our ability to meet or exceed their expectations on cost, service and expertise.

Initially the firm has opened with a sole adviser, Michael Shepherd, who is qualified as both a Chartered and Certified Financial Planner with 25 years of financial services industry experience in varying roles in both the independent and banking sectors, including administration, adviser support and compliance, before training to become a financial planner.

Earlier in his career Michael joined a young financial advice firm with aspiration to grow national presence. During this role he supported many advisers as a paraplanner, whilst building robust report writing and compliance procedures to enable the firm to scale up into a UK wide financial planning firm. In this role he formed and managed paraplanning teams to ensure the service advisers could provide to their clients was maximised, whilst remaining compliant.

A more recent role involved managing an appointed representative firm on behalf of a parent firm. The AR firm was a joint venture with an accountancy firm, and following its acquisition in 2009 he focused on creating and implementing a business development plan to overcome some major initial integration issues and subsequently create a streamlined operation which had the ability to be self-sufficient with the potential to grow into a profitable operation and asset for the parent company. This was achieved by dedicating a large portion of his time to the partners and employees of the associated accountancy firm providing coaching aimed at all levels of understanding in order to highlight the benefits of financial services. This effectively re-opened a major referral channel allowing new fee income to be generated, breathing life into the company once again. Combined with this he created a proactive plan to engage with all of the clients re-establishing these important relationships and securing existing regular income for years to come.

Michael has always aspired to give back to the financial planning community with roles that include mentoring and becoming an external specialist assessor for CISI Certified Financial Planner candidates.

Michael’s Completed Qualifications/Awards

• CII Fellowship (22^nd July 2021)
• CII Chartered Financial Planner (22^nd July 2021)
• CII Advanced Diploma in Financial Planning (22^nd July 2021)
• CII Diploma in Financial Planning (2nd August 2011)
• CII Financial Planning Certificate (20^th May 2002)
• CII Certificate in Discretionary Investment Management (26^th April 2018)
• CII Award in Pensions Update (16^th June 2016)
• CII Certificate in Life & Pensions (21^st December 2010)
• CII Award in Long Term Care Insurance (7^th April 2017)
• CISI Certified Financial Planner (30^th June 2016)
• CISI Chartered Fellow (September 2021)
• Birmingham Young Professional of the Year – Financial Services 2012

Michael’s Planned Qualifications/Awards

• STEP Certificate for Financial Services – Trusts and Estate Planning (December 2024)
• SOLLA – Society of Later Life Advisers (2025)
• CII AF6 – Senior Management and Supervision (2026)

It is anticipated there will be an increase in staffing over the next 12 months as a result of hiring a Technical Administrator, who will be responsible for supporting the adviser in delivering exceptional client service along with further growth of the firm. While the firm grows over the initial 3-5 years with the addition of 1-2 employed advisers, further support staff will be employed with the initial hire expanding their role to that of Practice Manager. All advisory staff are to be retained on an employed basis.

At our core, we aim to improve the financial wellbeing of our clients and be a guide on their journey to living their peak life, on their terms. We’ll devote time to help our clients to identify key life objectives and create a strategic plan that will give them the clarity and confidence to achieve their goals.

The Peak Life financial plan will balance our client’s goals and responsibilities, putting them in control of their financial future, giving them complete peace of mind that they will be okay, no matter what happens.

At the start of the journey we focus on developing a long-term strategy to assist our clients with achieving their unique personal financial goals and then stay by their side to help them stay on track.

The best plans are designed to evolve throughout your journey and so our discussions will evolve over our client’s journey and may include the following areas of financial planning:

• Financial goals setting – Personal & Business
• Career ambitions
• Children
• School fees planning
• Retirement planning
• Personal wealth management
• The impact of premature death or serious illness
• Marriage
• Divorce
• The provision of care
• Cash flow analysis
• Succession & Estate Planning

The Value of our Service

By leveraging the quality and services of an organisation like Benchmark, a Schroders plc group company, we have comfort that we will remain at the leading edge of our profession, ensuring we maintain a “Best Practice” approach to serving our clients.  Many of the benefits we derive, we see as having direct value add relevance for our clients, including:

• The provision of an independent complaints handling process for all of our clients,
• enhanced professional indemnity insurance
• integrated client technology systems, including the Wealth Platform
• independent compliance supervision of our advisers and the suitability of our client advice.

Best Practice provide an institutional regulatory supervision and compliance framework service which provides us with a high level of regulatory assurance and leading-edge client management systems.  This high quality and financially sound organisation ultimately provide us with a high level of assurance and comfort around the regulatory framework of the proposition and services we deliver to you, our clients. 

