RGP Consulting (UK) Limited South East Regional Office: Phoenix House, Hastingwood Road, Hastingwood, Essex CM17 9JT Office: +44 (0)1279 899 002 Fax: +44 (0)844 567 7389 Registered at Trinity House, Sewardstone Road, Waltham Abbey, Essex EN9 1PH Registered in England No. 6529747. RGP Consulting (UK) Ltd is an Appointed Representative of Eden Associates, which is authorised and regulated by the Financial Services Authority

Private 3rd Party Pension Sponsorship (3PPS) unveiled by pension & investment strategist firm 17,000 Research & Development hours concludes at RGP Consulting (UK) Ltd/Wealth Connection On the 4

th October 2010, the BBC’s Panorama programme delivered a damning verdict on the pensions

industry. However, it surprisingly stopped short of tackling two of the biggest problems:-

the cost of delay, and

the impact of insufficient funding For most Pension specialists the main issues are not really about which pension provider you choose, the AMC or even the investment style. Whilst charges and investment returns do clearly influence the outcome of any investment, they will always remain just a sideshow to the real influencers in any long-term savings strategy; how much is actually paid in and how long it remains invested for. At RGP Consulting (UK) Ltd (RGPC), we have sought to focus on ways to deal with the two biggest influencers in long-term savings strategies. When it’s cheapest and less financial risk to save for retirement i.e. 40+ years to retirement, you simply can’t afford it. By the time you can afford to pay in what you needed to in your 20’s and 30’s ,it’s not nearly enough in your 40’s because you only have 15-20 years to build up a fund. This is the practical world the average saver lives in and the biggest dilemma, to date, the industry has failed to find an answer to without having to jump into the hedge fund markets. As a specialist pension and investment firm dedicated to finding innovative ways for our clients to safely create genuine new wealth, the past few years at RGPC have been committed to trying to find a solution to a savers true worst dilemma – ‘the cost of delay’. Our senior management team have now completed over 17,000 research and development hours, met with over 100 financial services professionals from 40+ regulated firms and worked with an FSA and regulatory Barrister at an award winning chambers in the heart of London’s legal district since July 2009. Following an in depth review of the coalition Government’s recent draft proposals for pension funding, we are delighted to announce that Private 3

rd Party Pension Sponsorship (3PPS) will be possible with effect from 1

st

December 2010. Essentially, 3PPS involves a private sector finance firm lending capital to individuals, who are then required to make a pension contribution up to the maximum permitted levels. The individual can then free up normal regular contributions to their pension and instead, redirect them to their ISA. This effectively creates the opportunity for two investment strategies to exist together, rather than just a single strategy as is the current mainstream solution. In theory, two investments should deliver better results than one. The real skill with 3PPS strategies is in the negotiation with the private finance firm lending the capital at outset and the underlying investment choices taken to help deliver an achievable commercial result for all interested parties at maturity. That’s where RGPC has amassed highly valuable expertise. Our research confirms that it should be possible for savers with at least 20 yrs to NRD to use 3PPS to substantially reduce the overall cost of a target income at retirement, or substantially increase the overall income payment in retirement. All 3PPS solutions should therefore help achieve even greater results for the tax payer, with an average saving in tax relief worth around 30% assuming normal market conditions. Therefore, potentially, 3PPS solutions offer enhanced social stewardship and could be used successfully to reduce dependency on the state.

RGP Consulting (UK) Limited South East Regional Office: Phoenix House, Hastingwood Road, Hastingwood, Essex CM17 9JT Office: +44 (0)1279 899 002 Fax: +44 (0)844 567 7389 Registered at Trinity House, Sewardstone Road, Waltham Abbey, Essex EN9 1PH Registered in England No. 6529747. RGP Consulting (UK) Ltd is an Appointed Representative of Eden Associates, which is authorised and regulated by the Financial Services Authority

A 3PPS deal can take any commercial format that the participating firms wish to offer an individual or employer. However, in our opinion, the most popular formats will be those that tend to offer low risk to investors and provide a fairer deal for savers. Our research indicated that both advisors and their clients are fed up of chasing high yielding investments, as often these were more likely to fail than to succeed. We also established that all the negatives frequently raised by consumers about pensions, were conversely highly attractive to professional investors. For example, the long term nature and commitment of pension investments, so often the negative focus of consumer dislikes, can actually provide the perfect investment conditions to help reduce risk. This aspect overlaid into certain investment opportunities is highly complimentary. A good starting point when considering alternative approaches for pension funding is therefore addressing much of what the BBC’s Panorama programme highlighted. Our primary focus when selecting a 3PPS strategy for a corporate or individual would be to find a solution that offers some or all of the following key benefits:-

