RDR Archives | Oliver Asset Management

Added Value Services

December 4, 2012

Not long now until we are in RDR World proper.

We have spent more than 2 years working on, defining, articulating and then delivering our service proposition.

Or in other words, we can define to all our clients what will be the minimum they can expect from us, how will we provide this service and what the process involves.

If this is proving earth-shattering stuff for your current adviser and they are still some way off having a clear service proposition, then I suggest that they are not going to be ready to provide you with basic guidelines as to what you service might be offered in the new regulatory regime starting in January 2013.

I get the impression that a number of businesses are taking their current model, giving it a good old buffing and hoping that will be enough for existing and new clients alike going forward.

More worryingly, I hear it’s the same service with a different name but at much increased cost.

You need to ask the question, if this is all that you are being offered from your current adviser at this highly crucial time, do you see other added value services being developed elsewhere that you might be interested in?

It’s not going to be good enough to offer the current approach to financial planning without considering what else you can do to retain and attract clients to your brand in the very near future.

Virgin is a great example of a brand that covers a very wide range of services but with a core set of values that customers recognise and value whether it’s buying a can of cola, airfare or a trip into the edge of space.

Financial planners will need to consider what other useful services they can give their customers access to.

For example, we intend to have a link-up with a foreign exchange provider that will allow our clients access to better wholesale currency transactions, discounts and better rates on currency cards.

Whilst there may be a small financial advantage for the business, it’s more about developing complimentary services that are useful for our clients and help increase customer loyalty.

Focussing on your brand not your business, and what you can do to delight your clients has to be the new mode of thinking.

Roland Oliver

December 2012

Are you delivering what you promise?

October 26, 2012

As a nation we don’t half like talking about the weather, I think today so far at least 10 people have commented to me on how miserable and wet it is.

It’s a hot topic of conversation all up and down the country all year round, its either too hot or too cold, awffy windy or just doesn’t stop raining. I’ve heard more than once lately someone comment on the fact that “it was an awfully disappointing summer and now they’re saying it’s going to be a harsh winter!” The general consensus is the seasons are all over the place and although we have an expectation of what each should bring in terms of the elements, experiencing temperatures in excess of 25 degrees in March and bitter cold and floods in August is just not how it’s supposed to be.

For me, Autumn is the best time of the year, the season that delivers, does exactly what it says on the tin, rustic colours on the trees, a crispness in the air, blue skies and pale autumn sun with the first frosts round about now. It’s the season of mists and mellow fruitfulness and all that and I just love it, it never disappoints.

So where am I going with this? Well the idea of something delivering and doing exactly what is promised seems quite pertinent in our industry just now. With the Retail Distribution Review (RDR) deadline fast approaching every firm is in the process of reassessing its internal processes, Adviser qualifications, the client experience, the services on offer and how these are paid for.

From day one for this business it has been crucial for us to have a defined process and to offer a service that is valuable to all our clients. Over the last 18 months we have given much thought and discussion to how this process can continually be improved and how we can communicate clearly to all our clients each of the stages along the way. This applies to all contact from the initial discovery and fact finding to research and implementation right through to following up once the initial business is completed and then carrying out ongoing reviews at the agreed time period.

We take great pride in delivering what we promise and use the Expert Team and a robust back office system to keep track of where in the process all our clients are at any given time and to ensure reviews happen as and when required. We like to think we are delivering what we promised at the outset and that our clients know what to expect, they value the service available and develop a long and personal relationship with us.

Just last weekend one of our longer standing clients passed away and on the Monday morning his daughter contacted me to inform us of what had happened.

She noted that one of the first things the family discussed over that weekend was that it would be important to let us know as soon as they could as they valued our relationship and knew we would be able to assist with the next steps for the family in terms of support and also advice on what is to happen with the existing investments and pensions.

This contact meant a lot to us and to me personally, as it was a clear demonstration that we are important to these clients, we weren’t an afterthought or the last people to be contacted we were one of the first and that is a strong testament to our relationship with our clients and how they look to us for reassurance and guidance on many matters

With the coming RDR deadline all Advisers should be investing in higher qualifications, better services and more transparent charges so clients now shouldn’t be afraid to ask their Adviser exactly what advice they offer, how their process works, how well qualified they are and how they plan to charge for their services. All of these points should be easily answered if they are ready for the post RDR world and all firms should be able to deliver what they promise from the outset.

We are ready for business post RDR and will continue to offer our existing and new clients the best possible service at all times. We are committed to providing expert advice with a clear charging structure and know that our Wealth Management service can help in terms of providing guidance to all our clients that the financial steps they are taking are right for their current stage in life and will help them achieve future goals.