We are aiming to become a Chartered Financial Planning Firm – and how does that translate to value for our clients. Being recognised as a Chartered Financial Planning Firm means we are committed to the highest standards of professional competency, ethical standards, and integrity. We represent the gold standard in financial planning.  We know this gives our clients a great deal of comfort. The requirement to become a chartered financial planner with the Chartered Insurance Institute, is the culmination of years of learning and professional practice. 

Initial Advice

It is important that you know what to expect in terms of the services we provide, and that you understand our commitment to you in the provision of those services. We intend to be professional, clear, and fair in our dealings with you, and will always ensure that any service or advice provided is in your best interests.

Whatever financial decisions you have to make, the first step towards making the right decisions is to establish a clear understanding of your financial needs and current situation. We’ll invest time to help you to identify key life objectives and create a plan that will give you the confidence to achieve your goals.

The steps included at the initial advice stage include:

• Discovery Meeting
• Full get you know you meeting
• Establish your goals and objectives / needs and wants
• Establish your priorities
• Establish your attitude to risk and capacity for loss
• Analysis of existing planning
• Research of potential solutions
• Construct a holistic financial plan
• Meet to discuss the financial plan and recommendations
• Agree implementation

Ongoing Advice

Once the financial plan is active, our ongoing advice and service will keep our clients focused on meeting their life goals and objectives. Our ongoing advice includes the financial planning and wealth management aspects of our relationship with clients.

For us and our clients, this is an integral part of the financial planning journey and our annual ongoing advisory service.  It gives us an opportunity to sit down with you and your family, to reflect on the past year and to look forward and consider what might be on the horizon for you in the coming years.  To give you reassurance and peace of mind about how your investments are tracking against your goals and to review our plans in the context of any changing circumstances in your life, new goals, or changes in your objectives.

We consider the outlook for markets and the economic landscape and changing tax regulations which might impact on your current plans. We make sure everything we are doing remains suitable and is aimed at helping you and your family to achieve your goals. It is an opportunity to think about the coming years, plans for your family, begin to consider key life stages and events and how we might need to adapt our plans for them, ensuring your current position remains appropriate for you.

We will do this by undertaking an annual financial review to include:

• A review of client’s needs and objectives
• Changes in client’s personal circumstances
• Client’s attitude to risk and capacity for loss
• Impact of tax and legislative changes
• Client’s Will and personal estate
• Review of the ongoing suitability of client’s investments
• Provision of a personal recommendation to ensure that clients remain on track to meeting their needs and objectives.

These meetings will be supported throughout the year by;

• Quarterly valuations and statements and performance overview of their investments.
• Review of tax allowances and exemptions and Lifetime cash flow modelling exercise.
• Telephone and email access to Technical and Administration staff.
• Review and confirmation of ongoing suitability of Platform or Discretionary Fund Manager (DFM).
• Regularly rebalance as agreed and if necessary the underlying investment funds within the clients portfolio, in line with the agreed asset allocation. Discretionary Fund Managers (DFMs) will rebalance at their discretion.
• On-going access to a qualified financial adviser to assist with any queries or guidance needed/advice at the client’s request
• On-going administration support
• Regular newsletters or Investment Bulletins
• Personalised access to online valuations
• Liaison with accountant/solicitor (if requested)
• Provision of Income tax or CGT statements (if requested)
• Option of Financial Health Check including:
• Tax planning
• Estate Planning
• Income and expenditure review

Cash Flow Planning

As part of our initial and ongoing advice, we create and update a bespoke cash flow plan for you to enable clearer forecasting of your specific situation in line with your ideal future plans. By incorporating cash flow planning into our service, it helps us to show you visually how your plan has been set up to meet your objectives.

The cash flow forecasting provides a visual illustration of how a client’s investments and wealth will move over time in relation to the financial plans that we formulate to meet their goals.  This gives clients considerable comfort knowing that there is some mathematical rigour to our advice and how it will help them to meet their goals. 

Cash flow planning allows us to scenario test your plans against historical market events and simulate how our clients’ goals could be impacted by these types of events.  It allows us to show how risk events might impact portfolios.  It’s a really great way to help you understand more about investment risks and how it translates to the plans you have in place.  It helps you to feel more informed and comfortable about your plans.

