Standard Life’s Head of Distribution, Jennifer Richards recently met up with IBA’s Chief Executive, Ciaran Phelan

to discuss her new role, the value of independent advice
and Standard Life’s growth plans for Ireland

So Jennifer, how are you finding your new role?

It has undoubtedly been a busy period over the last six months. I’ve headed up Standard Life Investments in Ireland since 2004, but my role was extended last summer to head up the distribution arm of Standard Life. I am now responsible for leading and growing our distribution activities, working primarily with financial advisers, investment consultants and institutional pension fund clients across Ireland. It’s an exciting and demanding role and one I am really enjoying. I’ve over 20 years investment industry experience and have an active interest in the Irish and European pensions industry, having served as a member and chair of the IAPF investment committee from 2003 to 2013.

Tell me more about yourself and how you ended up in Ireland?

I talk a lot about being a proud Welsh lady but I am actually half Irish, my mum is from Dublin. When I graduated from the University of Wales, Aberystwyth, I applied for a job as a trainee actuary in Mercer in Dublin and was delighted to be offered the role. That was in October 1994 and I have lived and worked in Dublin ever since. I started working in the performance measurement team (CPMS) within Mercer which quickly became the first Investment Consultancy team in Ireland. My actuarial career was not particularly long lived but my interest in investments started at that point and while I was in Mercer I completed a Masters in Investment and Treasury from Dublin City University. Before joining Standard Life Investments in 2004, I gained valuable investment and relationship management experience both in Mercer and latterly in AIB Investment Managers.

When I’m not at the office, I’m kept busy in my personal life as a mother to three active boys. Being Welsh I’ve a huge interest in the red rugby shirt, so I was really excited when Standard Life Investments was announced as the principal partner of the British & Irish Lions and the jersey sponsor of the 2017 tour to New Zealand. The Lions brand epitomises the values and ambition of Standard Life as a world class team – a commitment to excellence, a depth of expertise and a talented team. We believe teams that work together, succeed and win together. We know what we need to do and importantly, when.

How has Standard Life experienced such growth in Ireland over the last 10 years?

2006 was a big turning point for the business, the year we demutualised and floated on the London Stock Exchange. Today we’re a global investment company with a very clear focus on being a world class business. In Ireland, the life company has focused on the individual investment market and has become a leader in investment innovation and technical expertise for the financial adviser community. We’ve been first to market in key growth areas of absolute return funds and risk targeted funds with GARS and My Folio – understanding client needs and having matching investment solutions. We’re recognised as leading the market with our technical expertise to advisers.

Superior long term performance has been a key success factor for our business growth, not just in Ireland but globally. 2016 was a difficult year for our short-term investment performance, but this is all part of the investment cycle, and we’re confident that will continue to deliver long term superior returns to customers in the future.

“Customers who have a financial broker have nearly 3 times the savings and investments compared to those who don’t, are more than twice as likely to have a pension and feel more confident about their financial future”

Tell me more about Standard Life’s commitment to the financial adviser market?

Our primary distribution channel is through the adviser market and we rate the importance of independent financial advice for customers highly. This was demonstrated in the ‘Value of Advice’ report we commissioned last year to highlight the real value that Financial Brokers bring to their clients and how they help them look after themselves and their families. At Standard Life we believe peace of mind is the difference between taking and not taking advice and its importance is something that cannot be underestimated. Customers who have a financial broker have nearly 3 times the savings and investments compared to those who don’t, are more than twice as likely to have a pension and feel more confident about their financial future.

I’m a big believer in the importance of self-development and further education. I’m delighted that over the past five years hundreds of financial advisers in Ireland have completed the CFP programme, some up to Masters level. Standard Life has been extremely supportive of this initiative having established the CFP scholarship in 2013.

What are you doing to help advisers face their current challenges?

Supporting our advisers has always been core to Standard Life. We take great pride in our strong in-house investment and technical support and we place a big emphasis on helping advisers to develop their business with our extremely successful Future Ready programme in recent years.

We built on this by creating Adviser Edge, a unique programme of business development support offering everything from investment and technical solutions to business services. Providing a top class experience is a proven way to create client loyalty. Adviser Edge delivers the tools to enable our advisers to do this through our comprehensive suite of seminars, information sessions and our in-house experts. We want to help our advisers create a competitive advantage.

