View more on these topics

IFAs must spell out what they do

For many people outside the profession, financial services is one of the dark arts. This is hardly surprising – there are 40,000 advisers in the UK, with probably several hundred different ways of advising.

Are you a transactional adviser, a wealth manager or a financial life coach? Do you work on fees or commission? If fees, do you charge an hourly rate, trail or piece rate? My own clients know what I do for them and what I will charge.

But the big unknown is how many clients are deterred from seeking our advice because they are not certain of what they may be letting themselves in for in terms of cost? This is where our historic failure as a profession to clearly communicate the benefits and value of what we do is at risk of coming back to bite us.

In theory, anyone in business should have what the Americans call an elevator pitch – a concise 30 to 60-second script that clearly defines what the business offers to anyone lucky enough to be trapped in the eponymous elevator on a quick ride between floors. It should encapsulate the value of our service to the client and motivate them to hire us, preferably on the spot.

Thirty years ago, if you had asked me for mine, I might have said I sell life insurance. Eighteen years ago, I would have majored on my newfound independent status and at various times since I have been an IFA, wealth manager, mortgage broker, employee benefit consultant and a financial adviser.

But all these titles, which probably mean something to others in financial services, do not mean much to clients and certainly do not represent
a halfway decent elevator pitch.

After the RDR, when we proclaim a title and demand a fee, clients may well not vote in our favour with their chequebooks. Independent or restricted status may not mean much to them and you can bet that all those who are restricted will try and turn it into a virtue and
for some it may be.

Chartered or certified status may help but again titles mean more in the industry than they do in the public’s eye. So this is where a clearly defined and well argued pitch is critical. It is perhaps why the RDR may have one surprising benefit. It will cause advisers to properly examine what they do, what they need to charge for it and how they present it to clients.

We probably all mostly deal with no more than half a dozen generic client profiles. So for each we need to be able to say for a client in this general situation we will do ABC and we will charge £x. We will recover this in the form of z.

Simon Webster is managing director at Facts & Figures Financial Planning



Chris Gilchrist: Long-term saving needs a radical rethink

Pension boffins like Tom McPhail argue that the defined-contribution pension industry has all the tools it needs to provide good savings schemes for everyone. I fundamentally disagree. In their current guise, pension schemes are not a solution at all. They need to be redesigned from the bottom up to suit people’s needs rather than being […]

Lloyds ends exclusivity agreement with Co-op

Lloyds Banking Group has ended its exclusivity agreement with the Co-operative Group over the sale of its 632 bank branches. Co-op entered into exclusive talks with the state-backed bank over the sale in December although doubts over the deal surfaced when the Co-op admitted to there being “economic and regulatory” hurdles in the way of […]

Foster Denovo appoints chief operating officer

Foster Denovo has appointed Helen Lovett as chief operating officer. Lovett joins from British Gas Insurance where she was head of change. Foster Denovo says she will be responsible for managing IT, HR, sales support and preparing the employee benefits function for the retail distribution review. Foster Denovo chief executive Roger Brosch says: “Helen will […]

MPC member Martin Weale says case for more QE “stronger”

Bank of England monetary policy committee member Martin Weale says the argument for extending the Bank’s quantitative easing programme has strengthened after the economy slipped back into recession. Figures from the Office for National Statistics, published earlier this week, shows the UK economy shrank by 0.2 per cent in the first quarter of 2012 following […]

India: too big to ignore?

By Kunal Desai, head of Indian Equities, Neptune  India is officially the world’s fastest-growing major economy and remains firmly on track to become the third-largest economy by 2030, overtaking Japan and Germany. As an accelerating labour force combines with increasing labour productivity, is India getting too big to ignore? Click here for full article   […]


News and expert analysis straight to your inbox

Sign up


There are 8 comments at the moment, we would love to hear your opinion too.

  1. Errr!

    been on their website, exactly which part spells out the costs of advice in accodance with the statements in this article?

    I might be dim, but I couldn’t find them.

  2. I like this article. I like it because it highlights more than once that some of the titles and language we use between ourselves is not recognised or understood by our intended audience.

    I think sometimes we may wonder why the public end taking poor advice from banks, buying unsuitable products or deciding not to use an adviser at all. The answer may very well be in the presentation of the service may not match the solutions provided whether they are good, bad of indifferent. How else are they going to decide on who to use?

    Articles like this certainly keep prompting me to look at my own firms language, proposition and presentation which can only be a good thing to ensure more people come our way.

  3. Spot on article

    What do you do? How do you do it? What value do I get from it? How much does it cost?

    Clients then get to say “yes” or “no” and the success of the IFA depends upon how good they are at communicating value

  4. Good article – I removed the title Independnat Financial Adviser from my business card when I realised people thought all advisers were IFAs. For a while my card just said “Director!.
    Now we describe ourselves as “Money Coaches & Facilitators” as that results in people asking “whats that then?”, which I then explain with my elevator pitch.

  5. Sounds’s like there’s quite a few people out there with a major identity crisis. What’s wrong with being an IFA? Perhaps you should concentrate more on the advice you give rather than worrying about what inane description to come up with next…’money coach’…please !!!

  6. @ Anonymous | 30 Apr 2012 8:34 am

    Beats being anonymous and not having the balls to put your own name against criticsim of me.


  7. Looks like you cope well with criticism Phil.

  8. man on the moon 30th April 2012 at 2:54 pm

    Spot on article.

    Everyone is gravitating to be Wealth Managers at the minute which sounds quite grand. As a Business sector or Profession we in the main are not good at explaining to potential and existing Clients why they can benefit from using us. Some in fairness are and they tend to be pretty successful.

    And No, I am not one of the better ones but I need to get better soon.

Leave a comment


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