An Equity & General adviser with a client

What the accountant does and what the financial planner does

An accountancy firm can raise financial planning with a client without giving regulated advice. The line sits between describing what is in the accounts and recommending what the client should do about it. In the Altro partnership the accountant does the first and the Equity & General financial planner does the second.

4 min read · Altro Partners, by Equity & General

What the accountant does

  • Sees the situation in the file. Cash above what the business needs, no pension contributions, a personal guarantee with no cover behind it, an owner past 55 with no plan for stepping back. These are facts in the accounts, and the accountant sees them first.
  • Asks the client one question. "Has anyone looked at what that money is for, for you personally?" is a question about the client's affairs. The question does not recommend any product or action.
  • Makes the introduction through the portal. With the client's agreement, the accountant records the introduction in the firm's own portal, in the firm's name. The firm follows it there from the first call to the advice being put in place.
  • Does the accounts and tax throughout. The accounts, the tax, the company structure and the relationship stay with the firm throughout.

What the financial planner does

  • The recommendation. The choice of pension, amount, fund, cover and provider. These choices are regulated advice and sit with the Equity & General financial planner.
  • Suitability and the paperwork. The fact-find, the risk assessment, the suitability report and the FCA obligations that go with them. Equity & General is authorised and regulated by the Financial Conduct Authority (FCA No. 474163).
  • Putting it in place, and reviews. Setting the plan up, keeping it on track and reviewing it with the client.

The test

If you are describing a problem you can see in the accounts, you are doing your job as an accountant. If you are telling the client which product to buy, how much to contribute or whether to transfer, you are giving regulated advice without the permission to do so.

When a client asks "so what should I do?", the answer is that this is a question for the financial planner, and that you can introduce them. The introduction is recorded in the portal and the firm sees each stage: introduced, meeting booked, advice in progress, in place.

Accountants at work in a practice

Financial planning for your clients, alongside the accounts and tax work

Equity & General holds the FCA authorisation. There is no charge to your firm, and a named partnership director works with you from the first introduction.

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