PIMS 2010: IFAs should help lawyers change models
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IFAs should take advantage of the rapid consolidation expected in the legal sector to form business relationships with solicitors, according to Sifa.
Speaking onboard PIMS today, Sifa development David Seager said the likes of Tesco and the Co-Op will soon offer transactional legal services to consumers for half the price a solicitor charges.
He said IFAs can help solicitor firms build lasting relationships with clients and move them away from a purely transactional business model.
Seager said: “There is going to be huge consolidation in the legal sector. The introduction of Tesco legal services will appeal to a number of consumers because they already have a client relationship with Tesco. They will be able to get the same transaction for half the price and that is where consumers will move if they have no client relationship with their solicitor.
“Solicitors themselves say they have 20 per cent client retention. The best thing IFAs can offer solicitors is client contact. They regularly see their clients, review their portfolios and can involve the solicitor in the process to turn that person into a client of the solicitor.”
Seager added that IFAs are in a good position to offer business consultancy to solicitors who are trying to change their business model.
He said: “IFAs have already changed from a transaction-based sector into a client-focused, professional industry. We are in a very good position to offer business consultancy to law firms.”
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