Since the start of the 2024, the delivery of financial advisers’ ongoing services has been under supervision.
You may remember earlier in the year…
You might think it’s odd that clients don’t seem to care about their financial future.
But often it’s not that they don’t care.
It’s that the value of the annual review meeting needs to be repositioned in their mind.
Or that there is some discrepancy around the value of the advice.
And much of this boils down to communication.
At the recent Consumer Duty Alliance conference, Nick Hulme alluded to an upcoming FCA publication, which will have significant consequences for the sector.
In the meantime, here are 5 questions to help you approach the design and delivery of your ongoing services:
1. Are your services appropriate for clients’ circumstances?
First things first. Do your clients actually need an ongoing service?
If they do, make sure that particular service matches their need.
If they don’t, then your communications will need to be carefully crafted so that they understand the reason behind the change and still trust you.
2. Do your services provide fair value?
How are you aligning the benefits of the service with the price they’re paying?
And how does this vary for different client groups (e.g. higher/lower value clients or clients with complex/non-complex needs)?
Many firms charge a standard 1% across the board.
3. How clearly are your services communicated to your clients?
Clients mustn’t be in any doubt about what they’re paying for.
Your services, your costs and your cancellation process all need to be CRYSTAL clear.
Ambiguity around how advisers and planners earn their money is a big driver of mistrust. Yet with clear communication it can be turned around so quickly.
4. Are your services delivered within the terms of the agreement?
Essentially, have you done what you promised to do?
You need robust record-keeping and monitoring to demonstrate this.
5. Are you charging clients for services they haven’t received?
Have you got processes and controls to link your ongoing charges to delivery of your service? And are you taking action where you have identified issues?
Personally, I’m delighted that this is going to be an area in which more light is shone because it will go a long way to build more trust in the profession.
If you’d like some support to improve your retention, revenue, referrals, then please contact me.
Your clients will love you for it!