Angela Faherty asks Graham Fidoe why it is high time long term care is moved to the top of advisers' agendas
Raising the standard of long term care (LTC) financial planning advice is high on Graham Fidoe's to-do list. As chairman of Morton-Wilson independent financial advisers and LTC organisation IFACare, Fidoe is passionate about his subject.
'I wear two hats,' says Fidoe. 'Morton-Wilson specialises in giving advice to a limited number of retired clients and IFACare was formed to help raise standards in the LTC market.' It was his determination to ensure education played a key role in the LTC market that led to IFACare being established in 1995. Concerned with unregulated policies being sold to an elderly client base, Fidoe wrote to some trade newspapers to voice his thoughts.
'I was worried that because it was a new subject there was a risk of mis-selling and therefore there was a need for an organisation to arrange a code of conduct. By voicing my opinion, I found a number of advisers agreed with me, so we formed IFACare,' he says.
The organisation has three main objectives: to lobby for regulation, to provide education and to act as a forum. It has over 250 members and recently held its first conference.
IFACare members are requested to attend an annual workshop in order to retain their membership within the organisation, a fact Fidoe believes is integral to maintaining the level of standards needed in the LTC market.
'The workshops have been designed to help improve our members' continued professional development,' he says. 'We are fortunate to have Tish Hanifan, who is a leading barrister in this field, as our director of training and competence at IFACare, so in workshops she can inform members about current legal issues.'
Workshops also consist of market development updates and members are encouraged to give examples of complex case studies they have come across in order to instigate debate with fellow members.
'The idea is that members can debate with each other about where things might go wrong and learn from one another,' he says.
The prominent role of education in IFACare means it is well poised to handle Financial Services Authority (FSA) regulation when it comes into force in October 2004. Fidoe says the organisation is hoping to work with the FSA to develop standards.
'We hope to have an input in FSA regulation and hope the FSA will work with us in helping to develop best practice for LTC. At IFACare we are differentiating ourselves by committing every member to a code of conduct and a workshop. While some people will criticise that and say we should be doing more, it is a voluntary start and it is helping to raise standards,' he says.
With the foundations of IFACare firmly established, Fidoe says the organisation is set to grow. He admits a membership drive has not been the main priority of the body since it began, but hopes membership will have risen to 350 in two years' time.
'LTC is a potentially huge growth market and more advisers are moving into it and specialising in the retired market. We are in a position now where IFACare has established competency levels, the workshops are in place and we are ready to increase numbers. And as more advisers move into the market, we will expect to see more applications for membership,' he says.
Despite the potential of the market, Fidoe admits there are a number of obstacles to overcome before any significant developments can be made. He says: 'The perception of LTC is not good, but it will change. Nursing homes will become more like hotels and there will be more retirement villages. People will want to go there due to the security they offer, but they have to be more attractive than they are at the moment.'
Raising the profile of LTC insurance is the biggest challenge says Fidoe as it is not something people like to discuss, which is why advisers are ideally placed to help tackle the issue. 'The more advisers there are, the more LTC policies will be sold. The competition is not between ourselves, the competition is ignorance. Ignorance by the Government and ignorance by the general public of what we can do,' he says.
The recent Ombudsman decision to uphold four complaints where local health authorities had misapplied NHS funding rules on LTC has further muddied the waters, says Fidoe. He feels the ruling will lead people into thinking the NHS will foot the bill and believes the Government needs to legislate so a level of clarity can be obtained. 'It is not the Government's business to promote products. I would welcome the Government telling the public that if they have above a certain amount of money, they are essentially on their own and that the Government would not help,' he says.
While the market is in need of some changes, Fidoe believes advisers could do worse than specialise in LTC. He points out that demographics show the generation of baby boomers are moving through to their 70s and 80s, and with people living longer the growth potential is most certainly there.
'There is no need for the market not to increase. I think it will increase and there will be a need for professional holistic advice,' he says. 'If someone develops Alzheimer's it will devastate a family. It will devastate it financially and emotionally and due to this, people need to be pointed in the right direction, so an adviser who specialises in this area will always have a market.'
