This picture of Bobby Riddaway is I think 20 years old and is from the days when Bobby was an investment consultant. We met at Mallowstreet at a time when many of us were setting out. At the time I knew him as Booby – how wrong I was!
In the early years of the century Robert and Dawid were getting Redington and Mallowstreet going and Bobby and I were given opportunities to meet a generation of consultants, trustees and actuaries we had no idea existed.
I came from an insurance background having sold with profits for nearly two decades, Bobby had become an actuary at Co-op and followed up with Hewitt, Buck and latterly with Capita.
Bobby and my experience of With-Profits is very different and were it not Bobby I would find a discussion on with-profits a little arcane. But it is Bobby and I’m looking forward to his conversation with the enervated audience that still discusses Hymans talk on untapping pensions!
He is someone who brings a common sense to pensions and I’m very proud that we remain friends now he works with HS and has been a great influence at PMI.
Today (Tuesday), Bobby will be at Pension PlayPen , a natural succession from Mallowstreet for someone who like me is keen to get things right. I have no idea what Bobby means by the title but I have the following notes from the blue scouse, which are the kind of questions trustees should be asking pf with-profits when looking after members or indeed private clients
- What is the current asset value?
- What is the current asset allocation?
- What is the benchmark?
- Where are the underlying assets – what fund structures?
- What are the fees?
- Are there any exit fees? MVA’s?
- Is there any notice period?
- GAR’s – Guaranteed Annuity Rates?
Bobby has written this to pass on to you
Trustees and Advisors must ask a lot of questions as part of the process but do they fully understand the answers?…this can generate frustration. Equally Trustees or Advisors who do know “with profits” inside out and can deal with the issues much more efficiently and not see resources, time and fees being “leaked away”.
In Bobby’s experience, as most advisors and trustees grew up with unit linked policies, which really only took off in the mid 90s, they think the information they ask can easily be obtained. Or worse they think they have a right to it.
The problem is unit linked was invented because of those transparency issues with with profits. They have never been solved and there is no reason why they should as with profits smoothing has always been a complicated process. It was one of the three main facets that led to Actuaries in the first place!
Bobby Riddaway is an Actuary and is MD of HS Trustees.
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Bobby – 20 years on