If you would like to hear more about our service or would appreciate a second opinion on your existing advice or arrangements we would be delighted to hear from you.

Dr Claire Armstrong

But My Clients Value Me, Right?

June 8, 2012

Amongst other stories of questionable advice heard this week, my favourite was (and I’m certain this is what was said) that investing in Ethiopian water funds would be a good basis for long term pension planning. Clearly there is still a huge gap in existence between good and bad quality IFA firms and this lead to some thought on the process by which clients “select” their financial adviser of choice.

Can they recognise whether the business they might engage with has a high quality service that they will value?

What is available within that business that helps give potential clients the information to make a reasoned judgement?

Or is it simply the winning smile of the adviser?

Recommendation and personal knowledge of the individual concerned might figure highly in the criteria used (amongst a whole range of other things before you start calling)

Whatever it is that gets you there, once a relationship is established, does the client value the individual giving the advice or the advice itself going forward?

Or even a bit of both.

I’ve heard this week that well worn phrase “my clients value me over any fancy-dan report/
service/investment strategy. I could, but don’t, give them” and in context of RDR Adviser charging this needs a little further investigation I believe.

And as one who has indeed uttered the above phrase in the past but has since had successful treatment to stop doing it, I felt qualified to comment.

Many years ago, I opened my first personal bank account with the Clydesdale Bank because the local manager had set up a help desk in the Office in which I worked.

At the time I thought it would be handy to know the local “man.”

Through time I switched to The Royal Bank of Scotland and have been with them for 25 years.

I used to value greatly the staff at the branch in Sauchiehall Street in Glasgow who knew who I was and sorted any problems I had quickly and efficiently. They also put more staff on at lunchtime.

Contrast this with a recent visit to the local Mussleburgh branch where I watched the manager look at the ever growing lunchtime queue, put her coat on and get the hell out of Dodge!

I suspect if I were to create a list of criteria to select a bank today, it would differ greatly to my original drivers.

Number and handiness of ATM’s, online service capability and reasonableness of charges might hold more sway over how nice or helpful the staff were.

So, do I value the service or the people?

In this case, clearly the service has more interest to me than the staff, but imagine how delighted I’d be if I got both.

Do I sense that the bank has more interest in increasing shareholder value? Or do they want me to value their fabulous services? The latter would, in the long term, lead to a more robust version of the former than any quick tricks.

I will never deny the right of any business to make a profit but if you lead with this as your defining criteria, the customer will suffer in poor overall service (and, as I’ve said before, it takes more than a fancy ad campaign to convince me otherwise).

So back to my point (at last, some may say).

How do you create a list of criteria for selecting your financial adviser?

Trustworthiness, honesty, experience, qualifications, recommendations, process etc etc.

You may well also value them as individuals but this need to be backed up by a defined range of services, actions and documents that helps support the warm fuzzy glow.

In the world of adviser charging, it’s not enough to assume that your clients will be happy to pay for this emotion. In fact, it never has been enough.

Detailing why existing and potential clients might need and value your service, how it is delivered and what the clients can expect from you, is a basic building block of today’s advice process and if your not already able to do this (and document it) you’re dead in the water.

Clients may indeed value you more than any fancy-dan report/service/investment strategy but it certainly wouldn’t do any harm to provide this too. And I’m pretty sure clients want the information in the correct format to back up the words.

This approach doesn’t need to make things more complicated. It can be a complex process but conveyed in the right terms.

Empathy, reassurance and practical help. It’s all us clients ever ask for.

Big and small business, take note.

Roland Oliver
June 2012

The FSA/FCA & Post RDR Advice

May 4, 2012

A few thoughts following conversations with two other advisers about RDR now coming into sharp focus and how already businesses are thinking about what the post-RDR world might be like.

The FSA continues it’s death throes and appears to lash-out in a number of directions, none of which are particularly helpful and endearing.

Let’s face it, any regulator is going to be a pretty easy target. I hear from friends and clients in other industries about there respective oversight bodies and the names are interchangeable but the problems remain common.

I will return to this in a moment.

One of the very positive outcome of RDR thus far for me, is the genuine co-operation amongst forward thinking businesses and the willingness and desire to help each other.

Certainly a big change from the clashing ego-fests of Network and other bun-fights of the past. (that doesn’t mean that there aren’t IFA’s out there that I’d rather saw my leg off than spend 2 seconds in their Bond-addled company – But I digress…)

During our conversation, one noted that the FSA had stated that they were concerned that IFA’s were “shoe-horning” clients into an advice process…

Once I’d placed the tablet under my tongue and my vision had returned to normal, I was able to think about this statement.

