Each month Financial Planner questions a leading Financial Planner to ask them to share best practice from their businesses and the story of how they and their colleagues built their company. This month we talk to Jason Holmes CFP^CM from Lumen Financial Planning in Northern Ireland.
Financial Planner: You have been on the IFP Accredited Financial Planning Firms register for over a year now, how it has benefited your firm?
Jason Holmes CFP^CM: It has benefited us in a number of ways but mainly through the process of applying and the networking with like-minded firms; discussing ideas and learning from them. We have also used it as a bit of leverage with clients and professional connections as there are only two Accredited Firms in Northern Ireland.

FP: Did you attend the IFP Accredited Financial Planning Firms conference in March? How had it developed from 2012?
JH: Yes I did. It was bigger for a start as there are now more firms coming on board but also it was more focused on our specific needs as the agenda has been shaped by the Accredited Firms themselves rather than the IFP. It was really interesting especially the roundtable discussions.

FP: How did you first get into Financial Planning and what attracted you to the profession?
JH: I started off in general insurance with Willis and then moved to the life and pensions department when there was an opening for a financial consultant. I have always been interested in people (some would say nosey!) and I enjoy working with figures and numbers so it was a good mix for Financial Planning.

FP: Why did you decide to set up your own company?
JH: In 2007 I attended some events in London run by the Dealers Group and through this came into contact with the IFP and some of its members. There was a lot of emphasis on Financial Planning. The firm I worked in was more product focused and new business focused.
I believed that the future was service-based Financial Planning focusing on client's objectives and I felt the best way for me to do this was to set up myself and offer it.
I looked at doing it with other firms and people but I was always compromising something so I set up myself. There were also work/life balance and income advantages but the main reason was the desire to do it in a better way.

FP: How has your team and company changed since the launch and what has the journey been like? How many clients do you have and what's the annual turnover?
JH: The team has grown and Lumen has become more focused on the areas that we are good at. At the start cashflow was critical so we took anything (within reason) but now we are trying to focus on a couple of niches. The journey has been good and I have learnt lots. People are very generous with their ideas, comment and encouragement; thank you for that. It's been twice as much work as I thought but it has been good.
We have about 65 active clients and our projected turnover is £170,000 for the year to the end of June 2013.

FP: What type of Financial Planning do you offer to clients and what are your fees/charges?
JH: We focus on holistic Financial Planning rather than on any one particular area and then we deal with whatever comes out of that Financial Planning review. I have an interest in succession planning and exiting from a business and the planning for that and alternative income streams and so on.
We charge a financial plan fee of between £750 and £1,500, an implementation fee of around £1,000 per contract and ongoing fees of one per cent per annum. These may increase though with the complexity of situation.

FP: How do you find new clients and what have been some of your best practices in terms of sourcing new clients? Please give examples of what works most effectively?
JH: I have three main sources; networking, professional connections and word of mouth.
We have a close relationship with a local accountant who is very switched on and forward thinking from a business point of view. He refers a number of good people, we see them in his office and so most of them become clients.
It works very well as he is business focused and is growing his business and sees the Financial Planning as a good addition. We also pay him part of the initial and ongoing fees so while not ideal for us in terms of revenue generation, it does mean we are getting a lot of good referrals and he puts effort in to make sure that they following through on recommendations.
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FP: Are there any distinctive aspects to working in Northern Ireland?
JH: Not on a day-to-day basis however at times some issues arise. One of these is the fact that we live close to another country (the Republic of Ireland) that has a different tax regime and legislation across many areas. So a prospective client may have property in the South or may have old pensions there from a previous job.
And it becomes difficult trying to find an accountant who will give specific advice on things, for example, a client who has a family farm in the South but he now lives in the North. On death if the farm transfers to his wife who also lives in the North, is IHT payable or not? What about CGT? If he lived on the farm in the South, would it be different?
Some clients will also have employees based in the South and yet want them to be part of the group life scheme. This is OK for one or two but any more than that and it becomes an issue.

FP: In terms of running your business, what software applications do you use (particularly in reference to Financial Planning and back office software) and what sort of internal processes do you run in brief to ensure everything runs smoothly?
JH: We use Intelligent Office but I remain to be convinced about it and NetDocs for file storage. We use cashflow modelling extensively and use our own system mainly but have flirted with Voyant and want to use it more.
We have spent time mapping our processes and are just undertaking an overhaul of our review process to try to systemise it better, to save time and make it work smoother.

FP: What has been your greatest source of achievement in running your business and what are you proudest of?
JH: One of our greatest achievements is growing the turnover, profit and recurring income each year of the last four years through the recession. That, and starting a business and sticking to principles through tough times. I'm also really proud to have achieved both CFP^CM professional and Chartered status.

FP: What do you see as the main threat to your business and why?
JH: There are two main threats, firstly the Financial Conduct Authority and the ever changing goalposts of regulation and the cost of it, including the Financial Services Compensation Scheme.
Secondly, that the competition catches up with us and Lumen loses its differentiation factors as true Financial Planning becomes more popular. We have to become more innovative and keep ahead.

FP: If you could change one thing about financial services, what would it be?
JH: I'm caught between two thoughts so I'll give both. Stop Government's continual tinkering with pensions to allow people to have more confidence.
Only qualified Financial Planners should be allowed to call themselves a Financial Planner. Too many people who are not Financial Planners and who are not doing cashflow modelling are calling themselves Financial Planners. The title needs to be more strictly regulated; a bit like dietician and nutritionist.

FP: Now we are in the post-RDR world, what is the next step for Lumen Financial Planning and do you think RDR has changed anything?
JH: RDR has levelled the playing fields in terms of many advisers having to lift their game so as such they are catching up on good Financial Planning firms. We need to work hard at innovating and keeping ahead to make sure we stand out.
Next step for Lumen is to focus on the next 30 clients being ideal clients who bring an increased level of income to the firm and so lift the overall average income per client. What do they look like, who are they, where are we meeting them and what exactly are we doing for them that they will value and want to pay our fees for?

FP: What do you like doing in your spare time outside of work?
JH: I enjoy family and friends and spending time with them. At the moment I'm trying to train for some sporting events so that is a focus also. My wife Sharon and I have worked with young people through church and the community for a number of years and I enjoy doing that. I also volunteer through Young Enterprise in Northern Ireland and enjoying doing some work in schools through that.