Video Reply from Evanna for Webinar “How To Build a Franchisee Business with Rockwills”

This is the Video Reply that Evanna Phoon did to address the Questions asked on our Webinar “How To Build a Franchisee Business with Rockwills” on Tuesday, Apr 10, 2012 9:00 PM – 10:00 PM Malaysia Time. The Video Reply is for Brief explanation, please refer to detailed explanation on the text below Video.

http://youtu.be/qlKtF7F3rtA

Question #1: is Rockwills Franchise License Certificate recognised by any association or body ? Insurance is govern by Bank Negara, how about Will Writing & Trust industry ?

Answer #1: Rockwills is operating under Franchise business format regulated by Franchise Act 1999. The services we provide such as Will-writing & Trust is under Rockwills Trustee which is regulated under Trustee Act 1949 & by the authority just like any Bank Trustee. We also comply with Wills Act in Preparing our Wills.

Question #2: for CFP holder, do they still need to sit for Rockwills 3+1 day course ?

Answer #2: Yes, all applicant (even those with legal qualiication) must go through our training & pass the test. It’s very difficult to fail in our exams

Question #3: Is will & trust industry regulated ?

Answers #3: We comply with Wills Act in preparing our Wills, Rockwills Trustee is regulated under Trustee Act 1949.

Questions #4: From Sarah
Thanks for organising the webcast on this. I was just wondering, if there are other similar franchisee business on will & trust. If so, what makes Rockwills stand out from the rest?

Answer #4: Rockwills is the only Company in Malaysia that offer will & trust services using Franchise Business format. Others Companies (Trustee Companies, Law firm other professional firms etc.) may also offer will-writing services as compliment to their own core business. For Rockwills, will & trust services is our core business and we have more than  25 in house full time Legal Advisors to offer continuous training & support to our Professional Estate Planners.

With our own Trust company licensed by the government under the Trust companies act, this makes us a complete estate planning group where we are able to offer good support to help in providing comprehensive Estate Planning solutions. We have even set up an Advisory company to provide Estate Planning advice to High Networth individuals. Beside the large pool of Legal advisors, our management team have a combined experience of over 100 years in financial services. Moreover, we are in the business for the long term and have put in more than RM5 million investment. Our 17 years of operations is proof of our commitment.

Question #5: From Anthony
In the example given of Total Trust Asset of RM10mil, RM52,500 will be charged as trustee fee yearly.
For 27 years, ~ RM1.4mil will be charges as trustee fees – I assume this fees will be deduct from the Trust Asset of RM10mil, leaving the child RM8.6mil. Am I right?

Answer #5: the trustee fee is calculated every month on the balance (including the interest earned) of each month and divided over 12 months to determine the fee for that month. So the trustee fee of rm1.4 is not accurate as very much depends on whether any distributions are made.For example, the first month for rm10mil will be:
First rm1 mil at 0.75% : rm7,500 / 12
Next rm9mil at 0.5% : rm45,000 / 12
Total for the month is rm4,375
If there’s a Uprepare, diamond package bought, then the discount is 20% of RM 4,375 ?

If the next month rm1mil was distributed earlier the fees would be:
First rm1 mil at 0.75% : rm7,500 / 12
Next rm8mil at 0.5% : rm40,000 / 12
Total for the month is rm3,958.33
If there’s a Uprepare, diamond package bought, then the discount is 20% of RM 3,958.33 ?The above would be used to calculate for the succeeding months ahead.In addition, undistributed funds are kept in interest bearing accounts and would in many cases sufficient to pay for the trustee’s fees.

Questions #6: Uprepare Package – Diamond & JadeThis was not explained throughout the presentation, can you clarify ?

Answer #6: UPrepare stands for Estate Administration Services Package. Perpetual fixed estate administration rates & enjoy estate administration discount of 10% to 30% of RWT fees, depending on the types of UPrepare package. the purpose of this package is to allow the testator to hedge against inflation or future increase in fees. In addition, they are entitled to discount and a refund of the fee when our Trustee fees exceed RM6,000

The Complete UPrepare Package can be found if you click the link here
Link to download UPrepare Package for more detail

Question #7: from Daniel
Thanks for your highly recommended and well interpretation of the franchise under rockwill. I have watch replay and I find it quite interesting but the problem is this is more suitable for people that in the insurance business right? I am just curious if you are not a insurance agent, will it be difficult for a person to start up this business? Do we need to maintain certain amount of quota in order to maintain your income. Thanks

Answer #7 : It is not necessary to be Insurance Agent so because the market potential is so huge that our full time PEPs are able to capture more business and do well. In addition, most of the clients would prefer a person who is full time and focus on the business. If a person is serious and commit to the business, there is no worry about quota because it is very low at only 8 cases a year.
In addition, many of our full time PEPs who are not insurance agents are doing well with the proper guidance, support and commitment. Many also qualify for our annual incentive trips overseas.

In my group, I have very well establish Company Secretary Firms, Audit Firms, Property Agents, Housewifes, Entrepreneurs, Employee that take up this Franchise License. But I’ll always asked them about their purpose of taking up this license, is it due to value adding their clients ? for income increase ? for helping their friends and relatives ?

After knowing their purpose, I’ll try to assist them to achieve their goal. I will never force my franchisee to do sales … only when they are ready and clients are ready. Surprisingly, those who do well in my group are those who treat Rockwills Service as a good sharing of knowledge to share with their friends.Question #8: from Chu Yaw 
I have some questions after watching the webinar replay:
What’s the typical length of sales cycle between a middle income networth and a high networth client?

Answer #8 : There is no fixed sales cycle for estate planning services. The duration of closing is not based on net-worth but depend on the client’s wishes & instruction, data collection & full documentation etc. this is also dependent on our PEP’s knowledge and skills in handling the clients. Once the PEP is well versed with our services, then they can close the case faster. This is where Rockwills is well known for providing a lot of training and workshops to build our PEPs. However, from my experience, high net-worth clients require patience and some of instances, I’ll need to deal with their advisor, company secretaries, tax and audit. So, it’ll take some more time ( a few months) but it’s worth it because through interacting with their advisor, I indirectly get a lot of referrals from them at this moment. You reap what you sow … If you put your heart to service your clients, you’ll get the rewards. In short, for middle income, it might take 2 weeks to close the deal, for high net worth, it’ll take 2 weeks to a few months. However, we pay commission progressively base on stages, not only when client finalize their estate plans a few months later.