I thought that the whole (or some) of the point of RDR was to focus on the advice process, have a defined and streamlined investment strategy and a clearly laid out structure for delivery along with transparent details on costs.

Naturally, in the course of considering how this might work in individual businesses you might also define exactly what type of clients you can work with and how you can best provide value to them.

If that means some prospects are headed off at the pass in favour of clients who “fit” and will be best served, is that wrong?

As regulators (in any industry) create rules and regs, then it’s natural for the participants to assimilate and adapt. This doesn’t mean that you can throw the head up when you get a result you don’t like.

Next week; “common sense – a forgotten art.”

Roland Oliver
May 2012

Resistance is Futile!

February 24, 2012

Those in the industry would have to have been living under a rock to be unaware of the coming Retail Distribution Review (RDR) and its impact on all firms in the industry post December 2012.

This period of transition throws up three main areas for consideration which are qualifications, service propositions and charging structures. It also involves considerable planning around the systems, processes and controls we need to have in place to implement and support these considerations.

I could blog on each in its own right (and may well do so) but for now I’d like to focus on the qualifications aspect, how this affects everyone in the business and feeds into the quality of service we can offer now and going forward into the brave new post RDR world.

I’ve been in the industry now going on for 10 years and it’s fair to say the last time I sat an exam wasn’t exactly yesterday. I thought my studying days were a dim and distant memory so it has been unnerving and also quite refreshing to find myself delving back into the study books and revisiting old and new topics.

As my husband said at the beginning of this cycle of studying “resistance is futile, just get on with it” and you know he was right. There was nothing for it but to just get in with it and now I find myself enjoying the work, yes, I actually said enjoying!

It has taken a few months but I am now of the mindset that these exam are not a necessary evil but in fact are a means to refresh my knowledge, a way to better myself and ultimately will equip me with the experience required to do my job to the best of my ability. The knock on effect of this will of course benefit not only the team I work with but every client I help look after.

I’m not alone in pursuit of improved knowledge, my colleague Malcolm is working on the same qualification and Roland is working towards Chartered financial status.

It strikes me that in this current climate that clients are looking to firms who are knowledgeable, capable and professional and that means we have a responsibility to understand the rules and regulations within our industry and the legislation around the services and products we offer.

We pride ourselves in being proactive and not reactive and we can only do this with a sense of confidence if our knowledge is up to date. We need to be constantly striving to better ourselves so we can say at any given time that the service and advice we offer to our clients is the best it can be.

The first issue for 2012 of The Personal Finance Society magazine is headed up with the CEO (Fay Goddard’s) letter to members which is titled “Helping you be the best you can” and I think this should be the mantra going forward into 2012.

I believe anyone involved in the industry at present should view the need for extra qualifications as a way to help them be the best they can be which will ultimately benefit the firm and the client.

If you’re currently reviewing the service you receive from your Adviser and looking at whether the proposition provides value for money you might also want to consider how well that firm is embracing the need to refresh and improve on their qualifications.

Is everyone involved in managing your finances striving to be the best they can be?

Dr Claire Armstrong

Client Relationship Manager

24^th February 2012

The impact of the Retail Distribution Review

July 1, 2011

We had our interview with the FSA this week on their proposed new supervisory structure looking at businesses from a governance, control and culture perspective.

This was a very interesting experience for us as it would appear to have gone well and it was rewarding to be able to clearly articulate to the regulator what we do, how we do it and what it means for clients.

I’ve seen a raft of changes over the last 30 years in this industry but it finally struck me after our meeting with the FSA this week, that the changes proposed with the Retail Distribution Review are the the most far reaching of all.

The idea of identifying your service to clients rather than how you’ll pick them a product I believe is well beyond a vast number of current IFA businesses.

I also believe if your current adviser is not already in a post RDR position, they will not be able to adapt before the deadline date of the end of 2012.

I finally made the decision this week to fully remove commission from all we do for clients in favour of a advice based fee system and it was an enormous weight off my shoulders.

It frees up the mind to concentrate on the right advice and already I see clients more at ease with a monetary system that defines what the advice costs and not about getting the product sold.

A couple of very serious questions will have to be addresses by clients in a short space of time; will my adviser still be there post RDR and will he have a service that I’m willing to pay for?

If you would like a second opinion on your current arrangements, the type and structure of the advice you are receiving and how you are paying for it, please give me a call.

Roland Oliver