At the moment it feels like there isn’t a day that goes past when we aren’t exposed to various media reports of poor compliance by some advisers and advice firms who have put their financial interests above those of their clients.
While quality advice has the ability to truly change the lives of so many Australians, the fact is that the actions of a few have had a major impact in the confidence of the advice industry.
In this period of heightened scrutiny, some advisers will thrive, while others will clearly struggle. The ones that will thrive will be those with a clear point of difference. They will not only highlight their differences with existing and new clients but I believe will embrace the following characteristics including:
- Continuous education
This is paramount, particularly in the areas which advisers choose to specialise in. With a wealth of information now available to all consumers, successful advisers will continue to hone their skills and provide the insights, education and coaching which comes with extensive experience.
- Embedding a compliance culture
This will be viewed as a serious obligation and not something that can be compromised on. While some advisers will consider compliance as a burden, others will embrace a robust compliance culture as a way of protecting their clients, protecting the reputation of themselves and ultimately helping to increase the overall value of the underlying advice business they work in.
- Client engagement skills
These will be viewed as equally important as technical skills. Clients often need help and guidance to derive their most important goals and objectives and successful advisers will have strong engagement skills to keep their clients accountable along the way.
So while the current environment is challenging, use it as an opportunity to stop and reflect. What are you and your business doing well and what areas need to be enhanced? Most importantly, what is your point of difference and how does this lead to better client outcomes for the clients you serve?
Adam McGuren is the national manager of Licensee Select.
