Clive Barwell TEP FCSI CFP

Clive Barwell
TEP CFP Chartered FCSI

Accredited Member of the Society of Later Life Advisers

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0800 074 8755

Care Fees Planning – Outsourcing

For professional financial advisers only

Can you deal with care fees enquiries?  If you haven’t passed CF8 – Long Term Care Insurance (or equivalent), you can’t, because you are precluded from offering advice on an Immediate Needs Plan.  Even if you have the requisite qualification, do you undertake sufficient care fees work to be an expert?  If not, you should consider outsourcing to someone who is.


FSA Guidance

In the final guidance issued by the FSA in June 2012 regarding Independent and restricted advice, there was particular reference to long-term care insurance contracts, as follows:

“Long-term care insurance contracts are retail investment products. Advising on long-term care insurance contracts requires a specialist qualification, but not a separate permission. We do not expect a firm that holds itself out as providing independent advice to have an adviser who is qualified to advise on long-term care insurance contracts, because it is a niche market for which we currently require additional qualifications. But, as with pension transfers, all competent retail investment advisers who give independent advice should be able to identify clients for whom a long-term care insurance contract should be considered and be in a position to refer these clients on to someone who can provide advice on these products. Advisers should not recommend a product that is an alternative to a long-term care insurance contract, where a long-term care insurance contract would be suitable, because they have not passed the relevant examination.”


I am an accredited member of the Society of Later Life Advisers (SOLLA) and head of later life advice at the national IFA, Wren Sterling.  Working with another SOLLA accredited Adviser and supported by a number of experienced CF8-qualified advisers throughout the business, I am now in a position to offer a fully comprehensive, fee-based outsourcing service to other financial advisers.

Wren Sterling is highly experienced in outsourcing, having been involved with other advisers for many years in various niche areas of financial planning, so understands implicitly the rules of engagement – the non-compete clause is sacrosanct to us.

Two Choices

In simple terms, there are two choices available when Granny goes into care – invest the available capital and drawdown the shortfall between income and expenditure or buy an Immediate Needs Plan (impaired life annuity) and invest the balance.  Our systems enable a comparison to be drawn-up between these two key options to enable Granny, her family or Attorney to arrive at an informed decision as to which route is most suitable.  The fee for producing this report is time-costed, subject to a minimum of £750, and is non-divisible with the Introducer.

Where the Introducer is an investment adviser, any investment element of the solution will be handed back to the existing adviser for implementation.  If an Immediate Needs Plan is a part of the solution, implementation will depend upon the qualifications held by the existing adviser (and their preference).  An appropriately qualified adviser can submit an application for an Immediate Needs Plan, so that aspect of implementation can also be handed back.  However, we are happy to also undertake implementation, including, of course, the suitability of the advice, and will share our implementation fee – generally 3% of the premium – with the introducer.

As a part of the overall service, I will provide you with any training needed to identify the opportunities and have a preliminary discussion with Granny and/or her representatives.  I will also keep you fully informed and updated with any changes in the requisite rules and regulations.

For a no obligation preliminary chat, or to book an appointment, please contact us.

Accredited SOLLA Advsior