I N T R O D U C T I O NCharles Stanley & Co. Limited is one of the oldest firms on the London Stock Exchange. Originally formed as a banking partnership in Sheffield in 1792, the firm moved to London in the 1830’s. In 1852, the name Charles Stanley first appeared as an independent member of the London Stock Exchange.

Today, Charles Stanley & Co. Limited is one of the leading investment management companies in the UK, dedicated to serving the private investor. The firm also acts for many national charities, trusts, professional institutes and major financial institutions, but the principle focus, as it has been for more than a century, is the provision of a traditional high-quality service to the discerning private investor. Charles Stanley prides itself on offering a ‘Personal Investment Service’ and strives to deliver the very best levels of service for all clients from Discretionary, Advisory and Execution-Only Private clients through to Corporate clients, Charities and Trusts.

The firm is committed to continual investment in its administration functions and IT systems and the company’s ‘back-office’ consistently wins praise from clients for its attention to detail and swift handling of client queries.

Discretionary and Advisory Managed clients have an Investment Manager who creates a specific investment strategy tailored for them. Every client’s portfolio is regularly reviewed and the firm is proactive in managing clients investments, based on its own views and those of its large and well respected research department.

Charles Stanley Case Study

www.jhc.co.uk www.charles-stanley.co.uk

B U I L D I N G L O N G T E R M S T R A T E G I C R E L A T I O N S H I P S

S T P

For wealth managers, establishing themselves as a ‘trusted advisor’ to their clients is key to developing a long term relationship. JHC has the same objective when engaging with its clients – to build trust in our systems and our staff, and the knowledge and experience they offer. For both organisations, it can take years to build that trust, and a moment to destroy it, so it is important to be listening to the client at all times, while keeping an eye on market trends and being proactive in leveraging new ideas and technologies.

Mac Anderson, Charles Stanley’s Head of Operations has commented on significant improvements in JHC’s approach over the years:

“Twelve years ago, their direction was driven entirely by client demand. The company has evolved, it is more proactive, and there is a lot of investment from within especially in enhancing the Wealth Management functionality.”

Straight Through Processing (STP) is the IT holy grail for wealth managers and FIGARO delivers automated trading and settlement across a broad range of different financial instruments and markets. JHC has introduced workflow and automation to increase efficiency and reduce cost and risk, so that Wealth Managers can focus on developing the all-important relationship with their clients, without being hamstrung by systems and processing issues.

One of the most important features of the FIGARO system is its single database. Clients accessing the system on iPhones and tablets, or via the firm’s website, will see exactly the same data as the front and back office staff. No time lags, no complicated reconciliation issues, everyone sees the same positions whenever they look at the system, wherever they are in the world.

In another recent FIGARO innovation, execution-only clients can use online facilities to open an account, complete AML and credit checking online, deposit funds into an account using a debit card, and start investing, all with no human intervention from the firm. Clients have the freedom to manage their own investments online. T he market-leading, award-winning and commercially-acclaimed Charles Stanley Direct website is underpinned by the FIGARO system.

F O C U S O N T E C H N O L O G YBack in 1988, Charles Stanley was the first of the large private client firms to select JHC’s FIGARO system as the IT platform for its investment management business. How the world in general, and the financial services landscape in particular, has changed since then, and Charles Stanley’s business has grown and diversified. With over 1,000 staff working in 32 offices, managing some £20.5bn in assets on behalf of its clients (as at 31 August 2014), Charles Stanley is now one of the largest investment managers in the UK. And FIGARO is still at the very heart of Charles Stanley’s IT infrastructure. What is the key to FIGARO’s longevity and success?

B R E A D T H O F F U N C T I O N A L I T YDeveloped over twenty-five years, FIGARO handles a wide range of financial instruments, in a multi-currency, multi-business unit environment. JHC can provide a total wealth management solution, including;• a branded internet platform;• CRM and portfolio management facilities, including modelling, re-balancing, switching, CGT and

performance measurement;• full compliance monitoring and reporting;• corporate actions, nominee processing, the most functionally rich CREST interface in the market today;• links to more than 100 third party systems, including Calastone, Cofunds, EMX, Proquote, Fidessa, BBH,

BoNY and other custodians, document management, IFA systems and many others;• automated payments processing and fees calculation and billing;• all fully integrated, all accessing a single database.

