View more on these topics

Simon Chamberlain: ‘Advisers feed off crumbs from providers’ table’

Succession chief exec says clients do not want with advisers they do not think are wealthy enough.

Succession Group chief executive Simon Chamberlain says advisers need to increase their share of the value chain to stop the cycle of advisers “feeding from the crumbs” of insurers and fund managers.

Speaking at the Institute of Financial Planning annual conference in Newport, Wales, last week, Chamberlain told advisers they need to become more profitable as clients are reluctant to give their money to someone they do not think is wealthy enough.

He says: “Clients, particularly high net worth individuals, don’t want to give their money to someone they think is poor. We have just finished buying a set of five firms and they have got a cheque for £12m. In the next three months they will be visiting their clients with £12m in the bank. If you want to deal with millionaires you might want to be one.”

Succession has 60 member firms, and has completed the acquisition of the first five members for £12m.

Chamberlain went on to tell delegates they should increase their share of the value chain by taking control of clients’ investments, and argued Succession’s vertical integration model is “the only way forward”.

He said: “I have never seen so many poor, successful financial advisers in my life. Insurance companies and fund managers make us feed from the crumbs off their table. You can own it all, you just need to know how.”

Aurora Financial Planning chartered financial planner Aj Somal says: “It is dangerous to generalise and there are actually some very profitable advisers out there. The argument that advisers are ’poor’ is probably quite a narrow minded one.”

Recommended

FCA-FSA-Building-Sky-Contrast-700x450jpg
1

Advisers escape FCA approved persons regime shake-up

Advisers have escaped being caught by reforms that would have seen the entire approved persons regime scrapped and replaced with a new regime. In its response to the parliamentary commission on banking standards, published yesterday, the FCA states that the new regime will only apply to deposit-taking institutions such as banks, building societies and credit […]

Business-Money-Currency-General-Finance-Notes-700.jpg

Cash in funds of funds at a record £83bn

Multi-asset and multi-manager portfolios in the Investment Management Association’s Mixed Investment 20-60 per cent shares sector are continuing to enjoy their day in the sun, as the amount held in funds of funds hit a record £83bn. According to the latest data from the fund management trade body, Mixed Investment 20-60 per cent Shares notched […]

FCA-FSA-Airplane-700x450.jpg

FCA defends ‘pragmatic’ data collection despite anger over rising costs

FCA chairman John Griffith-Jones has defended the regulator’s “pragmatic” data collection despite industry concerns over escalating costs. Speaking at a Wealth Management Association conference in London this week, Griffith-Jones said good data is a precursor to good regulation. Griffith-Jones said: “While I can sympathise, and have been lobbied pretty vigorously by your leadership, about the […]

Chris Davies: Identifying the new risks and opportunities

After speaking at last week’s IFP conference, on the heady subject of Behavioural Economics and the FCA, it was very evident that there was optimism in the air. The survival of the RDR qualification cut-off and a move to professional services seems to have given a sense of confidence to those firms who have taken […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment