1. RGP Consulting (UK) Limited
South East Regional Office: Phoenix House, Hastingwood Road, Hastingwood, Essex CM17 9JT
Office: +44 (0)1279 899 002 Fax: +44 (0)844 567 7389
Registered at Trinity House, Sewardstone Road, Waltham Abbey, Essex EN9 1PH Registered in England No. 6529747.
RGP Consulting (UK) Ltd is an Appointed Representative of Eden Associates, which is authorised and regulated by the Financial Services Authority
Private 3rd
Party Pension Sponsorship (3PPS) unveiled by
pension & investment strategist firm
17,000 Research & Development hours concludes at RGP Consulting (UK) Ltd/Wealth Connection
On the 4
th
October 2010, the BBC’s Panorama programme delivered a damning verdict on the pensions
industry. However, it surprisingly stopped short of tackling two of the biggest problems:-
 the cost of delay, and
 the impact of insufficient funding
For most Pension specialists the main issues are not really about which pension provider you choose, the AMC
or even the investment style. Whilst charges and investment returns do clearly influence the outcome of any
investment, they will always remain just a sideshow to the real influencers in any long-term savings strategy;
how much is actually paid in and how long it remains invested for.
At RGP Consulting (UK) Ltd (RGPC), we have sought to focus on ways to deal with the two biggest influencers in
long-term savings strategies. When it’s cheapest and less financial risk to save for retirement i.e. 40+ years to
retirement, you simply can’t afford it. By the time you can afford to pay in what you needed to in your 20’s and
30’s ,it’s not nearly enough in your 40’s because you only have 15-20 years to build up a fund. This is the
practical world the average saver lives in and the biggest dilemma, to date, the industry has failed to find an
answer to without having to jump into the hedge fund markets.
As a specialist pension and investment firm dedicated to finding innovative ways for our clients to safely create
genuine new wealth, the past few years at RGPC have been committed to trying to find a solution to a savers
true worst dilemma – ‘the cost of delay’. Our senior management team have now completed over 17,000
research and development hours, met with over 100 financial services professionals from 40+ regulated firms
and worked with an FSA and regulatory Barrister at an award winning chambers in the heart of London’s legal
district since July 2009.
Following an in depth review of the coalition Government’s recent draft proposals for pension funding, we are
delighted to announce that Private 3
rd
Party Pension Sponsorship (3PPS) will be possible with effect from 1
st
December 2010.
Essentially, 3PPS involves a private sector finance firm lending capital to individuals, who are then required to
make a pension contribution up to the maximum permitted levels. The individual can then free up normal
regular contributions to their pension and instead, redirect them to their ISA. This effectively creates the
opportunity for two investment strategies to exist together, rather than just a single strategy as is the current
mainstream solution. In theory, two investments should deliver better results than one.
The real skill with 3PPS strategies is in the negotiation with the private finance firm lending the capital at
outset and the underlying investment choices taken to help deliver an achievable commercial result for all
interested parties at maturity. That’s where RGPC has amassed highly valuable expertise.
Our research confirms that it should be possible for savers with at least 20 yrs to NRD to use 3PPS to
substantially reduce the overall cost of a target income at retirement, or substantially increase the overall
income payment in retirement.
All 3PPS solutions should therefore help achieve even greater results for the tax payer, with an average saving
in tax relief worth around 30% assuming normal market conditions. Therefore, potentially, 3PPS solutions offer
enhanced social stewardship and could be used successfully to reduce dependency on the state.

2. RGP Consulting (UK) Limited
South East Regional Office: Phoenix House, Hastingwood Road, Hastingwood, Essex CM17 9JT
Office: +44 (0)1279 899 002 Fax: +44 (0)844 567 7389
Registered at Trinity House, Sewardstone Road, Waltham Abbey, Essex EN9 1PH Registered in England No. 6529747.
RGP Consulting (UK) Ltd is an Appointed Representative of Eden Associates, which is authorised and regulated by the Financial Services Authority
A 3PPS deal can take any commercial format that the participating firms wish to offer an individual or
employer. However, in our opinion, the most popular formats will be those that tend to offer low risk to
investors and provide a fairer deal for savers.
Our research indicated that both advisors and their clients are fed up of chasing high yielding investments, as
often these were more likely to fail than to succeed. We also established that all the negatives frequently
raised by consumers about pensions, were conversely highly attractive to professional investors.
For example, the long term nature and commitment of pension investments, so often the negative focus of
consumer dislikes, can actually provide the perfect investment conditions to help reduce risk. This aspect
overlaid into certain investment opportunities is highly complimentary.
A good starting point when considering alternative approaches for pension funding is therefore addressing
much of what the BBC’s Panorama programme highlighted.
