The chance to develop fresh IFA talent was what attracted Grant Hughes to his latest role, which he says is the “biggest opportunity” he has ever had. Since May, the chartered financial planner has led the launch of a new UK-based financial advisory unit, Mercer Jelf Financial Planning.
Mercer Jelf is a partnership of professional services firm Marsh and McLennan’s (MMC) two subsidiaries: Mercer, the world’s largest human resources consulting firm; and the Bristol-based IFA Jelf Group, which was acquired by MMC in December last year.
Providing financial advice to UK corporates and their employees, the new firm draws on the Jelf Group’s experience with high net-worth individuals, business owners and senior executives, and Mercer’s expertise in employment services.
Since joining, Hughes has developed a Mercer Jelf offering in line with Mercer’s in-house digital platform, Mercer Harmonise, which it launched last year to help employees take control of their needs in terms of health and wealth (see boxout).
Confident that the two subsidiaries “complement each other very well”, the head of financial planning says the success of the Mercer Jelf proposition now depends on attracting high-calibre advisers who can cater to corporate clients, such as senior executives at FTSE 100 companies.
Health and wealth
“We have got clients who, with recent pension changes, need advice and expertise in that area. What we are looking for is advisers with that expertise,” says Hughes.
He says that all Mercer and a third of Jelf advisers are chartered, but stops short of specifying how many of the new partnerhip’s team of 30 advisers currently fall into that category. Instead, Hughes says the business is well ahead of the targets announced by the Chartered Insurance Institute (CII) last year. From July 2017, the CII will require at least 25% of a firm’s advisers to be chartered, rising to 50% by January 2020.
“We are a chartered financial planning business and we intend to develop that aspect of the business, so we are looking for good quality chartered advisers,” he says.
Hughes says many advisers find their expertise tested when working in the corporate arena, particularly in the aftermath of the UK’s pension freedoms that were introduced in April last year, giving people unrestricted access to their savings.
“A number of people have the knowledge to advise of these changes but they rarely use it. At Mercer Jelf we use that knowledge on a regular basis, so the calibre of our people is very strong,” he says.
While supporting the pension reforms, Hughes concedes that “with greater freedom comes greater responsibility” but says that despite the doomsday predictions, many of the firm’s clients are not withdrawing their pensions in “one fell swoop”.
Instead, in line with the Association of British Insurers’ (ABI) latest research, the majority of savers are taking a “sensible approach” to withdrawing money from their pensions. The ABI found that 57% of people took out 1% or less during the last quarter.
Overall, since reforms took effect, ABI research shows £8.2bn has been withdrawn, £4.3bn was paid out in lump-sum payments averaging £14,500, while £3.9bn was paid out via drawdown payments that average £3,800.
