It will be difficult for advisers to marry up the “intangible benefits” that an IFA provides with the reality of having to ask for an advice fee, says Taxbriefs editorial director Danby Bloch.
Speaking at a Money Marketing round table on adviser-charging last week, Bloch argued it is difficult for advisers to put a price on their people skills.
He said: “It is very hard to deliver a fluffy, lovely advice service which has got all sorts of intangible benefits to it and then say there is a hard fee that a client has to pay.”
Ernst & Young director of financial services Malcolm Kerr said: “It is difficult to put this in a glossy brochure but there is more to being an IFA than the left-brained technical stuff. Clients value reassurance about not just their finances but also their retirement and their fears and aspirations.”
But Tax Incentivised Savings Association director of policy Malcolm Small said: “The future of advice is around two things – investment management and taxation. Advisers’ value should be judged on whether the investment return has beaten the benchmark, not all this fuzzy stuff.”