Our primary focus when selecting a 3PPS strategy for a corporate or individual would be to find a solution that
offers some or all of the following key benefits:-
 Little or no investor capital exposure
 Returns commensurate with little or no risk exposure
 Risk free capital finance terms compliant with CCD regulations
 Low or zero interest rate
 No monthly repayments during the investment term
 Investment charges that only apply when results are delivered
 Freedom to save regular amounts into an ISA provider of choice or EMIS, Share Save etc
 Low cost SIPP charges and unrestricted investment choice i.e. full RPSM investment mandate (no
restrictions)
 Commitment to provide ongoing funding support eg 5 or 10 year sponsorship
 RDR & TCF compliant terms
 Strategies that are capable of delivering social stewardship
The introduction of 3PPS provides a genuine solution to the problems faced with cost of delay. They are also
capable of addressing many of the negative issues frequently featuring on award winning financial blog sites
from irate consumers. As we have seen recently, there are no guarantees that valuable pension planning
solutions will retain the generous tax incentives provided by the government.
Once 100% of salary pension funding finally goes, how many savers will wish that they had taken advantage of
their wasted annual allowances? Which scheme member would not appreciate the opportunity of receiving a
maximum pension contribution worth up to 100% of salary this tax year?
Fortunately, we will have a solution for high earners to access with effect from 1
st
December which will help
savers make full use of their allowances, rather than wasting such a highly valuable tax incentive.
Ultimately, we can find no positive outcome for a higher rate tax payer to suffer guaranteed tax losses over
that of utilising risk free capital to secure a major investment asset. It is essential that Employers and
Employees earning between £55,000 to £130,000 this tax year learn about the basics of 3PPS before time runs
out.
It is even more relevant to professional pension and tax advisors to understand, as it could inadvertently lead
to clients suffering negative outcomes through unutilised tax allowances.
For further information, please contact Darren Say, Managing Director at RGP Consulting (UK) Limited.
Telephone 0800 567 73 89 or email darren@rgpconsulting.co.uk

3. RGP Consulting (UK) Limited
South East Regional Office: Phoenix House, Hastingwood Road, Hastingwood, Essex CM17 9JT
Office: +44 (0)1279 899 002 Fax: +44 (0)844 567 7389
Registered at Trinity House, Sewardstone Road, Waltham Abbey, Essex EN9 1PH Registered in England No. 6529747.
RGP Consulting (UK) Ltd is an Appointed Representative of Eden Associates, which is authorised and regulated by the Financial Services Authority
About RGP Consulting (UK) Limited / Wealth Connection
Formed in 2007 with a purpose of revolutionising the way savers plan for retirement, over 75% of our time has
been dedicated to Research & Development since launch. We have combined over 100 years of collective in-
house, frontline financial services experience with an unrivalled commitment to develop innovative
investment strategies that focus on genuine new wealth creation.
Ultimately, we are determined to deliver more of what our clients want and less of what they don’t.
In our opinion, the existing tried and tested structure for long-term pension planning in the UK has failed to
deliver adequate results. The negative sentiment shown by individuals in the UK today bares testament to this
fact, so revolutionary thinking is required.
We passionately believe in trying to secure a fairer deal for investors. For example, we do not believe it is right
that an investor should suffer capital losses for poor investment decision making. At RGPC we offer a client
centric proposal where clients can choose to only pay for advice that delivers positive results.
Furthermore, we will only make profit when the advice we give, makes money. In our opinion, if an advisor
holds themselves out as an investment specialist, trying to create wealth from existing assets, then earnings
should reflect the investment journey of the client. Of course, not everyone within our industry will agree with
this view, but our research indicates consumers feel let down, so we do something about it internally.
We are prepared to put our money where our mouth is. Few could question our commitment to ensuring our
clients gain access to the latest innovative solutions, having completed over 17,000 hours of research and
development over the past few years. It is the equivalent to over £3m in standard consulting fees, made
possible by dedicated commitment and personal time investment of our senior management team.
The development of 3PPS solutions is just one of several key developments that RGPC have planned. We are
currently under NDAs with some of the biggest names in the Financial Services sector, many of whom now
understand the huge potential of 3PPS and the consumer focused approach it offers.
RGPC clients are a diversified bunch, ranging from ex-Professional Footballers and Managers, through to
Actuaries and Executives at some of the largest product providers and Employee Benefit groups in the UK.
But, we also cater for the small private investor, dedicating time and resource every year to those who have
been unfortunate enough to suffer financial losses through other investment groups that have gone bust in
the global financial meltdown.
We envisage financial innovation having to move closer to the needs and wants of the consumer, delivering a
fairer more transparent deal for savers. Three generations of savers now need solutions that can help
potentially replace negative pension growth in real terms over the past decade. Whether in their 30’s, 40’s or
50’s RGPC have a range of innovative solutions that can deliver substantial enhancements to retirement
planning for many thousands of individuals.
Financial Journalists, Employers or Employee Benefit advisors wanting to understand more about how Private
3
rd
Party Pension Sponsorship could dramatically enhance benefits for their readers, staff or corporate clients
can request an introductory guide by calling 0800 567 73 89 quoting 3PPS or email info@rgpconsulting.co.uk