Fraser Jack: 00:09 Welcome to the Goals Based Advice Podcast where I speak to pioneers of the new world of Financial Advice. I’m your host Fraser Jack and want to thank you so much for tuning in today. We are on tour currently from the FPA Congress in the beautiful city of Melbourne, coming to you from the Kombi van, and I’ve just dragged Andrew Talbot into the back of the van who has just come off stage. Welcome Andrew.
Andrew Talbot: 00:34 Hi. Good to be here.
Fraser Jack: 00:36 Tell us a little bit about yourself.
Andrew Talbot: 00:38 Yeah, so I’m based in Singapore and I run the fee based part of Expat Financial Planning. So we deal with, as it says in the name, ex-pats, so very transitional clients. They’re only there for a few years and then they move on to somewhere else.
Fraser Jack: 00:56 So it expats from Australia or expats from UK, or...?
Andrew Talbot: 01:00 Yeah, from anywhere really. So the definition of an expat is that you’re just not living in your home country. I think there’s about 238 million, if you included every single country moving from one area to another.
Fraser Jack: 01:16 So there’s a fair sized market?
Andrew Talbot: 01:18 Yes, it’s quite a big market.
Fraser Jack: 01:20 Very good. Now tell us, you’ve just come off the stage, tell us about the presentation you’ve just done and what you are part of.
Andrew Talbot: 01:27 We were part of a panel, so there was four of us, Janet from South Africa, Phil from the UK and Mitch Anthony from the US and myself and it was to talk about the international experiences that we have. I know guys are going through some regulation change and it’s the experiences of the panel is to say that it’s probably not as big a concern as maybe you think it is.
Fraser Jack: 01:52 Yeah, it feels like a big concern but I guess we’ve been through it before and then it has been fairly prominent in the other parts of the world as well.
Andrew Talbot: 02:02 It’s just what’s going to happen, isn’t it? I’ve noticed being very international, we tend to look at what other countries are doing and what other really good firms are out there and what, what they are doing, and then we copy them or we just take parts from their service and their proposition. There’s, there’s a trend around the world for financial planning to move into this space and the regulations really backing it up, but it’s there as the minimum standard really. So it will happen in other countries and it will continue to happen.
Fraser Jack: 02:38 So you feel the rest of the world will sort of follow suit with what we’re doing?
Andrew Talbot: 02:41 Absolutely. Yeah. I think so. Some countries are going down different paths, but eventually they’re all going to end up in the same international standard of financial planning and advice I think.
Fraser Jack: 02:54 And tell us, tell me about your practice because you’ve got, how many advisors are there?
Andrew Talbot: 02:58 So a part of Globaleye, which is a sort of a bigger firm. So there’s offices in Dubai, Singapore, and then we just run this fee based part of it. So different way of giving advice to clients that wasn’t normally available in the offshore world or the international world. So we use cashflow forecasting is the core. We use Voyant as our main provider and we charge a fee for that service, and it’s something I think that’s definitely going to grow in the future.
Fraser Jack: 03:39 So fee for cash flow, do you do risk?
Andrew Talbot: 03:42 Yes.
Fraser Jack: 03:42 And, and you charge a fee for that?
Andrew Talbot: 03:44 Risk is commission.
Fraser Jack: 03:46 Yep.
Andrew Talbot: 03:46 There isn’t another way to do it in Singapore.
Fraser Jack: 03:48 Yeah. It’s an interesting conversation that we’re sort of having here at the moment around risk, especially for specialist risk is a different scenario when it comes to fee, but for risk for, you know, your moms and dads and how do we then do fee for risk.
Andrew Talbot: 04:04 Yeah. I don’t really know how you wouldn’t do it by fee. I think it wouldn’t be enough take-up. There’s obviously an insurance gap isn’t there around, definitely around the world. So how do you, fill that, and I think, yeah, the commission on insurance. I think that’s seems to be the way that it works in other countries.
Fraser Jack: 04:26 Yeah, and how does it work where you are?
