Mr Ferguson stressed how the latest conversations with the FSA were highlighting the need for businesses to demonstrate that their risk management thinking was visible and represents the real risks to the business.

He also suggested that the key ethical behaviours of a CFP^CM professional need to be reflected through the ‘business supply chain’. Members then discussed the feasibility for small adviser firms to prepare and document things that would require such a significant resource.

While agreeing that documentation was important, Mr Ferguson demonstrated how it becomes even more important as the business grows using Nucleus’ business as an example, which is now a world away from what it was in the early days. However if the planning firm owns its proposition, it is vital that every part of it supports and aligns that proposition. If not, there is a danger that, in future, if one part falls over (as has occurred with firms such as Arch Cru, Keydata and others) then the whole of the planning business is at risk.

The second session was from Graeme Cowie of UBS who talked through case studies for the use of lending as a planning tool, as practiced by family office- type providers. Loans secured against investment assets may be particularly useful where there are large gains (offshore bonds or CGT) or specific reasons where the sale of assets is not wise.

Branch chairman Chris Bowmer CFP^CM said: “Our thanks go to both speakers for making this a useful meeting. David’s presentation was well received as it continued to identify the transition from planning practices to real businesses and the fact that those who grasp the change have a lot to gain. Although it was less interactive, Graeme’s session gave us some interesting insights into alternative planning ideas we could use with clients where traditional options may not be appropriate.

“Our next and final meeting of 2011 is on 30 November. All are most welcome!”