How Lighthouse is using technology to get RDR-ready

Nothing however beats learning about how these solutions are used in real life so we have taken a few weeks out to speak to the networks and service providers about the problems they are trying to solve and the best solutions they have found, including their use of technology. This week we spoke to Stephen Gazard, managing director of Lighthouse Advisory Services.

Lighthouse structure

The Lighthouse group has trod a complex development path to reach its position today. Launched back in 2001 and floated on AIM, it has since gone through a series of acquisitions to get to the scale of its organisation today.

Its corporate manoeuvres include a buyout of the Canada Life sales force, and a merger with another AIM-listed firm, Sumus PLC; owners of the network operations Falcon Group and FSAS.

The resultant Lighthouse group has now been consolidated into three divisions:

• An employed specialist division of 43 advisers addressing areas including employee benefits;
• A national IFA containing 230 self-employed advisers;
• A network services division – with 450 self-employed advisers.

The use of technology differs across all three divisions as the level of control Lighthouse can exert varies according to the particular sector. The network members have the lowest propensity to have technology mandated to them.

Gazard explains: “Within our network we have a wide range of member firms, from those with a single adviser to 50-plus adviser businesses. Each firm therefore has differing needs and it is not right for us to mandate their choice of technology, although we have a recommended set of technology and are happy to give guidance in selecting systems and have negotiated discounts for our members.”

Recommended technology

The solutions recommended by Lighthouse include: Intelligent Office (IO) from IntelliFlo, Defaqto Engage, Adviser Assist, Voyant, Paraplanner Online (suitability report generator) and Moneyinfo.

If members choose from the recommended list, there are several advantages beyond the comfort of knowing the group has already researched the systems.

These advantages include favorable commercial terms and closer integration of solutions.

Choosing from the approved solution stack also makes it easier for Lighthouse group to respond to requests and give the highest level of support. The choice of recommended software also allows the member firm to take advantage of group-specific content such as pre-written paragraphs for suitability letters.