Tenet Group risk and regulatory director Caroline Bradley discusses the holistic process of the advice profession ahead of Money Marketing Interactive Harrogate.
What soft skills are needed for a modern adviser and why?
Advice is becoming a more holistic process rather than being event driven. Advisers need to be the professional consultant their client’s value to guide through their life journey. They need to be good listeners and pick up the soft facts that will really improve their view on the client’s needs.
How can advisers show they are value for money?
Annual reviews should include review of client goals, progress and investment reports, review of risk profile, update of cashflow model, review/rebalance of asset allocation and income review. Presented to the client at a meeting at least annually to demonstrate real value to the client.
Are profit levels across the advice industry sustainable?
Yes, although cost of regulation, FSCS levy and PI insurance are increasing. Most firms are able to make sufficient profits and few firms are struggling to find new client’s. Many firms are turning away clients and may have issues servicing clients with smaller portfolios on a profitable basis.
Will fund, platform, or advice charges really cave to downward pressure?
I don’t believe it’s a race to the bottom, there will be price pressure for funds and platforms but there is a great deal of client inertia and most will remain with their current platform. Advice charges that were typically 0.5 per cent ongoing post RDR are increasing with many firms now charging 1 per cent.
What will the advice profession look like in 10 years’ time?
Clients will still interact with their client’s often in person but we will see gradual increase in the use of technology. Client portals will be more common with instant access to portfolio valuations. Open banking is likely to populate fact-find information in the future and the pension dashboard will make tracking client assets more straightforward.
Bradley will be taking part in the disclosing costs and charges panel at Money Marketing Interactive in Harrogate on 12 September.
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