Weekend Digest for IFAs & Financial Planners (10th & 11th Nov)



In this installment of Adviser Digest, we give a summary of the interesting articles this week. Click on the title to read the full article(opens new window).


In For A Bumpy Ride?

Malcolm Kerr of Ernest & Young writes in MoneyMarketing about who the winners and losers will be in the post RDR world. He expects the number to investment advisers to fall by nearly 28%! This, he says, is not due to failure to meet the appropriate  professional standards but primarily due to mindset – of both advisers and consumers.

According to Kerr, about 20% of advisers are already ‘selling clear and compelling fee based propositions that resonate with existing and new clients.’ This process is normally designed with transaction in mind but the revenue model is not reliant on transaction taking place; as in “this is what we do, this is how much it will cost and this is why it might make sense for us to work together”.

At the opposite end of the spectrum are advisers who expect to carry one as ‘normal’ by simply wrapping up the ‘commission’ in a name – “3 per cent initial plus 0.5 per cent ongoing” – with no charge if the client does not transact. This approach won’t work in the post-RDR world.

It’s not all doom and gloom though, Kerr highlights 5 reasons to be cheerful about RDR.

  1. Technology will play a big role in improving the quality of advice, as will client experience.
  2. Clients will understand the value of professional financial advice and will pay realistic fees for it.
  3.  It’s unfortunate that  many advisers  might leave the industry but  this presents opportunities for those who remain to grow by taking on extra advisers or increase fees.
  4. New wealth management businesses will emerge,  owned or funded by insurers, asset managers and consumer brands, focusing the affluent
  5. RDR will be refined over time; – restricted or independent labels will probably be replaced with something more substantial such as professional financial adviser or chartered financial planner.

He summed it all up in the words of Charles Darwin, ‘it is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change”


Why Every Adviser Needs Life Planning Skills

Writing in Citywire, Nick Cann of the IFP delves into how life planning skills have become key to delivering a ‘great’ service for clients. Soft skills, whether dressed up as life planning or coaching, are essential are essential to the financial planning process.  It is not enough for advisers to just know about their client’s money.

 He refers to how the work of American gurus such as George Kinder, Bill Bachrach, Maria Nemet and Dan Sullivan are influencing the way  advisers work with clients.   While some will religiously follow a particular style because that style suits their personality and capabilities, most adviser can incorporate aspects they like into their own business process.  It is down to each adviser to find what works for them.


Mind The Advice Gap, ..Really Do!

You might had seen the headlines this week that RDR will create 5.5 million advice ‘ophans’, according to analysis by Deloitte. However, that is the least interest part of the report. 

In its report, Deloitte identifies  4 specific segments that, each of which presents opportunities for  firms ( Oh God, not providers!) with the right solution for each market.

  1.  The disenfranchised wealthy
  2. Tech-savvy savers
  3. Mass affluent orphans
  4. Mass market orphans


Better Blogging Strategies for Advisers

This article in the US-based Financial Planning Magazine shares some useful tips on how advisers can build trust with existing and prospective clients using blogging as a tool.  “People tend to work with people they like and trust,” said Marie Swift, Principal at Impact Communications. “A blog lets you reach clients with a more personal tone, and it can give your business a casual feel, like going to a business cocktail event.”

 In the end, the key to effective blogging is engaging content, posted regularly with a target audience. Take a look at  31 Tricks To Be A Superstar Blogger by American marketing expert, Heidi Cohen.


 I hope you have enjoyed this and hopefully it’ll make you job a little easier! As paraplanners, that’s what we do! As usual, thought and comments are welcome. Enjoy your weekend!






Abraham Okusanya
Abraham is the founder of FinalytiQ, a research consultancy for platforms, asset managers, and advisory firms. Recognised as one of the country’s leading experts in retirement income, platforms and investment propositions, Abraham has authored several papers on these subjects and delivered talks to the Personal Finance Society, The FCA and several conferences across the country.

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