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Advisory role could split between relationship managers and technical specialists

Aifa says some firms may look to split the traditional advisory role between client relationship managers and technical specialists.

In its RDR paper Adviser Horizons, published today, Aifa highlights the rise of the paraplanner and expertise of other non client-facing staff within IFA firms.

It says some firms may look to evolve current specialities to create a clearer separation of roles with a split between client-facing relationship mangers and non-client facing technical specialists.

The paper says many management consultancy firms operate a similar approach.

Aifa says this could create a “grey area” over responsibility for advice which would have to be resolved. “The answer to this question depends on how far along the fact-finding and advisory process the individual travelled before handing over to a specialist- and this will be different between each firm,” says the paper.

The trade body suggests that advisers looking to leave the industry due to the RDR could look at other options such as becoming an introducer or an introducer appointed rep to a firm. Aifa says individuals would not be able to give regulated investment advice but could still work with clients and provide new business sources for the firm.



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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Am already working on this business model and converting to a management consultant. This will substantial reduce costs to clients and if the red tape and unnecessary compliance work is rationalised, then we will have a serious and attractive proposition to give to the mass market, as well as HNW clients. But now need clarification on the ‘divide’ between advice and guidance/ generic planning.

  2. Monsieur Reynard 5th August 2010 at 10:11 am

    At last there are some signs that the Industry is beginning to think about a constructive response to the RDR – and challenging the FSA’s thinking within the existing legislation.

    I believe that undertaking fact – finding isn’t a regulated activity, and presenting a recommendation isn’t a regulated activity. I think making a recommendation consists of analysing a fact-find, identifying the customers priorities (those that they can afford to address) and advising them what action they should take, all supported in writing with appropriate research.

    It follows that the skill sets and behaviours of the two roles are different. The customer facing role requires the inter-personal skills traditionally associated with a trusted adviser. The technical role requires an obsession with detail, thoroughness, and ensuring that the paperwork is right.

    What better way to make use of a long -standing IFA’s knowledge and experience of his customers than to act as a relationship manager- leaving the QCA level 4 paraplanner to actually formulate the recommendation?

    The FSA is full of individuals who are patently incapable of thinking out of the box- IFAs tend to be imaginative and entrepreneurial. Come on ladies and gentlemen, make the FSA think

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