View more on these topics

Alexander House boss: The case for treating advisers fairly

Kelly-Nick-2012-700x450.jpgA recent article in the Daily Telegraph once again reinforced the prejudices and stereotyping we, as professionals, face every single day.

Apparently, there are not enough doctors, teachers, accountants, engineers or quantity surveyors in the UK.

I suspect if I look hard enough someone will be extolling the virtues of estate agents and traffic wardens. But who cares about professional financial planners?

We operate in (probably) the most highly regulated profession. Unlike surgeons, who can simply move between hospitals, financial advisers are required to evidence qualifications, fit and properness, technical knowledge, continuing professional development and past performance to transfer from one business to another – yet the business they join is primarily accountable for what the adviser does anyway.

Nick Kelly: Dealing with culture clashes

The number of people leaving or planning to retire, exit, or slow down far outweighs those often self-funding their way into the profession and then taking personal liability for the next 20+ years.

Unregulated marketing companies, claims management (ambulance chasers) and even our own regulator occasionally can be accused of painting an unflattering picture.

But middle England needs financial advice. Not robo-advice or some other self-service fad, but honest human professionals helping people achieve their goals in a sensible and realistic fashion. There are just not enough of us.

Moreover, we have failed to unite in presenting our case to the masses, which is why some are inundated with new business and others struggle to find new clients.

Since RDR, I’ve been amazed and disappointed by the number of professional people who genuinely believe adviser charges are too high and our services too vanilla. I’m no macroeconomic genius, but any market with strong demand and static (or reducing) supply does not lower its charges – it increases them.

How advisers prove their value for money

Most firms I’ve met in my 30 years in the profesion are under-capitalised. While many are content to be lifestyle businesses, many more could be a lot more if only the firm could generate the income to reflect the work, the risk, the costs and the resources necessary to deliver professional financial planning advice into the future.

I believe the commission standards that were paid to advisers in bygone days should not be the benchmarks for charging in 2018.

For me, treating advisers fairly is about paying a fair fee and being confident in receiving a quality service for years to come. In return, we need to invest in future generations, in our public persona, in our infrastructure, in our resources and in our technology. We need to overcome the constraints of a fragmented cottage industry and start to speak with one voice.

I believe we all have a responsibility to support the adviser community by demonstrating why this profession should be allowed to flourish alongside others regarded as expert in their field. It’s only fair.

Nick Kelly is chief executive officer and founder of Alexander House

Recommended

Light-bulb-innovation-idea-700x450.jpg
3

New FCA directory to make advisers’ histories searchable

Advisers will be included in a new directory proposed by the FCA aimed at helping consumers and other firms check the status and history of people working in financial services. The directory would include people who hold “senior manager” roles that, under the new Senior Managers Regime, would need FCA approval and also people whose […]

Boulding-Adrian-2012-700x450.jpg
1

Adrian Boulding: Robo key to advisers’ survival

Last month, the FCA released its findings from its review of automated advice providers. The results looked worrying for robos, with concerns flagged in the areas of suitability and fee disclosure, in particular. But while it is clear some online players need to do a much better job, robos more broadly are far from being run […]

Battle to save collapsed DFM’s assets continues

Administrators are continuing their battle to return money to clients of a collapsed discretionary fund manager as they raise the prospect of going to court for bond interest payments. London-based DFM Strand Capital had around £86m in funds under management when it was declared in special administration by the FCA last May. In a progress […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com