The Price of Advice

In the build-up to – and in the aftermath of – the Retail Distribution Review advisers up and down the country have been scrambling to find a charging mechanism that works.

For many the end of commission has been a death knell; bond pushers that used to take up to 7% initial and advisers that offer no ongoing service have found themselves suddenly having to become transparent and losing client interest as a result.

There is no doubting that this is a very positive thing; for a long time the smoke and mirrors in financial services have served to cloud the clear picture to consumers.

In terms of pure economics, the worst thing about lack of transparency in a marketplace is the fact that the market cannot operate efficiently and competition is hindered. And the moment competition is hindered consumers get a bad deal.

For a charging structure to ‘work’ it must be fair, not daunting, actually cover the work being done and cover costs the clients don’t see – regulation, compliance, software etc.

The charging structure must also be manageable. We have seen difficulties with some investment platforms as to the logistics of how the product fees to the adviser are actually generated. Some say nothing has changed, some require a wet signature on a fee statement for each and every piece of business, and some require us to manage a time consuming and complex method of moving money around within a client’s investment to cover charges.

As a business trying to do the best by our clients and get paid properly for the valuable work we do, without any hidden agenda, it can be challenging.Edinburgh_Castle_-_geograph.org.uk_-_28

We have discussed every way we can structure our fees so that they are attractive, fair, workable, easy to implement and simple.

Each time we reach this undeniable fact: a simple initial and ongoing fee, not linked to the value of the assets managed and paid externally from any platform, is the only way forward.

It will take time to implement fully, but we shall be extracting ourselves from any overly complicated or confusing charging and shouting the virtues of this from the ramparts of Edinburgh Castle.

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The Greatest

The use of positive affirmations is often used by personal and business coaches as a way of creating the right mindset in order to help you achieve goals and targets that can appear beyond you.

Tony Robbins has long used the fire walk as away of demonstrating how your mind can overcome obstacles (in this case 1000 degree burning coals) to achieve great physical feats.Muhammad Ali

Famously Muhammed Ali declared “I am the greatest” and not many argued that he wasn’t.

My personal favourite was attributed to Henry Ford who said “whether you think you can or think you can’t, you are right”

All very touchy feely and New Age, Roland, but what’s the point?

Following on from my “No Hidden Agenda” blog, there were a number of positive comments. Many agreed this when dealing with large financial institutions and how that it is incredibly difficult for these types of business to win back customer trust.

There might be real determined and skilled management at the heart of these businesses but if the people really don’t believe, then you’re fighting a losing battle.

My local branch of Lloyds TSB were throwing out so may negative and unhappy vibes recently at the teller level, I nearly got the rope out…

Naturally it leads to a poor customer experience and unsatisfactory feeling all round.

I truly pity the poor front-line staff at any Cypriot bank when it opens its doors again on Thursday.

I’m very lucky that the people that work with me have a serious desire to provide the best service they can to clients and go the extra mile.

We like to believe that this approach is both nature and nurture but you have to continue to want to do better and create the right business attitude and environment to do this.

Providing a better service, more enjoyable customer experience is what we are all about.

I personally don’t think banks in the UK will ever regain their status in the eyes of the public and the new paradigm is businesses that do care about their clients and the service they offer.

I also think as a nation we need to vote with our feet more than ever and if you have any doubts about how you will looked after and treated by any business, then look for somebody else.

Our Second Opinion Service is designed to provide prospective clients with a view on the current service they receive for their adviser and suggest one of three possible outcomes;

  • continue with your existing arrangements as it works.
  • here is the name of an adviser that might be better suited to your requirements.
  • or you might want to considering working with us.

Either way, you’ve nothing to lose and we might just be your greatest decision.

Roland Oliver

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No Hidden Agenda

As previously mentioned by Claire in her blog, we recently ran a seminar on our approach to customer-led Wealth Management.

Of the number of noticeable comments made was that the attendees felt that the was “no hidden agenda” in our presentation and that people could see that we clearly had an interest in providing a service that had them at the centre of it.

As big business and politicians continue to try and win back our trust, the phrase “no hidden agenda” keeps coming back to me.

We are all incredibly sensitive to this feeling.  Dealing with anybody providing a service of any type today must make sure that our needs are being met in a way that suits us first and not the provider.

Whether its a local restaurant, or high street bank,hiding you must be clear about what you are providing to your customer as nothing will sour the relationship quicker than the discovery of a hidden agenda.

The gaining of a client’s trust is a privilege that is repaid in long term customer loyalty. In the post RDR world when fees are going to be scrutinised, ensuring you don’t lose it through any hidden agenda is crucial.

In a day when the the Cypriots are perhaps finding out about another hidden agenda, its clear to me that we need to continue to be clear, open and honest about what we do for our clients.

In case you were counting, I mentioned the phrase “no hidden agenda” 5 (6, if you include this one) in this short blog.

Nothing to hide here.

Roland Oliver – March 2013

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