September 2005 Newsletter
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10 Years on…
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In 1995 Argyll moved its fledgling operation from Berkshire and the City of London to Sussex following the acquisition of long established Bainton Smith in Worthing. Ten years on and Argyll has grown from a staff of twenty five to over sixty five. It services clients throughout the country from its branches in Herne Bay and Gillingham in Kent and Worthing in Sussex. With a keen focus upon independent Insurance Broking and Financial Management advice Argyll has increased in turnover by nearly 1000% in the ten years and over 250% in just the last five. It has recently become a top 65 UK Insurance Broker and the largest independent Financial Services and General Insurance Broking business in the Kent / Sussex region. In the first of a series of interviews, Argyll Group Chairman Kevin Young answers questions about Argyll’s success and about future plans:
What made you name a business which was founded in the City of London, Argyll?
As a start up, we like many other businesses wanting to appeal to the corporate market, needed a strong identity. We could have named the business after the founders as many Brokers historically did. However we wanted to stand out from the crowd and give the impression of being a substantial business. We moved offices to a building called Argyll House and the rest is history. It is satisfying that we are now in another Argyll House in Worthing but this time because we gave it the name.
How has Argyll achieved such significant growth since those early days?
There have been many, many factors such as consolidation of the Broker market spurred on more recently by FSA regulation, our focus upon niche markets and our development of strong relationships with the insurance markets. However, if I had to select one single factor, it would have to be the development of a strong management team which meant that unlike the traditional Broker, our staff were not expected to multi-task. We do not have Directors who serve as Client Account Managers as well as running other disciplines such as Human Resources, Marketing, and Finance. We have dedicated personnel in each area. This has meant that the business could be developed by an experienced and qualified Management Team whilst clients are served by professionals dedicated solely to their Insurance, Financial Services and Risk Management needs.
What Plans has Argyll for future growth?
We do not want to stand still, of that you can be assured. We have consolidated our operation in Kent in the last couple of years and now this part of our business is as significant to the Group as our Sussex operation. It also means that we have more than retained the necessary critical mass to be able to truly offer our clients an alternative to national competitors who cannot, by their nature, deliver such an in depth, service driven understanding of their business needs. Kevin Young will answer further questions when this interview is continued in the next edition of Argyll News.
Celebrating Awards recognition
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A rgyll is delighted to announce that it has been recognised as one of the top three Commercial Lines Brokers in the country, at the prestigious British Insurance Awards. As the awards entered their second decade as the unrivalled badge of excellence for the Insurance market, they continued to showcase top class performance and innovation. The judging panel consisted of 28 eminent experts such as Lord Davies of Coity CBE – All Party Parliamentary Group on Insurance and Financial Services, Prof David Bland OBE PhD FCII, Keith Sankey - Financial Services Marketing and Product Development Consultant and Paul Howard - Past-chairman, Association of Insurance and Risk Managers.
Hosted at the Royal Albert Hall on the 6th July this category was open to all insurance brokers and independent intermediaries. The award focused upon product and service innovation and on all round service to clients, including the development of long term relationships with clients, niche markets and insurers, identifying and effectively addressing special needs in the market and extending the range of added-value support services offered to clients. The judges expected to see evidence of clear, targeted planning and effective measurement of success. Kevin Young, Chairman of Argyll Insurance Group who was presented with the Certificate, commented “There is no greater accolade in our industry, than to be compared with our peers and to be independently judged the pick of the crop. It is testament to our dedication to a culture of customer service and continuous improvement. Every single member of staff, whether they support customers from our Gillingham, Herne Bay or Worthing branches, should consider this a personal achievement”.
This award follows Argyll’s previous success in 2001 when they received the British Insurance Award for Broking Initiative of the Year and were then highly commended in the Commercial Lines Broker of the Year category.
Pensions…coming out from the cold?
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The changes to pension rules effective from 6th April 2006 (known as ‘A Day’) will have a deep and lasting impact on the flexibility and potential of both company and personal pension arrangements.
Members of company schemes are likely to be interested in their scheme being changed so that they can have access to their tax free cash in their fifties, while still remaining pension scheme members accruing further benefits.
Many of the new flexibilities will be of particular interest to people who already own substantial pension assets. After ‘A Day’ and with the help of a financial adviser, they will be able to take advantage of new relaxations in the current’ straightjacket like' pension laws and take more control over their own affairs.
