The Gazette 1989

AUGUST 1989

GAZETTE

Why you should join Solicitors Financial and Property Services

addition have to show on letter headings and business forms the companies for which they act as agents. Under the new arrange– ment, Sedgwick Dineen Personal Financial Management is the insurance broker and hence neither solicitors nor S.F.P.S. will have to register under the Act. The advantages of joining S.F.P.S. may be summarised as follows: 1. You will be enabled to provide access to a wide range of financial services for your clients at virtually no additional cost, 2. You will be provided with com– prehensive training in the relevant areas by Sedgwick Dineen Personal Financial Management, 3. You will receive back-up and marketing support - this will consist of a supply of leaflets, the User Manual, a regular news– letter and periodic seminars on particular topics plus compre– hensive technical advice as and when required. 4. A substantial additional source of earnings will be created. For solicitors deciding not to join S.F.P.S. the alternatives open are: 1. To set up their own financial planning service - this requires the investment of substantial capital to provide the necessary expertise in the different areas; 2. To enter into similar arrange– ments with other firms - we believe that in this event it is unlikely that a similar level of marketing and training support would be supplied within the structure of the commission sharing arrangements between Sedgwick Dineen and partici– pants in S.F.P.S.; 3. Not to become involved in the provision of financial services advice - we believe that in this instance a substantial business opportunity is being missed and

The initial response to the launch of the Solicitors Financial and Property Services Company by the Law Society has greatly exceeded all expectations. At the seminars held round the country, more than 600 practitioners were repre– sented. To date membership of S.F.P.S. is approaching 200 firms and new members are joining every day. More than 200 enquiries have been processed by Sedgwick Dineen Personal Financial Manage– ment. The objective of S.F.P.S. is to restore the image.in the public mind that formally used to exist of the solicitor as the first port of calion all financial matters. Over the last 20 to 30 years the position of the solicitor has gradually been eroded through the expansion of activities by accountants, banks, insurance brokers and estate agents among others. There is much talk of the "financial supermarket" or the "one stop shop" and whilst it is by no means certain that this concept will prove popularly acceptable in Ireland, nevertheless there are various institutions in the process of offering their services on this basis. No doubt it will not be long before these institutions are also providing legal services. It is therefore very sensible for solicitors to seek to offer their clients as wide as possible a range of services. S.F.P.S. will assist in this development. Through S.F.P.S. the Law Society has entered into an arrangement By Peter Prost, Managing Director of Sedgwick Dineen, Personal Financial Management

whereby Sedgwick Dineen Per– sonal Financial Management has been appointed to provide financial advice to solicitors and their clients. This advice covers savings, lump sum investment, inheritance tax planning (Section 60)' mortgages, life insurance, pensions and financial planning generally. Sedgwick Dineen is part of Sedgwick Financial Services, an international group of specialists in insurance and personal financial management. In fact, Sedgwick is the largest such group in Europe and among the three largest worldwide. Sedgwick Dineen is totally inde– pendent of all banks, building societies, insurance companies or other financial institutions. As such, it is possible to offer com– pletely independent impartial advice. Our insurance related pro– ducts standard commission terms are paid according to a market agreement drawn up by the Irish Insurance Federation to which all life insurers have adhered. Under the arrangement Sedgwick Dineen are responsible for the advice provided and the individual solicitor who joins S.F.P.S. is regarded as an intermediary for the purpose of the Insurance Act 1989. As many will know, under this Act to transact insurance business - and this definition includes all life assurance, savings or investment through life assurance policies - it is necessary to become registered either as an insurance broker or as an agent. As an insurance broker, individuals will, in practice, have to become members of a recognised body of brokers, effect a solvency bond, maintain separate accounts, subscribe to a code of conduct and possibly arrange professional indemnity insurance for this pur– pose. Agents will have to comply with similar requirements and in

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