Donald Reid

I think the other factor is some firms are achieving organic growth and those who are succeeding are

Those firms, there was a great example that we had when we interviewed a firm and they said, well, when we do an acquisition, then we quite often change the advisors.

We have advisors who want to retire.

They move on and we bring in younger advisors up through our academy.

And they then take on that client relationship.

When that happens and you have a new advisor dealing with a client, that new advisor invariably finds additional assets because they tackle the conversation with the client in a different way.

And they can then identify.

let's say pension assets that the previous advisor wasn't aware of that then creates an opportunity to provide some one-off pension advice they get a fee from that and those assets then come into the remit of the firm and get invested in in the firm's models so there are firms out there that are

doing better than others in terms of organic growth.

And generally, that is where they are changing their advisors and making sure there's a proposition, a distinctiveness to the proposition and benefits from the acquisition strategy that can be conveyed to the clients and prospects, and they win as a result of that.

Put that into practical terms, if you're an investment management-led business and you are required, but you're not actually really performing much by way of financial planning, then you'll be getting fees on the assets that you're providing investment management capability over.

Those fees, let's say it might be

75 basis points.

You're then acquired by a firm that has a large number of financial planners.

What should then happen is that you have targets in terms of how quickly you can introduce those financial planners to the investment management clients.

And if you're

on pension transfers.

And it goes back to my earlier point, if you have the pension transfers coming in, you have one-off fees, you increase your AUM, and you're charging a higher ongoing fee because as a client, you have the benefit of an investment manager and a financial planner, and therefore you'll have the ongoing financial

annual financial planning advice fee that may add another 50 basis points, for example, to that 75 that you're already earning.

Yeah, I agree with all of that.