Self Invested Personal Pensions (SIPPs) look set to be the talk of money pages in the popular press once the penny finally drops next year. The removal of age related limits on contributions and the ability to invest in residential property opens the door to what could be a great hands-on investment.
Higher rate tax payers can obtain 40% tax relief on pension contributions and when combined with existing pension assets, substantial funds could be available for the purchase of a buy-to-let holiday home, student let or even a “jet-to-let” foreign property (if difficulties over the recognition of UK trusts abroad can be overcome).
With the removal of the requirement to buy an annuity to provide benefits from a pension fund and the possibility on death of passing pension assets down the generations, pensions are set to become a much more flexible financial management tool. Their scope is likely to reach far beyond the traditional investment for the support of individuals in their retirement.
Argyll’s Paul Shoard comments “This article serves to highlight the very tip of the iceberg regarding the impending impact of the new pensions rules. Such is the scale and scope of the changes that it would be impossible, without consultation, to provide an exhaustive picture for every set of circumstances. For companies, trustees and those in schemes saving for their retirement it is essential that professional financial advice is sought and skilled individual guidance given”
Argyll can conduct an initial review of the impact of ‘A Day’ upon your retirement planning, your company scheme or your position as a trustee and we can provide tailored advice, relevant to the individual situation and requirements. Argyll Financial Services can be contacted in Kent on 01634 360000 or in Sussex on 01903 205753.
Is the game up?
Regular readers will have seen our previous articles about Inheritance Tax planning. We make no apologies for returning to this topic again, as it remains an area of constant change and where significant tax savings can be achieved, with professional advice.
For many years those seeking to maximise the tax free assets that they can bequeath to their nearest and dearest have been able to identify loopholes in taxation legislation to achieve their goals. These Inheritance Tax (IHT) avoidance schemes were however the subject of a major government crackdown implemented on April 6th 2005.
Often these schemes involved transferring the house to family members and careful planning had allowed people to escape the ‘reservation of benefits’ rules. This resulted in a ‘game’ of Tax ‘ping pong’. Each time the Inland Revenue served a new measure to close down a loophole, the schemes countered this, growing ever more sophisticated.
Now, the Inland Revenue has introduced pre-owned assets legislation which means anyone who benefits from free or low-cost enjoyment of assets they formerly owned (or provided the funds to purchase), and which fall outside their IHT estate, will suffer an income tax charge on the difference between what they pay to use the assets and the full market rate. The rules apply not just to real estate, but also to any settled property and chattels.
There are exemptions - for example, any property that ceased to be owned before 18 March 1986 or is now owned by a spouse will not be affected, but many arguably deserving cases will still be caught. These could include cash gifts from parents to children. It seems that if you sell your house, gift cash to your children and subsequently occupy their home with them (which they purchased with the cash gifted), you could potentially fall foul of the new regime.
This is an increasingly complex area as a result of this new legislation and each individual affected is likely to have unique circumstances. It is therefore important that professional advice is sought. There may be a number of options available to you to significantly reduce your tax liability. In order to explore these please contact Argyll Financial Services.
New President
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Account Executive Jane Lawrence has been appointed President of the Chartered Insurance Institute of Folkestone, Canterbury and East Kent. Based at Argyll’s Herne Bay branch, Jane has worked in the Insurance Industry for the last 18 years. She started her career at The Royal Insurance in Canterbury following successfully completing a BTEC National Diploma in Business Studies. Jane comments “The Chartered Insurance Institute is committed to improving professional knowledge and career development within the Insurance Industry. This need is greater than ever due to the new regulation requirements of the Financial Services Authority”.
Insurers – In no doubt
Insurance to take part in 2012 |
Insurers are not expected to shy away from covering the 2012 Olympics in London, despite the recent terrorist attacks. Argyll Director, Chris Gibson said that ‘premiums for terrorist threats against the games are unlikely to dramatically rise, which may have otherwise put the participation of some insurers in doubt”. Other industry experts have claimed that London, which was confirmed as host city in 2012 less than 24 hours before it came under attack, still has a relatively low risk of disturbance. ‘Providing proper security is in place, the risk is not increased’ added Argyll Account Director, Stephen Sharpe.
The market is confident that underwriters will be astute when determining rates. A London Market expert expected that tendering for the insurances for the 2012 Olympics will begin in ‘the next few months’. He added ‘There are no natural catastrophe threats in London, and it is politically stable’.
