The Gazette 1989

GAZETTE

AUGUST 1989

Why you should join

Solicitors Financial and

Property Services

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

Peter Prost, Managing

Director of Sedgwick

Dineen, Personal

Financial Management

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

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

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

The advantages of joining S.F.P.S.

may be summarised as follows:

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:

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

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