Pressure on financial advisers has never been greater.
The rapid pace of regulatory change, an uncertain investment outlook and growing demand for better technology are just some of the pressures advisers experience today. All of which implies that an adviser’s life can only become more difficult and more stressful.
On the face of it, pressures like these could make advisers want to quit the profession altogether. However, when I talk to them, I find more often than not that advisers are as keen as ever to deliver a great service to their clients and, perhaps more surprisingly, are optimistic about the future.
Advisers trying to offer too many services may find this approach expensive and time-consuming
So what motivates people to stay working as a financial adviser, and what do they think comprises great client service? To find out, we asked advisers at our recent investment conference what they thought their clients most value, and what aspects of their work advisers themselves most enjoy.
When we asked advisers what they think clients most value, 76% said it was the adviser’s ability to ‘understand [client] goals and aspirations’ and ‘clear and practical financial plans’. And an overwhelming 84% of advisers most enjoy ‘seeing clients achieve their goals’.
Which is a benign coincidence – advisers are happiest when doing the things their clients most value!
Conversely, only 10% of respondents at our conference identified ‘investment advice and recommendations’ as something they believe their clients valued, while advisers themselves strongly dislike ‘product research and selection’ (in fact no advisers at all rated this as their first, or even their second, choice in terms of what they enjoy about their work).
So it would appear that another happy coincidence occurs – advisers shouldn’t spend too much time on the disagreeable task of researching and selecting products, but rather focus on activity that their clients value much more highly.
If clients most value the deep and personal relationship they have with their adviser, shouldn’t advisers spend more time on this aspect of their business, and less on the ancillary but necessary tasks?
It may sound flippant – of course, advisers need to spend some time on things other than developing their client relationships – but there must be a way of maximising the amount of time advisers spend doing things that they not only enjoy the most, but that are also the most valued by their clients.
Back to the drawing board
In my mind, I see the adviser as akin to an architect, exploring options with their clients and then planning and overseeing the build of their perfect financial future. Contributors to the build, like discretionary investment managers, offer specialist support but are not the key directors of the operation.
Like an architect, advisers control the overall client plan and delegate elements of the project as required.
For a client with long-term financial planning needs, such delegation might include complex tax matters, accountancy, legal services, trusts and probate, as well as investment management. The client benefits from the collective expertise needed to deliver the plan, but not every service must be delivered by their financial adviser.
Indeed, advisers trying to offer too many services to support the delivery of their clients’ financial plans may find this approach expensive and time-consuming. Furthermore, it can dilute resources, detracting from the adviser’s central proposition.
So if you’re wondering how best to deliver the service clients really value from their financial adviser, you may be reassured to know that rather than focusing on the detail of delivery, what they really value is probably what you most enjoy: identifying client goals and building the plan needed to achieve them.
Lawrence Cook is director of marketing and business development at Thesis Asset Management
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