Thinc wealth management director Tim Parsons says many advisers are being taken in by the lure of a so-called shift in the way of doing business.
He says: “The new wave of disenchantment is a sad but inevitable by-product of the shifting landscape within the retail advice sector as more firms hitch themselves to the bandwagon without first looking at some fairly fundamental issues.”
He says the new model argument is not about being better at the job, nor is it about fees versus commission, but is just a different way of doing business that will only attract a certain type of client or adviser.
Parsons says: “This different way of doing business has certain characteristics and it is the deeply profound nature of those characteristics that most businesses fail to adopt but think that paying lipservice to them will turn them into the movers and shakers that will attract like-minded recruits. It is only after a while that reality bites and disenchantment follows.
“Making promises is easy and unfortunately endemic in our business. What is not endemic is having the systems, processes and intellectual capital to deliver on the promises.”