Engaging Advice Clients – The First Five Minutes – Part 1

clock face stopwatchWhat do you reckon?

Are those first five minutes of the advice conversation between adviser and client crucial?

Or is that the time for good old-fashioned rapport building?

In the past ‘advisers’ (or ‘product distributors’ or ‘salespeople’) focused those first five minutes in one of two places – either get the client to ‘like’ them, or differentiate the features of their products or services as primary means or the ‘hook’ to proceed to next step of engagement.

Will that work as well in the future?

I don’t believe so.

I reckon our future clients will be more discerning, future products will be more similar, new competition (& pricing) will be tougher,  and ‘old ways’ of establishing the potential advice relationship will just be harder.…

What does success look like?

iStock_SuccessWhen people hear the ‘certainty proposition‘ for the first time, no matter how much they might like the sound of it, they understandably ask how will they be able to determine the value or success of this approach?

Prior the delivery of a ‘certainty’ proposition, the majority of advice propositions focused on the value of what was being offered (i.e. specific tax, investment, or risk advice), rather than why these offerings and products might play a valuable role in the unique financial lives of the clients purchasing them.

For reasons best tracked back to the product origins of today’s financial planning industry, consumers have focused on determining the value of specific mortgages, investment returns, self-managed super funds rather than the destinations these products may lead them to.…

What I learnt about financial advice, FoFA, and best interests from toll roads…

Financial TollRoads?On Wednesday night a couple of weeks ago the latest round in the Future of Financial Advice (FoFA) saga limped through parliament heading for who knows where. Due successful lobbying by financial institutions, plus noise from incumbent industry associations and funds, Australian politicians continue to demonstrate a fundamental misunderstanding of our future financial advice market.

Despite original intent, the FoFA legislation is less about providing Australians with financial advice and more about flogging financial products. To illustrate, think about toll roads for a moment…

Consider the major financial services suppliers (i.e. Westpac, AMP, National Australia Bank, Industry Funds, ANZ, CBA, Macquarie et al) as toll road suppliers (Macquarie already understands the similarities!).…

Focusing on high net worth clients? Really?

iStock_AustralianCurrencyIs your advice firm striving to crack the ‘High Net Worth’ market – i.e. rich people?

It’s not getting a bit ‘old-fashioned’ for advice firms is it?

I suppose if you use other people’s money to make your money, the high net worth client is a logical focus. Similar to the bank robber‘s attraction to banks (i.e. follow the money!)

There are lot of reasons to focus on this market.

Apart from having lots of money, the high net worth client is usually accustomed to delegating.

The people with the big bucks often have the big houses, the big boats, big jobs or big businesses and take big holidays.…

Trying to explain best interest (and governance)…

iStock_SlipperySlopeAheadSpoke to a financial advisory firm last week who were very excited about their very own investment platform which they now intend to offer to their advice clients.

The ownership of the platform is a couple of the original owners of the financial planning firm. Wherever possible all new funds will be deposited onto the platform. They intend to gradually switch the majority of existing clients funds across when they review their advice clients. The platform is a part of their longer term thinking to leave their existing institutional license and obtain a licence of their own for greater independence.

They also have ambitious plans to roll up and acquire several similar like-minded advisory firms across the country.…

Advice is not a product – Part III

iStock_IntegrityHomes aren’t products.

Most Australians wouldn’t pay strangers to squat in the rooms of their homes.

Why do Australians accept the fees from the many faceless manufacturers, platform providers, planners, fund managers who crawl all over their superannuation?

Because that’s who has the power in today’s superannuation market.

Because the power in today’s superannuation marketplace is held by the large banks, the huge superannuation funds and insurance companies and because none of these make a cent from pure advice, it’s easy to appreciate how Australians have been conned into believing that superannuation is just another ‘product’ for a far-off retirement.

As long as politicians, regulators, banks, manufacturers, the media, financial planners, and on-going financial services inquiries (e.g.…

Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.