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What is your business background?
I joined the life industry in early ’80s London and have a background in investment operations. I have worked for a number of life companies across the UK, and joined the offshore life industry in 1995. Various strategic deployments across the Axa Group have broadened my management and market experience, including helping set up what is now Architas Multi-Manager.
You were promoted from chief operating officer to managing director of Axa Wealth International in July, as the company combined its COO and CEO roles. What are your objectives in this new position?
Axa Wealth International has had significant market share in the offshore space for many years now, and a prime objective of mine is, of course, to maintain this position. It is also important to me to continue to expand our Dublin-based sister company’s horizons across the European market, to diversify our current distribution base.
I am also keen to make sure that we are fully prepared for the post-RDR UK market, ensuring that we continue to service the demands of our advisers and customers.
Ultimately though, I want to create an environment where our people have the maximum opportunity to develop and flourish, and where they feel all the hard work we ask of them is worth it.
Axa Wealth announced this year that it would bring its onshore and offshore platform distribution together. What were the key reasons behind this decision?
The decision followed feedback from advisers that they would like fewer contact points with the overall Axa Wealth business. What we have done has simplified the distribution strategy and provided IFAs with a more cohesive and comprehensive advisory support and sales service. Combining the main distribution businesses under a single structure completes the next stage of Axa Wealth’s programme to enhance its IFA service and support model. We want to be as easy as possible for IFAs to work with, and this move goes a long way towards achieving that.
How much progress has the company made so far?
The markets have been tough recently, which leads to intense competition for new business opportunities. Despite these tough market conditions, Axa Wealth International has fared extremely well and is having a successful year.
Market conditions like these definitely stretch the competition – after all, there is only so far you can negotiate on prices before business simply becomes unprofitable. We maintain that quality products come at a price, and we strive to maintain a premium position among our peers – what I dub ‘the John Lewis approach’.
To maintain this, we work hard to offer the highest standard of service we can, provide quality support for our product range, as well as concentrating on our new developments.
It is all too easy to focus on the future and lose concentration on the matters that are really important to our advisers and customers today.
What are the next stages in the process?
The development of Axa Wealth International’s European proposition is top of my list at the moment. We are keen to get something out to market before this year ends, but this will be dependent on us reaching the level of quality and robustness in the proposition we require before delivering it to our business partners.
What are the biggest challenges facing Axa Wealth International over the next five years?
The Retail Distribution Review is undoubtedly a distraction, albeit one that will help to restore the reputation of our industry and deliver real positive outcomes for investors.
Axa Wealth has some ambitious business targets through to 2015 and we are fully committed to supporting those. This will involve negotiating the evolving landscape of platforms, cross-border business regulation and heightened scrutiny by worldwide tax authorities.
But my biggest personal challenge by far is to ensure that we maintain a vibrant, rewarding and positive environment in these challenges for the talented and committed people that work for Axa Wealth International.
How will the business have changed during that period?
I think it is likely that in the future, more business will be written on an ‘execution-only’ basis than today, with perhaps only the more wealthy being willing to explicitly pay for financial
advice. The irony is that this is a little at odds with the spirit of the Retail Distribution Review, with the lower wealth end of the market potentially missing out on valuable advice.
Our business will have to change during this period to accommodate the changing markets and we must embrace this change. Companies that think they can continue to operate as they have been doing will find it difficult to survive.
How will Axa Wealth International differentiate itself from its competitors?
It will continue to offer a top quality service and support for its advisers and customers. It will continue to push the boundaries and explore new markets. This is an exciting time in our development and I look forward to leading the company through the changes ahead.
What do you see as the key challenges facing the industry?
There are many challenges facing the offshore industry at the moment, but I think the greatest challenge, certainly for UK markets, will be the Retail Distribution Review. There is no doubt in my mind that this will dramatically change the face of the UK market. Product providers into the UK may need to look at different routes to market, and different markets altogether, and this is something Axa Wealth International is well positioned for.
Other challenges include the increasing cross-border tax reporting and regulatory requirements, which will no doubt cause significant burdens and legal challenges for everyone across the offshore industry. The
recent US FATCA legislation and EU Savings Directive are looming in the background, both of which could impact our industry dramatically and absorb significant resources.
We are working hard on all these matters and making sure our thoughts are articulated to the relevant industry bodies and trade associations.
In what ways do you expect the industry to change over the next five years?
I believe the offshore market will continue to grow. However, I can certainly foresee that there will be some changes following RDR. I think depth of relationships with advisers will become more important, and, ultimately, there could be a rationalisation of product providers, as the cost of doing business in various markets starts to outweigh the small margins that some companies appear to be prepared to accept at the moment.
How do the UK and international markets compare, in terms of challenges and opportunities?
Our history is predominantly in the UK market, so we are well versed in the various challenges that have come and gone down the years.
The intense regulation of the UK market and its overall maturity has been a great learning ground for the increased regulation and disclosure that will inevitably come to more developed international markets.
We believe that there are real opportunities in international markets but remain cautious in our approach, only wanting to expand into regions that we are confident are sustainable, and where we can maintain our high standards of service to advisers and customers.
What are your likes and dislikes about the offshore life industry?
I find the offshore industry demanding, yet innovative and ultimately very satisfying. I have had the pleasure of working with some very talented and supportive individuals.
I still get frustrated by the reputation the offshore market has with many advisers and consumers. Offshore bonds are now a good value, entirely legitimate tax planning tool.
Describe your management style within ten words.
People want to succeed; encourage them and so will you.
Who are your business heroes?
My first boss in the industry, Roger Engledow at Lloyd’s Life, showed me that you can work yourself and those around you very hard, but still do it with great humour and empathy. I have tried to maintain that mind-set through my career.
What is the hardest business lesson you have learned?
Not everyone will naturally share your dreams, goals and enthusiasm.
What is the best piece of business advice you could offer someone?
Be brave and believe in yourself and your abilities; keep wise counsel but never discount the views of others, however contrary to your own they may seem. Often there is someone out there with a stronger solution than the one you have arrived at.
