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.”