The Future of Financial Advice
Change sweeping the industry
The environment for financial services never stops changing. Over the last few years, many traditional areas of sales have been swept away by a number of different forces. We believe that the modus operandi of the 'general practitioner' adviser, eking out a living in the domestic market is no longer viable.
So what is left of the great “middle market” that supported the bulk of the industry for many years? In the main it now comes down to protection products with a small amount of investment, plus of course, Stakeholder pensions… Therefore the days of regular client reviews for the average client on an annual basis have become unviable and not cost-effective unless the client is prepared to retain the adviser on a fee basis.
It is an understatement to suggest that the prospects in the broad, domestic-based market are not too rosy. And it may account for the demise of many direct sales forces; to the point where they are now almost a thing of the past. Banks and Building Societies could be said to be the replacement and have grown in terms of their numbers of advisers.They succeed to the extent that they have a captive audience; again mainly in the domestic market. Many Bank advisers though, look to move to a more broad-based IFA role once they have the appropriate experience.
The IFA market is not immune to the changes that have taken place but has more realistic opportunities to work in broader markets and should fare better given the potential to work with high net worth clients. But even the IFA will have a hard time unless he has access to a source of quality introductions.
Ashwood Law has as its core strategy, the aim of providing quality introductions to our advisers. We achieve this through ongoing marketing intiatives. Each of these taps into a different area of the market and suits different types of advisers.
Currently we are seeing a volatile investment market brought about by the recession and the erratic price of commodities, both of which create uncertainty. It is at times like this that clients need sound advice.
It is the Financial Adviser's position in the market place that will determine his success or lack of it. In other words, the old adage "A salesman without prospects has no prospects" applies.
In fact one could state further that it seems that success is likely to be more related to the positioning of the adviser than even his technical or sales skills. He therefore needs to ally himself with an organisation that will help him develop introductions of high net worth or corporate clients.
© 2011 Ashwood Law LLP
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Ashwood Law LLP,
Ashwood Law House,
Newton Road, Heather,
Leicestershire LE67 2RD