Andrew Talbot: 04:27 It’s exactly the same. It’s commission for the insurance.
Fraser Jack: 04:31 Is it the similar ratios or like 80:20 type...?
Andrew Talbot: 04:35 In what sense?
Fraser Jack: 04:36 Upfront or level or is it...?
Andrew Talbot: 04:39 Different ways to do it. It’s depending on what your terms of business is, I think with the insurance provider.
Fraser Jack: 04:43 Yeah. Yeah, because we’re sort of going through the process here whereas it’s being reduced over time.
Andrew Talbot: 04:48 Right. Yeah, okay.
Fraser Jack: 04:48 So it’s an interesting one to, to understand how it’s going to work out in the long term.
Andrew Talbot: 04:53 I think as long as you got the transparency of it, then that’s where you should start, right? That’s the main focus. Yeah. How much it’s going to cost and where is that conflict of interest? That was one of the key points we sort of discussed on the panel was like if you are going to have- how you’re going to get paid, you’ve just got to be transparent on it. There isn’t really a right answer, in some ways.
Fraser Jack: 05:17 Yeah, it’s a very ones- it’s one that a lot of people are grappling with at the moment, so who knows how it’ll turn out, but I guess we’ll wait and see. Now tell us what are you working on in the future? How does your 2020 look at the moment?
Andrew Talbot: 05:29 We are trying to define our process even more. So that’s our main focus and use as much technology as we can to save time and cost and be more efficient and see if we can give a better service. I think that’s what we’re always striving to do.
Fraser Jack: 05:46 Yeah. So that efficiency is a key topic, isn’t it, when it comes to technology? How do we make these, you know, slightly better for the, well I guess the more efficient we make it, the less we have to charge our clients.
Andrew Talbot: 05:56 Yeah, I don’t think it’s going to replace the advisors and the technology itself, but it’s certainly will compliment it and there is, I mean I’m looking around this sort of conference floor and there’s lots of technology providers or FinTech offering help. They’re not trying to replace the financial planer, they’re just trying to help make that the, your job easier, and the job that we really like doing is speaking to clients, building those relationships. If you can take the less interesting parts of that away because technology fulfills it and it’s certainly something I’m [inaudible 00:06:34].
Fraser Jack: 06:34 Yeah, that was certainly a theme, wasn’t it, of the opening keynote? The idea that it’s not about to replace jobs, it’s about to replace tasks and mostly the tasks that nobody wanted to do. The boring-
Andrew Talbot: 06:45 Loads of those. Loads of those in financial services.
Fraser Jack: 06:46 Certainly is. So, tell us about, what ideas and tips do you give to planners? What is the one thing that planners need to do with change when it comes to next year?
Andrew Talbot: 06:57 I think know where you want to be. So set those goals as a business or as a financial planner to say, this is where I want to be in three years, five years time, and then work backwards. I don’t think you need to be three or four steps ahead of your competition or the professional or the industry. You just need to be half a step. So it’s just doing what we should do for clients. We map out this plan and then we just implement it as much as we can and make changes when regulation changes or something changes in the market.
Fraser Jack: 07:30 Yeah. So treat yourself like you treat your clients.
Andrew Talbot: 07:31 Absolutely. Yeah.
Fraser Jack: 07:33 So tell us, if someone wants to keep chatting to you, how can they get hold of you?
Andrew Talbot: 07:37 LinkedIn, website, ExpatFinancialPlanning.com, Twitter, I’m on Twitter.
Fraser Jack: 07:43 Fantastic. Thanks very much for coming on the show. I appreciate it.
Andrew Talbot: 07:45 No worries. Thanks.
Fraser Jack: 07:47 Thanks, Andrew.
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Disclaimer: This document is a transcription obtained through a third party. There is no claim to accuracy on the content provided in this document, and divergence from the audio file are to be expected. As a transcription, this is not a legal document in itself, and should not be considered binding to advice intelligence, but merely a convenience for reference.