Working closely with long term strategic customers like Charles Stanley, JHC has developed market leading client-facing functionality, including a modern user configurable client inception module. Configurable Client Maintenance (CCM) enables firms to tailor their inception forms and streamline the client registration process, making it quick and easy to record all of the key information they need to bring new clients on board.

Mac Anderson comments: “FIGARO provides a very professional service, delivering what it promises.”

C O N T I N U I T YThe founders of JHC who were involved in FIGARO back in 1988 are still actively involved in the company today. Many staff have completed more than ten years’ service with JHC. This brings the benefit of continuity – a large and growing community of people who understand the stockbroking and wealth management industry and the FIGARO system. A widening circle of committed people who know why and how the system operates as it does, giving JHC unparalleled continuity.

F U T U R E V I S I O N

C O N T I N U O U S I N V E S T M E N T

It is the senior executive team’s vision and continued commitment to delivering a modern, high quality solution which drives the company forward. While its competitors rest on their laurels, JHC pushes ahead with FIGARO, constantly searching for greater efficiency, for better, faster, safer and more reliable and robust ways of managing wealth. The FIGARO roadmap contains many exciting new initiatives, including proactive portfolio suitability monitoring, a new back office user experience and more workflow functionality in addition to keeping pace with the ever changing regulatory agenda.

JHC is justly proud of its long term commitment to the wealth management marketplace. Its continued programme of investment in FIGARO saw £3m, the equivalent of 30 man years R&D invested in FIGARO in 2013. To maintain its market-leading position, the company will match that investment in 2014. There are no additional charges for developing UK and Irish regulatory changes – the cost of all changes is covered by the annual Support and Maintenance payment.

1997 - LSE’s SETS system introduced. - Gordon Brown becomes Chancellor of the Exchequer.

2000 - Charles Stanley Group holds 100th Annual General Meeting.

- Charles Stanley voted “Best Dealing-only Stockbroker” 2000 by Investors Chronicle.

1999 - Charles Stanley voted “Best Medium Stockbroker” 1999 by Investors Chronicle readers.

- Individual Savings Accounts (ISAs) introduced.

2001 - Financial Services Authority (FSA) replaces the SFA.

2004 - Charles Stanley wins Shares magazine “Best Discretionary Broker 2004” and “Best Dealing-only Stockbroker 2004” at Investors Chronicle Investment Awards 2004.

2005 - Child Trust Funds (CTFs) introduced.

2007 - Introduction of MiFID. Alistair Darling becomes Chancellor of the Exchequer.

- Charles Stanley wins Shares Magazine Award for Best Discretionary Broker and Investors Chronicle Award for Best Execution Stockbroker for Financial Security.

2002 - CREST acquired by Euroclear.- Introduction of European Monetary Union.

- Charles Stanley acquires Torrie & Co. and Robson Cotterell.

- Charles Stanley wins Shares Magazine UK Equity Awards 2002 “Best Stockbroker’s Research / Information Service”

2000

1996 - CREST goes live; CRESTCo. formed.1993 - Taurus, the LSE’s Talisman

replacement project, fails. - Norman Lamont becomes Chancellor of the Exchequer

T I M E L I N E

1988 - Two years after “big bang” UK markets deregulation, stockbrokers were still settling trade through the LSE’s Talisman system on a fortnightly “account” cycle.

1989 - John Major succeeds Nigel Lawson as Chancellor of the Exchequer.

1992 - Personal Equity Plans (PEPs) introduced.

1990 - Norman Lamont becomes Chancellor of the Exchequer.

- Tax Exempt Special Savings Accounts (TESSAs) introduced.

Some key events in the wealth management industry over the last 25 years

1988

2010 - George Osborne becomes Chancellor of the Exchequer.

2013 - FSA replaced by the Financial Conduct Authority and Prudential Regulation Authority.

2012 - Retail Distribution Review proposals implemented.

2014 - FATCA and T+2 settlement live.

2010

2014

2006 - Retail Distribution Review launched by FSA.- Charles Stanley wins “AIM Broker of the Year” at Growth Company Investor awards, “Best Execution Only Broker: Financial Security and Admin” at Investors Chronicle Investment Awards.