Advisory Services

• Family Protection Planning – It may be an uncomfortable subject but we all need to plan for the unforeseen in life and how this would impact ourselves and our family. We can help you to consider different scenarios which could occur and identify if there are any shortfalls in your protection planning. We can explain what options you have to address these shortfalls and how they would ensure you and your family are able to maintain your lifestyle and still meet your longer-term financial goals, in the event of ill health or death. We have access to professional tools and resources to conduct analysis and research to find the most suitable product for your needs
• Holistic Financial Planning – It is not just about monetary goals; this is about life and family and a consultative approach. This enables us to help clients to think about things they may not have considered and how plans can work together to create a cohesive timeline of advice.
• IHT and Estate Planning – We work with your other professionals who have a deep knowledge and understanding of HMRC tax rules in relation to clients and their estate’s assets. We can help to understand the value of future liabilities and design and implement strategies to reduce this burden, often saving clients thousands of pounds in potential tax charges. This provides real value and peace of mind that your loved ones will be looked after when they are gone.
• Retirement Planning – A key life phase. This is an area of planning which deserves significant time in reviewing for our clients each year. Often in the background, checking on progress of plans and investments you have made to fund your life in retirement.  Adapting to market swings and modelling various impact scenarios.  Retirement planning is one of the most valuable services we provide our clients. More than 20% of our clients are currently in retirement, following our advice and drawing on their assets to live a stress-free life in retirement.  Our retirement planning takes the worry away from our clients.
• Long Term Care – Long Term Care can be a complex, emotional and difficult topic. Whether thinking about yourself or exploring options on behalf of a loved one, we will simplify and explain all the options available and how best to plan for them.
• Advice for Entrepreneurial Families – Where we step in and provide business advice, we are able to advise on areas that could include key man insurance / shareholder protection planning. The correct solution ensures business are able to continue in the event of catastrophic occurrences which does not only save money for the business but ensures employees jobs remain secure at a time of huge uncertainty. We also arrange relevant life insurance for Directors allowing company owners to provide themselves and their families valuable life insurance by setting the policy up through the company, this adds value by improving tax efficiency as the premiums are business deductible expenses and the savings can be illustrated in £’s and pence and can be significant. We also make referrals to professional services firms when relevant by leveraging years of experience cultivating trust-based relationships with professional services firms, particularly solicitors and accountants. We have invested our considerable time and effort forging these relationships so our clients don’t need to spend the time finding and assessing suitable firms. By understanding your specific situation, we can also better identify the most appropriate firm and individual to meet your needs.
• Tax Efficiency – Making sure we consider tax reliefs and allowances, enables clients to maximise their after-tax wealth. If you don’t take advantage of annual tax reliefs, then you could quite literally be paying more tax than you need to. We can evidence the amount you have potentially saved through our planning.
• Market and Product Research and Analysis – To recommend the most suitable solutions for our clients, we use professional tools to conduct research and analysis of provider and product solutions. This ensures we can make recommendations to best meet your needs and goals. We are currently spending circa £7,000 per annum on a suite of these professional tools required to conduct research and analysis of client solutions.

Non-Advisory Services

We offer other non-advisory services, such as:

Life Goals Planning

• To help clients consider their short / medium / long term goals in life and provide financial solutions to help them in their plans to achieve these goals.

Financial Coaching

• Financial Coaching can add value at various times throughout the financial planning journey and help you to make considered financial decisions.
• Amounts to invest to meet your goals
• How and when to release capital or take income
• Reassurance in volatile market conditions
• Understand how markets work and the journey you can expect
• Understanding legislation and tax changes
• Financial coaching – professional sense check – behavioural guidance – we help to take the emotion out of financial decision making and helping clients avoid falling into common mistakes.

Education Planning

• Many clients want to support their children through university and we can help you put in place a financial plan to meet these costs in full or in part. This will provide you with the knowledge and peace of mind that this very important goal is in hand and will be reviewed year on year to make sure you are on track.

Market Briefings and Investment Updates

• We provide monthly investment updates and quarterly newsletters to keep you abreast of current market conditions and relevant regulatory developments so our clients don’t need to spend the time finding commentary and assessing the trustworthiness of the source.

Maintaining professional competency – Annual CPD

• As a Financial Planner, each year we evidence the learning activities we have completed to maintain competence in our role and improve our knowledge. This allows us to continue providing suitable and up to date advice to our clients, year on year.

Investment Proposition and Philosophy

Our investment proposition is researched to provide the most suitable investment solutions to cater for your needs.  We choose to outsource investment management to professional money managers.  Our skill is in selecting which ones to blend together to build portfolios aimed at meeting your goals.  We have the time and professional skillset to monitor your investments and the investment managers. To make sure we stay on track to meet your goals. We tend to your investments while you give all the other things in life your full attention.

The Peak Life Financial Planning Portfolios offer all our clients the opportunity to have a carefully managed portfolio that is built and managed to suit the needs and characteristics of our clients.

The portfolios are overseen by our Investment Committee which:

1. Defines the objectives for each portfolio
2. Sets the mix of assets within the portfolio
3. Appoints a manager to implement the strategy

The Peak Life Financial Planning Portfolios have been developed to Peak Life Financial Planning’s objectives and constraints and are purpose-built for the needs and characteristics of Peak Life Financial Planning’s clients.

Selecting the right portfolio

We will assess the suitability of each portfolio and ensure it is appropriate to your return requirements, and risk profile.

The portfolios are managed by the appointed manager on a discretionary basis, which means that the portfolio manager will make decisions on your behalf as regards adjusting the risk exposure of the portfolio to adapt to changing conditions.

