Nucleus FinancialPlatform Development Group

Quarterly meeting

February 2011

Agenda

• 2011 roadmap• Specific enhancements:

– New business– Illustrations– Model Portfolio Self-service– Pension changes– Later releases (valuations/trading)

• Gap analysis• Regulatory changes / TCF issues• LinkedIn• Review 2011 roadmap

Q1/Q2 2011

• Hardware resilience / performance• Self-service model portfolios• Platform security• API (internal) for New Business process

Additional Q1 changes

• Withdrawal maintenance• Exclude cash from rebalance• Aggregation / disaggregation• Trading enhancements• Reserved cash• USP information• Gross general account• Segment assignment• Distribution enhancements• Bulk reports• Reports• Transaction history

Q2/3 2011

• Revised New Business • Sub-accounts• Revised Valuations pages (front end)• External web services (API) for 3rd parties• Bulk switch / partial switch enhancements• Multiple Isa accounts

Q3/4 2011

• Trading enhancements (front end)• Performance analysis / client reporting• IFA self-service• Pension calculators / drawdown tools

Sprint schedule

Sprint # Ready for testing

Release date (tbc)

Strategy meeting

1 18th February 9th February

2 18th February 18th March

3 (4 weeks) 18th March 15th April

4 (4 weeks) 15th April 20th May

5 20th May 1st July 16th June

6 1st July 12th August

7 12th August 23rd September

8 23rd September 4th November

9 4th November 16th December 17th November

• Releases every 4-6 weeks

Sprints – Main Features• Sprint 1

– Bulk wrap & account summary• Sprint 2

– New business (add/edit client), Model portfolio self-service, Reports

• Sprint 3– New Business & Illustrations– Wrap & Account summaries

• Sprint 4– Bulk re-balance & bulk switch– Trading

• Sprint 5– Performance analysis & client reporting– Inter-account transfers– Sub accounts

• Sprint 6– Self-service

Sprint 1 (Release 18th February)

• Purpose– Migration of platform into new framework to

enable Agile development.

• Additional features– Bulk wrap and account summary generation– Exclude cash from re-balance– Withdrawal maintenance (tbc)– Changes to reserved cash calculation– What if I re-balance now report?

Sprint 2 (Release 18th March tbc)

• Main features– Model portfolio self-service– New Business (add a client – released later)– Reports changes (including report for firms)

• Additional features– CGT calculator improvements (exclude in-

specie transfers)– Natural income display on transaction history

Model portfolio self-service

• Features– Create a new model portfolio– Edit – Copy– Set and change status and permissions– Find a model portfolio containing assets– Client search– Reports

Linkedin discussion points

• Easy way to start a new bulk switch or rebalance

• Rebalance today on outstanding trades report

• Model portfolios with closed funds

Next phase (for Sprint 3 &4)

• Audit– Records changes to the model portfolio– E.g

• Fund X removed. Fund Z Added on 9th February by L Campbell

• Fund Y % split changed from 10% to 15% on 9th February L Campbell

• Bulk change– Bulk change an asset across multiple model

portfolios.

New Business – progress update

• Split into 3 Sprints– Sprint 2 – Add and edit client – Sprint 3 – New business and top up for single

client - multi account (including joint accounts), new illustrations engine

– Sprint 4 – Multi-client, multi-account application submission

Sprint #

Ready for testing Release date

2 18th February 18th March

3 (4 weeks)

18th March 15th April

4 (4 weeks)

15th April 20th May

Add a client

New client confirmation

Sprint 3

Illustrations

• Functionality– Drawdown illustrations– Quick quotes and full illustrations– Lump sum & regular payments– Save, copy and edit illustrations– Full asset or model selection– Link from illustrations to new business

• Calculations– Growth rates based on IMA sector

Sprint 3

• Valuations– Transaction history– Pending transactions– Running cash balance/running cash balance

report– New permissions e.g. ‘can key ‘can key +

place’– Improvements to bulk switching and re-

balancing

Pensions changes - regulatory

• Following changes need to be made to the Pension (USP / Benefits and Income) account:– a reduction in the  maximum drawdown limit to 100%

GAD (from 120% for USP) for next period– a reduction in the periodic review requirement from 5

years to 3– an increase in the tax charge on death lump sums to

55%– removal of the age 75 limit– >75, any uncrystallised assets have a tax charge

Pensions changes – product enhancements• Flexible drawdown

– Unlimited GAD drawdown where meet Minimum Income Requirement (£20K)

– No reviews– Questions on how to determine whether client meets

MIR• Phased drawdown

– Update phased drawdown product assuming sufficient IFA demand

– Potential to create drawdown using 2 linked accounts: one for holding investments, and one for crystallised assets

Sprint 4

• Multi-client, multi-account new business submission

• Bulk switch & Bulk rebalance improvements

• Trading enhancements

Sprints 5 & 6

• Performance analysis• Self-service

– Add a new user or new office – Change the permissions (e.g. can trade, can

submit new business)– New paraplanner role– Configure correspondence

Closing the Transact gap

• Key features to meet (priority order):– Single nominee structure– Payments / withdrawals from client accounts– Natural income sweep– General to ISA switches– Buy by units– Death processing– Multi-currency assets– MIPs– Cash flow analysis– Equity trading– Single withdrawal payment across tax wrappers

Other regulatory changes

• RDR– Corporate actions– Unit based rebates– Automated re-registration

• Tax wrapper changes– Pensions drawdown– ISA contributions

Automated re-registrations

• Nucleus chaired TISA workstream has produced SLA for re-registrations:• Standard turnaround

for transfers• Across all nominees

• Next step is trial with industry participants (IFDS, FNZ)

New Products

• MIPS– More relevant due to pensions contribution

restrictions?– qualifying regular premium endowment policy– Would run in transparent manner, and be similar

to onshore bond in some ways

• Protection– Create links to protection providers from platform – Would pre-populate forms / underwriting engines– Additional

• Annuities– Run third-party annuities on Nucleus platform

LinkedIn

Platform Development Meeting in June

• Where will we be?– New business live– Model portfolio, bulk switch and bulk re-

balance fully integrated and improved– Wrap and account summary

• What’s next?– Automated re-registration– Pension calculators