Chris Gibson added “Whilst these comments are being made in relation to an event some seven years away, there is still the absolute need for businesses to take the threat of terrorism seriously. As there is currently a ‘soft’ insurance market, with a general stabilisation in premiums and plenty of capacity, businesses should consider a review of their terrorism cover”. If you wish to audit your terrorism covers, please contact your Argyll Account Manager.
Sound effects…require sound solutions
Are you prepared for the new noise control legislation? |
In recent years, health and safety issues such as manual handling, hazardous substances and the use of display screen equipment have been much publicised. There is now a new area of focus for the Health & Safety Executive - Noise.
The numbers of employees exposed to hazardous levels of noise at work has increased substantially over the past 50 years. Noise levels are measured in Decibels named after Alexander Graham Bell and currently legislation uses the ‘A’ weighting scale to calculate noise measurement. This takes into consideration the human ear's sensitivity to certain frequencies. Current World Health Organisation figures suggest that about 1.3 million workers in the UK are exposed to noise levels over 90 dB(A). Additionally 170,000 people suffer deafness, tinnitus or other ear conditions as a result of exposure to excessive noise at work.
The problem occurs in many workplaces, but particularly in the manufacturing and construction industries, as well as farms, transport operations, mines and quarries. European Directive 2003/10/EC on the minimum health and safety requirements regarding exposure of workers to the risks arising from physical agents (noise), which will repeal Directive 86/188/EEC, was adopted on 9 December 2002 and came into force on 15 February 2003. In the UK we now have until 15 February 2006 to transpose the Directive into UK Regulations. From 24th – 28 th October the HSE will be using the European Week of Safety and Health at Work to raise awareness of this new legislation.
In practice, changes to the Noise at Work regulations will include: -
- Reduction in the first and second action levels by 5dB(A), to 80dB(A) and 85dB(A) respectively.
- A new exposure limit value of 87dB(A) at the ear - the maximum level of noise to which any worker may be exposed.
- Noise exposure risk should be eliminated at source, or reduced to a minimum.
- The right of workers to hearing checks when a risk assessment indicates that their hearing may be at risk due to work-place noise levels
“What this directive does”, comments Argyll’s Health and Safety expert Stuart Rodway “is strengthen the requirements to take remedial action to lower noise levels and put plans in place to show the action taken. Noise levels in the workplace are something that we can help our clients look at, and something that every employer must take seriously.”
If you would like to get a head start on solving noise problems in your workplace before the regulations come into force from February 2006, there are a number of simple strategies which Argyll can advise you upon such as:
- Look at your current processes and try to reduce or eliminate noisy actions such as cleaning with compressed air.
- Specify quieter equipment as part of your purchasing policy
- Change people’s work patterns so that they swap between quiet and noisy jobs In order to ensure that you are fully prepared for the new regulations and that you minimize the risk of damage to the hearing of employees, please contact Stuart Rodway on 01903 205753 or speak to your Argyll Account Manager.
Community Commitment
Left to right - Argyll’s Rob Green, John Cox, Gareth Roberts and Councillor Ruby from the Walking Bus Project |
In the last few years, Argyll Insurance Group has established a culture of providing support to the local community. This year Argyll has renewed its funding of the specialist Insurance covers required by the Walking Bus Project.This will enable it to continue its worthwhile work providing a safe and healthy way for children to walk to school in Kent. Additionally, Argyll will continue to be a major contributor to the Kent TryAngle, Child achievement awards.
In Sussex, Argyll has increased its sponsorship for Worthing Rugby Club’s first team. Club Secretary, Mike Perring commented “Argyll’s commitment to the Club has meant that we can compete at a higher level. We narrowly missed out on promotion last season and Argyll’s increased support for the first team this year means that we can again, mount a serious challenge for a position in the National League”. In 2001 Argyll also founded its own charity, the Argyll Children’s Fund, which provides a focus for staff fundraising to assist the health and welfare of children throughout the south-east of England. Many thousands of pounds have been raised and donated to worthy causes. Argyll recently hosted its 5th annual Charity Golf Day at Gatton Manor Golf and Country Club. The Fund benefited to the tune of over £660. Kevin Young commented “Once again we were blessed with good weather and some magnificent golf. Since we hosted the inaugural Golf Day in 2001 we have raised in excess of £6000. These funds have benefited such worthy causes as the Chestnut Tree House Children’s Hospice, the Royal Alexandra Hospital for Sick Children in Sussex and the Demelza House Children’s Hospice in Sittingbourne, Kent. I can only thank the generosity of those who attended this year”.
