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The keys to best practice

Life business development manager Andrew Lock says successful firms after the RDR will need a clear client value proposition and ensure they are not dependent on a key person.

He said: “The best practice firms have a clearly defined client value proposition to demonstrate to customers the value they get from their service. It must state who you are as an advisory firm, what you do, how you do it and how you charge for the advice.

“The second point is about independent income generation. We all know commission is about to disappear so firms must generate independent income str eams from clients. Typically, we see that happen as a firm adopts a new business model and, in particular, starts to use a wrap platform.”

Lock said firms must align stakeholders within the business to ensure all staff are motivated to achieve a common end goal and there cannot be a “keyman dependency” within any firm, regardless of size.

He added: “Risk management must be built into every process. Best practice firms embrace regulation and ensure it is woven into the fabric of the business.”


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