In Hong Kong, the regulator banned indemnity commission on ILAS and long-term insurance products. Two guidance notes issued in 2015 and 2016 outlined requirements for product development and marketing, client information standards, pre- and post-sale processes and managing expectations.
“We’ve had to modify our business slightly but there have been no significant changes to our operation,” says Sutton. “With our existing model, we have been really well placed for the changes that have occurred in the past few years.”
In Singapore, the business has been equally well placed. The introduction of a balanced scorecard to ensure companies continue to look after their clients throughout the entire sales process and a 55% cap on first-year commissions have had little or no impact on The Fry Group.
“The balanced scorecard is only relevant if you transact with retail clients, which
we do not do. The 55% commission cap is about regular savings products sold by insurance companies.
“We only really provide clients with advice in terms of term assurance so, again, it doesn’t have any effect on our business,” Pugh says.
Standing apart
At the core of The Fry Group’s philosophy is the concept of TLC – transparency, liquidity and cost. “We make a point of showing our clients that everything we do is transparent,” says Sutton. “Everything we do is liquid and also cost-effective. We stand by that in all of our dealings with clients.”
This commitment to openness has helped The Fry Group stand apart from its competitors. “Given that Singapore is a relatively small place with a small expat community, you build up a reputation – for better or worse – very quickly,” says Pugh.
“When I first joined The Fry Group, there were just four people in the office and we soon got a good reputation for doing things the right way.” The group now has £250m ($310m) in assets under advice in Singapore and $140m in Hong Kong.
The Fry Group’s double success at the IA Best Practice Adviser Awards means the group’s business model, which focuses on driving long-term trusted relationships with clients and putting them first, has been acknowledged, Sutton says.
“We are in an industry renowned for high- commission products and we haven’t taken part in that. When the adviser awards came along we wanted the way we do business to be recognised.”
“We are very proud to have won,” says Pugh, who attributes The Fry Group’s success to an ability to “demonstrate the value they provide to clients”.
“We are always trying to improve the client experience and we are fully committed to providing our clients with brilliant customer service. This is also why we’ve been very successful in growing our business.
“We are going to encourage other parts of the group to submit an application this year.”
Looking ahead, both offices have expansion plans, but this is dependent on attracting the “right sort of adviser”, Sutton says.
“We’ve just recruited a new financial adviser, a new tax adviser and there will be more recruitment later this year,” Pugh says of Singapore.
“We’ve just started a joint venture with an investment company in London, which will drastically improve the way we, in Hong Kong and Singapore, provide investment advice to clients.”