One of our great successes has been in the area of investment innovation bringing new solutions to meet the ever changing needs of customers. We can only deliver on this through the scale of Standard Life Investments with our global presence and 1,700 talented professionals. We have been one of the fastest growing Investment management groups in the world in the past ten years. It’s often said that imitation is the greatest form of flattery and we’ve certainly experienced this in the absolute return fund and risk rated funds space.

What do you see as the biggest opportunities for advisers?

The financial adviser is in the unique position of being the independent trusted adviser in the community. In the complex world of pensions, investment and long term financial planning, face to face advice will always be more valued by clients. This presents a huge opportunity for quality advisers as the prospects for this market are very healthy and the need for independent financial advice for customers has never been greater. In the zero interest rate world that we live in, there is a unique opportunity to educate a new segment of customers who traditionally would have retained all of their non-pension savings on deposit. Standard Life will play a role in supporting advisers to grow this market by demonstrating the importance of taking on some degree of risk for long term savings and investing.

What is the greatest challenge for the pensions’ industry?

Recent statistics from the CSO show that private pension coverage has fallen to its lowest level. This means approximately 1,000,000 people in the work force have no pension outside of the State Pension, and we are all well aware that the State Pension will not be in its current format indefinitely. People need to take more personal responsibility for their long term financial well-being. Together with advisers we need to bring it home to people that once they stop earning they have to rely on their personal retirement provisions to maintain their lifestyle. We also feel passionately about the low numbers of women investing in pensions. We need to make it real for them on what they need to do and how much they need to start contributing.

What’s your view on the changing face of retirement?

We feel very strongly about supporting our advisers on this. We need to engage customers approaching retirement at an earlier point and not just on the financials but very

“One of our great successes has been in the area of investment innovation bringing new solutions to meet the ever changing needs of customers. We can only deliver on this through the scale of Standard Life Investments with our global presence and 1,700 talented professionals”

“Our primary distribution channel is through the adviser market and we rate the importance of independent financial advice for customers highly. This was demonstrated in the ‘Value of Advice’ report we commissioned last year to highlight the real value that Financial Brokers bring to their clients and how they help them look after themselves and their families”

importantly on the emotional side of things. Retiring is a huge transition for each of us and individuals need a plan and time to consider what retirement will look like for them. The financial adviser has an important role to play in both the financial and non-financial aspect, given the unique personal relationship they have with their client base. Our New You initiative can support advisers and clients in this challenging but exciting time.

What do you see as the key trends in financial services?

I believe there are four key trends shaping the market globally.

• Firstly, the democratisation of risk; by that I mean customers having to take on more responsibility and control of their financial future.

• Secondly, we need to focus on rebuilding trust in the financial services world. Trust is earned by meeting clients’ expectations but also how we act as a company. The core of Standard Life is built on world-class people who are proud to work for the company on a professional level but also at a corporate social responsibility level. We’ve donated over €250,000 since 2011, and our staff have volunteered more than 1000 hours of their time. As a leading global investment house, we take our responsibility as an investor seriously. We consider company policies and practices on environmental and social matters as an integral part of the investment process.

• Thirdly, we must embrace technology, not just helping our clients to go online for what they need; (we’re investing heavily in this area particularly for our adviser market in more recent times), but also to help advisers with their conversations with our mutual clients.

• Finally, we must be realistic about this new world of slow growth, low interest rates and compressed returns. We need to continue to develop investment solutions that meet client outcomes and to continue to educate our customers and manage their expectations around single digit returns for the foreseeable future.

What lies ahead for Standard Life in the Irish market?

Believe it or not in 8 years’ time, Standard Life will be two centuries old – there are very few other financial services companies who can talk about caring for people’s finances for 200 years. This fantastic heritage, combined with our investment innovation and forward looking focus brings a unique combination to our customers and advisers. The success of our business is ultimately built around doing the right thing at the right time for customers– this will hold Standard Life in good stead for another two centuries at least!

I’m really looking forward to the challenges and opportunities that lie ahead for 2017. In particular on the sporting front, I’m boldly predicting a Lions victory in New Zealand following on from my Welsh team winning the Grand Slam!

“ I was really excited when Standard Life Investments was announced as the principal partner of the British & Irish Lions and the jersey sponsor of the 2017 tour to New Zealand. The Lions brand epitomises the values and ambition of Standard Life as a world class team – a commitment to excellence, a depth of expertise and a talented team”

Lions Ambassador Keith Wood presents a rugby ball to Jennifer.