Ongoing risk management means that each portfolio is kept up to date with changes in the market and economy.  This can help keep your portfolios on track for their objectives.

By utilising a managed portfolio, we can ensure that any changes around the mix of assets and fund choices are made consistently for all clients at the same time ensuring that your portfolio keeps pace with what’s happening in the markets as well as best ideas for fund selection for each market.

The funds within the portfolios consist of diversified, high quality funds from some of the world’s largest asset managers.  Our appointed manager selects funds from these firms and others like them to match the asset mix that is appropriate to your risk profile and adjusts that mix to adapt to changes in the markets.

Our appointed manager screens and selects a combination of different types of funds for each asset class, for certain characteristics set out in the agreed investment guidelines.  Some funds are selected for the potential to outperform their respective benchmark, other funds are selected for their excellent value for money, other funds are selected as diversifiers that can help mitigate overall portfolio risk. 

A fundamental part of our philosophy is the belief that the main driver of portfolio outcomes is allocation across a broad range of asset classes. Industry-based research has shown that asset allocation, rather than stock selection, is the main driver of portfolio returns. Our proposition focuses on developing asset allocation strategies to achieve specific portfolio objectives which ultimately connect to client needs.

We use the portfolio’s own benchmarks as a measure of market performance as this will allow the most like for like comparison on performance and therefore the value that is added by adopting this process. That being any outperformance of the portfolios benchmark will identify the value added in monetary terms.

Our investment proposition is researched to provide the most suitable investment solutions to cater for your needs. This ultimately gives our clients great comfort that their investments are being managed by investment professionals and their financial plans are being looked after by highly qualified financial planning professionals.  This is the value that a relationship with our firm provides. It’s what our clients pay for.

Our approach means that our time is focused on you. We let the professional investment managers monitor the markets on a day-to-day basis.  We feel this combination delivers you the best value.

We believe this approach allows our financial planners the greatest opportunity to spend their time and energy focused on you and your family’s goals and objectives, where we add the greatest value. 

Rebalancing

• Auto-rebalancing of your portfolio takes place on a regular basis, to reset your investments back to your agreed initial investment mix. We will also proactively consider the tax consequences of these actions and will ensure we are taking advantage of any tax reliefs or allowances that you are entitled to.
  
  
• This is a proactive investment management service which helps to keep your investments on track to meet your goals and saves you money through utilisation of your annual capital gains tax allowances.

• It helps to ensure your investments and selection of funds / asset classes remain aligned to your chosen attitude to risk and capacity for loss.

• It helps to reset your investments on a regular basis back to your strategic investment plans, by adjusting dynamically for swings in markets.

Technology

One of the reasons we chose to work with Benchmark, was their technology.  Something they have won numerous awards for.  Ultimately backed by Schroders, we have every confidence that the security of our client’s information within Benchmark’s client management technology systems, is in very safe hands.  This decision is something we know our clients expect us to get right. It’s incredibly important to them and a reason they feel safe working with us.

Our Staff / Adviser Training and Development Programmes

The firm fully endorse and are committed to the development of knowledge and skills levels.  The standards and commitments of the firm’s intentions are documented in the firms Training & Competence Plan.

With the support of our compliance consultancy firm all advisers, paraplanners and admin support in the future will undertake ongoing structured T&C activity with a view to achieving or maintaining competence.  Our compliance consultants will carry out regular audits including file checks and will provide feedback and recommendations to the Senior Management/Principal.  Any training needs identified will be acted upon by the Firm and/or individual and documentation held to confirm that the training has been completed and to a satisfactory level.  The Firm agrees to follow recommendations made by our compliance consultants in the performance of its duties.

Summary

Working with a professional financial planner provides expertise and peace of mind. We build multi decade trust-based relationships with our clients.  We get to know what really matters most to them and their families.  What they are trying to achieve in life and help them to achieve it. Our relationships are often the longest standing relationships our clients have.  They lean on us for so much more than the financial plans we cultivate and manage for them.  This doesn’t happen without trust.

Once the financial plan is active, our ongoing advice and service will keep clients focused on meeting their life goals and objectives. 

Our ongoing advice and service fee is 1% each year, and includes the financial planning and wealth management aspects of our relationship with clients.

At Peak Life Financial Planning, fair value is not just a buzzword; it is a fundamental principle that guides our interactions with clients. We are dedicated to delivering fair and transparent services, providing investment recommendations based on thorough analysis and assessment of fair value. We continually review our practices to ensure they align with evolving market conditions and regulatory requirements. By prioritising fair value, we aim to build long-lasting relationships with our clients, based on trust, transparency, and mutual success.

Considering all areas included in the assessment of value, we believe the service provided is demonstrating value overall and our service proposition along with this value statement has been approved by our network, Best Practice IFA Group Limited.