Little or no investor capital exposure

Returns commensurate with little or no risk exposure

Risk free capital finance terms compliant with CCD regulations

Low or zero interest rate

No monthly repayments during the investment term

Investment charges that only apply when results are delivered

Freedom to save regular amounts into an ISA provider of choice or EMIS, Share Save etc

Low cost SIPP charges and unrestricted investment choice i.e. full RPSM investment mandate (no restrictions)

Commitment to provide ongoing funding support eg 5 or 10 year sponsorship

RDR & TCF compliant terms

Strategies that are capable of delivering social stewardship The introduction of 3PPS provides a genuine solution to the problems faced with cost of delay. They are also capable of addressing many of the negative issues frequently featuring on award winning financial blog sites from irate consumers. As we have seen recently, there are no guarantees that valuable pension planning solutions will retain the generous tax incentives provided by the government.

Once 100% of salary pension funding finally goes, how many savers will wish that they had taken advantage of their wasted annual allowances? Which scheme member would not appreciate the opportunity of receiving a maximum pension contribution worth up to 100% of salary this tax year? Fortunately, we will have a solution for high earners to access with effect from 1

st December which will help

savers make full use of their allowances, rather than wasting such a highly valuable tax incentive. Ultimately, we can find no positive outcome for a higher rate tax payer to suffer guaranteed tax losses over that of utilising risk free capital to secure a major investment asset. It is essential that Employers and Employees earning between £55,000 to £130,000 this tax year learn about the basics of 3PPS before time runs out. It is even more relevant to professional pension and tax advisors to understand, as it could inadvertently lead to clients suffering negative outcomes through unutilised tax allowances. For further information, please contact Darren Say, Managing Director at RGP Consulting (UK) Limited. Telephone 0800 567 73 89 or email darren@rgpconsulting.co.uk

RGP Consulting (UK) Limited South East Regional Office: Phoenix House, Hastingwood Road, Hastingwood, Essex CM17 9JT Office: +44 (0)1279 899 002 Fax: +44 (0)844 567 7389 Registered at Trinity House, Sewardstone Road, Waltham Abbey, Essex EN9 1PH Registered in England No. 6529747. RGP Consulting (UK) Ltd is an Appointed Representative of Eden Associates, which is authorised and regulated by the Financial Services Authority

About RGP Consulting (UK) Limited / Wealth Connection Formed in 2007 with a purpose of revolutionising the way savers plan for retirement, over 75% of our time has been dedicated to Research & Development since launch. We have combined over 100 years of collective in-house, frontline financial services experience with an unrivalled commitment to develop innovative investment strategies that focus on genuine new wealth creation. Ultimately, we are determined to deliver more of what our clients want and less of what they don’t. In our opinion, the existing tried and tested structure for long-term pension planning in the UK has failed to deliver adequate results. The negative sentiment shown by individuals in the UK today bares testament to this fact, so revolutionary thinking is required. We passionately believe in trying to secure a fairer deal for investors. For example, we do not believe it is right that an investor should suffer capital losses for poor investment decision making. At RGPC we offer a client centric proposal where clients can choose to only pay for advice that delivers positive results. Furthermore, we will only make profit when the advice we give, makes money. In our opinion, if an advisor holds themselves out as an investment specialist, trying to create wealth from existing assets, then earnings should reflect the investment journey of the client. Of course, not everyone within our industry will agree with this view, but our research indicates consumers feel let down, so we do something about it internally. We are prepared to put our money where our mouth is. Few could question our commitment to ensuring our clients gain access to the latest innovative solutions, having completed over 17,000 hours of research and development over the past few years. It is the equivalent to over £3m in standard consulting fees, made possible by dedicated commitment and personal time investment of our senior management team. The development of 3PPS solutions is just one of several key developments that RGPC have planned. We are currently under NDAs with some of the biggest names in the Financial Services sector, many of whom now understand the huge potential of 3PPS and the consumer focused approach it offers. RGPC clients are a diversified bunch, ranging from ex-Professional Footballers and Managers, through to Actuaries and Executives at some of the largest product providers and Employee Benefit groups in the UK. But, we also cater for the small private investor, dedicating time and resource every year to those who have been unfortunate enough to suffer financial losses through other investment groups that have gone bust in the global financial meltdown. We envisage financial innovation having to move closer to the needs and wants of the consumer, delivering a fairer more transparent deal for savers. Three generations of savers now need solutions that can help potentially replace negative pension growth in real terms over the past decade. Whether in their 30’s, 40’s or 50’s RGPC have a range of innovative solutions that can deliver substantial enhancements to retirement planning for many thousands of individuals. Financial Journalists, Employers or Employee Benefit advisors wanting to understand more about how Private 3

rd Party Pension Sponsorship could dramatically enhance benefits for their readers, staff or corporate clients

can request an introductory guide by calling 0800 567 73 89 quoting 3PPS or email info@rgpconsulting.co.uk