Green Financial Advice

Green Financial have been offered shares in a piece of software we use as a wealth platform and back office for clients. The shares were offered in return for placing business on the platform. We have rejected the offer and elected not to participate in order to avoid any suggestion of conflict of interest. Green Financial place independence and doing the best possible job for our clients at the heart of everything we do. As you can read below, technically it appears there would be no legal conflict of interest. Green Financial recognise that TP is a great piece of software as a back office and client site system and the wealth platform element has much to recommend it to many clients. But not all clients. We will continue to only recommend TP as a wealth platform if we believe that is the best solution for a client and we will NOT receive any shares or inducement for placing business on it. We asked the company if this represented a conflict of interest. Their response included: "…whether a conflict actually exists when the units being offered represent no current or real value and are issued within a trust of a non-authorised entity, True Potential LLP, which is a completely separate legal entity and has no bearing or influence over the regulated Platform nor over the advisers giving advice to their clients. The actual rules state that for the purposes of identifying the types of conflict of interest that arise, or may arise, in the course of providing a service and whose existence may entail a material risk of damage to the interests of a client a firm must take into account, as a minimum, whether the firm or relevant person directly or indirectly linked by control to the firm: Is likely to make a financial gain, or avoid a financial loss, at the expense of the client Receives or will receive from a person other than the client an inducement in relation to a service provided to the client, in the form of monies, goods or services, other than the standard commission or fee for that service What is important here is identifying the risk, loss or damage to your client - if the platform is suitable for your client then there is no loss or disadvantage and in turn no conflict. Furthermore the FSA guidance states that the circumstances which should be treated as giving rise to a conflict of interest covers cases where there is a conflict between the interests of the firm and the duty the firm owes to a client or between the differing interests of two or more clients to whom the firm owes in each case a duty. It is not enough that a firm may gain a benefit if there is not also a possible disadvantage to a client or that one client to whom the firm owes a duty may gain or avoid a loss without there being an associated possible loss to another such client - this guidance means that if there is no loss to a client or no client loses out as a result of another client being placed on the platform then there is no conflict. It is worth noting another wrap platform we used recognised our excellent quality and volume of business by offering a 0.05% benefit. Rather than take this money we passed it on to all client accounts as a discount and it is disclosed on literature if it benefits a client. Green Financial continue to believe that our remuneration should be based on the agreements between you the client and us for the work that we do for you. We will remain independent and will not accept money or shares for placing volumes of client business with a provider.